Collapse? I used to think so. I see that it's doubtful now though, but we will certainly go through a depression of a major correction. It will be a long grind, a slow and steady decline in the standard of living. They can kick this can down the road for a long time. In the meantime, don't buy into all the doom and gloom and trade the best of your abilities. There is ALWAYS profit to be made somewhere
Well I believe in creative destruction. This coming crash will sort out a lot of things that QEx is just making worse.
i like everything you said. i won't trade anymore this year though i took my short play out and gave up today. i still have a short fund i bought last month though. i know i will lose a little if we run up but i think i will do good in the end. i can't deal with this market anymore. i will buy on the correction and hold for a few years. if you want to trade everyday you can't look at the doom and gloom you are right . the fed is your friend until the sh*t hits the fan haha.
Will disappointed job report tank the markets tomorrow? markets didn't tank on the not so rosy job report last month
Last month bad news was good cause that meant an inch closer to QE... At some point in the future we'll call what's going to happen next the Bernanke Bubble - there are just way too many companies running around at 10-20x revenues being pushed up higher and higher by QE and Govt money flow from around the world. The low Treasury rates have made a bubble out of REIT stocks (& anything with a yield on it) which benefit from people chasing yield and the ability to borrow at low rates which make them look healthier then they should be. An article at SA was talking up REIT stocks with 2% yields ... we'll see how that ends in a year or two when Treasuries get back to a more historical norm. How long can the Fed pretend there is no inflation ? I guess those guys don't shop for groceries !