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Global Economy Bursting?

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Many many more dances coming .... but your sure have to pick your partner with great care ... there is going to be a lot of stepping on feet ....
 
Anyone caught up in what happens on any given day is asking to get their feet stomped on by others. I enjoyed watching the roller coaster today. Nothing quite like listening to everyone trying to explain what is happening even though they have no clue. :rof:

There is never one reason anything happens in the markets, and one day never makes a trend. Only fools get caught up in paper gains and losses, only when they are realized do they matter.
 
PropertyEconomics said:
Many many more dances coming .... but your sure have to pick your partner with great care ... there is going to be a lot of stepping on feet ....
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Friend of mine may have come up with the ideal stock for this decade: NY Stock Exchange
- market up,
- market down,
lots of trading = lots of money
 
Couch Potato said:
Anyone caught up in what happens on any given day is asking to get their feet stomped on by others. I enjoyed watching the roller coaster today. Nothing quite like listening to everyone trying to explain what is happening even though they have no clue. :rof:

There is never one reason anything happens in the markets, and one day never makes a trend. Only fools get caught up in paper gains and losses, only when they are realized do they matter.
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You are right, I would wait awhile before getting back in. I think we need to pass a certain point to feel comfortable.
 
People do not understand what is coming. What the FED did is to adopt the Japan strategy: Permanently low interest rates.

Over time (the next 2 years), savers and retirees have a choice; buy equites or buy fixed rate instruments. Retirees need income to live on. With the market volatility increasing, and long term trends not favoring equities (investing in the S&P 500 10 years ago yields roughly zero return as of today), retirees are going to sell their stock holdings and buy more fixed rate instruments.

The retirees and pension funds have the same problem. The California Public Employees' Retirement System, the nation's largest public pension fund, has lost about $17 billion since the state's new fiscal year began July 1. Monday's loss alone topped $6 billion. Tuesday's gain did not erase Monday's loss. Today, the the market is set to open lower with increased selling. However, the pension funds need an income stream to pay current retirees. That income stream needs to be increased as more members retire.

Looking at the U.S. Treasury yields this morning, a 2 year note yields 0.17%. A 10 year note yields 2.16%.

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There is no penalty to hold cash; essentially zero yield for cash or a 2 year U.S. Treasury note. Corporations are not investing or hiring, here, but choosing to hold cash. Is that because they can't beat a zero percent return? Or is it the uncertainty of what the risks are and what the returns will be? Consumers are spent out. Consumer incomes have dropped and will continue to drop.

Market volatility will continue. The next year trend is down. Cities are going bankrupt and those retirees will be shifted onto Social Security and Medicare.
 
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People do not understand what is coming. What the FED did is to adopt the Japan strategy: Permanently low interest rates.
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Jim Cramer came to that conclusion this morning when he mused that we are looking like Japan now....not a comforting thought.

They also are beginning to recognize that this computerized trading is yo-yoing the market in predictable patterns which means the computer traders are trying to vet those cycles even more...it really does set us up for another crash...flash or otherwise.

Finally...hmm. France - seems there is some folks making runs at the banks to sort of test how much they can withstand..hoping to find a weak one and short it into the basement even if it means taking that country down with it...Scotland bank rumors, France, Italy, the vultures are circling.
 
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