You guys start one of these threads every freaking day and each time I try to hint as to why this market cannot go down too far, yet you are too stubborn to accept it. This market is priced in $USD and the supply of $USD is constantly growing at an increasing pace. So simple economics can show that if the supply of USD is growing that means the buying power of each USD is lowered by a proportional amount, leaving all other factors constant. Soooo, if the supply of USD grows by 10%, that means the US equities should increase by about 10%, assuming nothing has changed too drastically. But let's take a more realistic look. While a big portion of the current US equity market is a bunch of BS companies with no real useful assets besides "technology" that is really more of a luxury than a vital commodity (yeah like GOOG), there is also a big portion of REAL companies with REAL assets. Like anything from metal mining, construction, food, commoditized production, etc. If the market "crashes" while USD supply continues the same growth, these companies because a great bargain for the rich who want to grab real vital assets. Think of companies like GE, Dupont, Caterpillar and the other big cap industrials that have not fully sold off their real production assets. It's just asset inflation via Mexico style. There is a lot going on behind the scenes abusing this fraudulent financial system that is only going to make sure this market cannot go down too far. Also, do not forget the big banks who are becoming a bigger and bigger portion of this market. These guys are the key orchestrators in the paper pushing game. Do you really think they are gonna let their own stock take a serious dive?
How can anyone not view the last four years as the greatest asset inflation ever? Was there any real growth at all?
We are not there yet as long as we keep seeing these posts with people trying to fight the trend. It's like trying to short the market in Nov 1999. You had your arse handed to you until Jan 2000.
there are some decent short out there...look atLEH, and GS...leading the way for brokers andthe financial sector. look at the pharma sector the last couple of days (although i am now longs and it is oversold) some of the ETFs would be travel and leisure, retial, real estate, finance. and the majore indices are giving an indication that they may rest for a few days.