Are investors going to start seriously pulling money out of the markets?
Doc is with us today to discuss the continued grind down in the US markets. The markets have recovered from earlier lows but the fact remains that we are in a downtrend and closely approaching support zones. The most important consideration is whether we will see investors start pulling money from the markets with more ferocity and if the markets can be saved.
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There are catalysts to send lower….
Falling profits, lower production levels, etc.
The general public seem to over-spend perpetually.
Where is the incentive to save? That has been destroyed by the Government.
The government seems hell-bent on stimulating spending to prop up the economy.
But in so doing it is also destroying the free market and capitalism.
Buy the dip!
When people realize stocks can never go down again they will realize they are missing the greatest bull market in history.
This time it is different.
Any downturn and FED simply buys stocks with money created out of thin air.
What could go wrong?
The audio is corrupt. Needs to be re done.
It is just not worth owning stocks as they get pulled down by the market influences. It is easier to just trade oil which is showing strength and I can get sure gains by buying the dips.. I tried getting into BP but got out with a loss on the bounce. Not holding any co. stocks now.
The companies have more leverage than individual commodities, and generally that is where my interest is. If people don’t like the risk of individual companies, then there are the ETFs that can be easily traded. As for Oil it moves to slow for me, unless one uses the 3 x leveraged UWTI and DWTI, but those vehicles are much more volatile and really are designed for short term trading (or even intraday trading). I know you think they are playing with dynamite, but if one is convicted of a trend then they are just like waiting for a month for a move in Oil only in 1-2 days, so to me the concept is the same, just the time frame gets compressed.
I have been using USO lately. You just buy a bigger dollar amount for more risk. I bought the dips the last 2 weeks and took a gain of well over 9,000 this week and started buying the dips again this week. I like buying USO every 10 cents down which is 50 cents in oil.
I can’t seem to get a short signal.
I am almost always fairly fully invested. I just vary whether I’m short or long, and in what sector I’m invested.
With interest rates where they are, I just don’t see the point of putting money in banks.
I put away some gold and silver when I think it’s cheap. I have not sold that.