With the S&P 500’s enormously-overvalued P/E ratio I can’t help but think that the professionals are selling out like crazy leaving the folks the Wall Street crowd call “suckers,” the mainstream working American middle-class with their precious retirement and college savings in the markets, left holding the bag, which is emptying fast. It is truly a tragic sight to behold, but this is the way these supercycle busts always work in history too yet virtually no one seems to heed their hard lessons.
Yeah, we're all doomed. It's over. The markets will never get back to this level again. Go short forever. http://www.macrotrends.net/2324/sp-500-historical-chart-data
OK, so what is your plan? What will you do to position yourself to take advantage of your opinion, and how much are you willing to lose if you are wrong?
I always smile and roll my eyes...when someone tries to predict the (far) future -- or tries to make a case, or call, on direction Trading the market is part art, part science -- and can stay irrational longer than you can stay solvent. The quicker you realize that, the better you'll be off. Try to predict how the DOW or SPY will behave or act during the day ahead, before the opening bell rings. -- if you can master this you are rare.
If Trump gets rid of the illegals it is estimated that's a rise of about 3 million prisoners in jail while awaiting transport. So new jails ? And just who is going to do the lowest paid crap jobs ? Not your average overweight American. Just how does he propose to get back all those jobs that have gone abroad ? Huge tariffs on foreign made TVs, fridges etc. ? His stupid policies will be struggling within 6 months. He will need to build walls to keep people in not out.
Look! The bottom line is a major stock bear is awakening. The new Fed tightening cycle marks the end of the most extraordinary record easing in history. Its combination of record-low interest rates and record-high money printing unleashed vast deluges of stock buying resulting in recent years’ artificial levitation. But it was totally unjustified fundamentally, with stocks soaring far faster than profits leading to near-bubble valuations. With those extreme Fed tailwinds suddenly shifting to headwinds, the Fed-fueled stock-market levitation is rapidly starting to unwind in this young new year. And this selling is just getting started, as nothing short of a full bear market will force extreme valuations back down to fair value. The chickens are finally coming home to roost for the Fed’s radical stock-market distortions, and the reckoning ain’t gonna be pretty! Obama could not care less about you or me. Only by understanding the markets in their actual strategic historical context, with mighty cyclical overvaluations giving way to gaping cyclical undervaluations over decades, can investors successfully beat the market year after year. Only a few investors are the contrarians, who fervently strive to understand greed, fear, valuation, and history and do not buy into all the hype and obnoxious lies of Obama.