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-- CNN MoneyDon't you just love that "despite"? I mean, you'd think that CNN could afford to hire headline writers who knew something -- anything -- about economics, so that the headline might read:
Obamanomics causes stock slump
What almost nobody seems to realize is that we're passing 7,500 en route to 6,000. This is not temporary "profit-taking," but permanent loss-taking -- the de-capitalization of Wall Street, as the smart money pulls out of U.S. stocks before we go from very bad to much worse. And if you think the stock market is scary, just wait until the bond market comes down with the heeby-jeebies. Get ready for Weimar America, people.If I had one word of advice, it would be: SELL. And if you asked me for two words of advice, I'd say: SELL NOW.
You want something even more scary? We broke a flag & pennant technical pattern today. The pole ran from 1300 to 741 on the S&P. That places the bottom at roughly 200pts. There's also a long term double top on the indexes which puts the bottom somewhere in the range of 200-400 pts depending when you believe the run up started.
ReplyDelete"If I had one word of advice, it would be: SELL. And if you asked me for two words of advice, I'd say: SELL NOW."
ReplyDeleteOn the other hand, we are approaching a buying opportunity the likes of which hasn't been seen in a century. If you're dollar cost averaging into an index fund right about now and have a long time horizon, this it definitely not the time to stop.
It would have been funny to watch Wolf Blitzer blovinate, if the situation was not so serious.
ReplyDeleteIn the Situation Room, he was all on about what a great start the good POTUS was off to.
Then he mentions, almost as an aside, that the Dow had tanked today. His analysis was along the lines of "experts think this indicates that the recovery is going to take longer than previously expected".
Thanks, Wolf, for your willful non-dot-connection.