Is It Time To Leave The Stock Market?
I wanted to write this post earlier this summer, but had a health incident and surgery last month. I'm doing well and finally getting back in the swing of things.
I realize a good number of folks have already asked this question and answered it in the affirmative. They saw two major crashes in 2000 and 2008... hated to look at their 401(k) statements month after month with no hope of improvement... and just couldn't stomach the volatility and uncertainty of the Wall Street Casino. There are still some stock market true believers who are staying in the game; probably from their loyalty to a brokerage firm, or believing the old myth that "nothing beats the market in the long run."
Long term buy-and-hold investing has been debunked since 2000. Nimble swing traders can still scalp short-term profits, but it's getting more difficult for amateurs to win on Wall Street. That's because a majority of the daily trading volume comes from computers - not from individual traders or fund managers. This High-Frequency Trading (mainly from the large investment banks and brokerage firms) has made stock trading the equivalent of a rigged carnival game, and not a free, fair or honest market.
The recent increase in stock market and real estate values was fueled by ultra-low interest rates, "Helicopter Ben" Bernanke debasing the currency even more, and probably intervention by the Federal Reserve, the federal government and/or the big investment banks. It's given unsuspecting Americans the illusion that the economy is coming back, and happy days are here again. But nothing could be further from the truth.
Government bailouts of the big banks never solved the causes of our financial problems, which were (and still are) excessive money-printing and credit creation - mixed with a lot of good stories and short-term speculation. This financial leverage kept the economic good times going, and helped avoid normal economic downturns. But just like an alcoholic who keeps drinking to avoid the hangover, eventually he will have to deal with it - just like the United States will have to deal with the biggest financial "hangover" in the history of the world.
And this hangover will affect US citizens and markets for many years to come. Hoping and waiting for the economy to "get better" so your stocks or mutual funds will come back is a bad investment strategy. If you haven't done so, sell your stocks, ETFs and mutual funds and convert a good portion of your cash into physical gold, silver, food and commodities you can barter with.
If you (or someone you know) can profitably and safely trade stocks, futures or other markets on a short-term basis, that's fine. As I said before, long-term "buy and hold" investing isn't a wise strategy. Economies, markets and currencies are more volatile than ever before - and I don't see that trend changing any time soon. Because of these reasons, it's time for average Americans to get their money out of the stock market.
I realize a good number of folks have already asked this question and answered it in the affirmative. They saw two major crashes in 2000 and 2008... hated to look at their 401(k) statements month after month with no hope of improvement... and just couldn't stomach the volatility and uncertainty of the Wall Street Casino. There are still some stock market true believers who are staying in the game; probably from their loyalty to a brokerage firm, or believing the old myth that "nothing beats the market in the long run."
Long term buy-and-hold investing has been debunked since 2000. Nimble swing traders can still scalp short-term profits, but it's getting more difficult for amateurs to win on Wall Street. That's because a majority of the daily trading volume comes from computers - not from individual traders or fund managers. This High-Frequency Trading (mainly from the large investment banks and brokerage firms) has made stock trading the equivalent of a rigged carnival game, and not a free, fair or honest market.
The recent increase in stock market and real estate values was fueled by ultra-low interest rates, "Helicopter Ben" Bernanke debasing the currency even more, and probably intervention by the Federal Reserve, the federal government and/or the big investment banks. It's given unsuspecting Americans the illusion that the economy is coming back, and happy days are here again. But nothing could be further from the truth.
Government bailouts of the big banks never solved the causes of our financial problems, which were (and still are) excessive money-printing and credit creation - mixed with a lot of good stories and short-term speculation. This financial leverage kept the economic good times going, and helped avoid normal economic downturns. But just like an alcoholic who keeps drinking to avoid the hangover, eventually he will have to deal with it - just like the United States will have to deal with the biggest financial "hangover" in the history of the world.
And this hangover will affect US citizens and markets for many years to come. Hoping and waiting for the economy to "get better" so your stocks or mutual funds will come back is a bad investment strategy. If you haven't done so, sell your stocks, ETFs and mutual funds and convert a good portion of your cash into physical gold, silver, food and commodities you can barter with.
If you (or someone you know) can profitably and safely trade stocks, futures or other markets on a short-term basis, that's fine. As I said before, long-term "buy and hold" investing isn't a wise strategy. Economies, markets and currencies are more volatile than ever before - and I don't see that trend changing any time soon. Because of these reasons, it's time for average Americans to get their money out of the stock market.
Labels: 401k, Ben Bernanke, Federal Reserve, gold, IRA, mutual funds, silver, stock market, Wall Street
posted by Brian Ochsner | 9:31 AM
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