Careful with the market. There are no real reasons for it's gains over the last year except speculation and exuberance. Publically traded company stock prices are going up stronly in spite of the fact that there are no business reasons for them to do so. Inflation accounts for some of the gains, but not all. Other investment vehicles are doing so poorly that stocks remain the only way to realize gains for the time being which increases the demand for them and when demand goes up so does the price. Participating in that is dangerous because the when the market is caught up in a speculative rise, not a deserved one, it can also fall dramatically and rapidly.

When increases in money supply, government debt, inflation, interest rates and income track merrily along together things are fine. When they do not a "bubble" is created between those out of whack. If the bubble grows large enough it bursts.

Currently there is a huge bubble growing between money supply and government debt and the other three factors. Debt is at an all time high and the Fed is printing money like crazy. However, incomes are stagnant while interest rates and inflation are being held down artificically by Federal Reserve and US Treasury policy.

Also consider that the consumer price index does not reflect true inflation. While the government would have you believe that inflation is nearly nonexistant ask yourself what you paid for a gallon of milk, pound of meat, box of cereal, gallon of gas, rent, and all those things you buy everyday and what you pay today. That is the real reflection of inflation, not the CPI that adds things like cars, washers, computers, TV's and other stuff you buy every several years and get cheaper to make every day anyway.

Interest rates are being controlled not by the markets but by government fiat. They are dictated. Currently banks only hold about 30% of the assets of depositors. In other words if everyone went to the bank to take all their money out they banks don't have enough cash to pay them. That is what happened in Cyprus.

So the bottom line is that a huge bubble has been created between actual wealth and what government has artificially created as "wealth" that really is not. That tactic works for a while but not indefinitely. When that bubble bursts, and it will, the market will collapse as it always does when that happens. It is only a matter of time. That is difficult to predict but it is safe to assume that when the several trillion in unaccounted cost of "Obamacare" hits it will push it over the edge.

When this current market collapses there will be no time to react to protect your assets there. It will be rapid and irreversible. It will be over in days at best, probably overnight. The losses in the market will make the last one and the "Housing Bubble" seem like an infant fart in a hurricane. It will rival if not exceed the losses of the crash of 1928. Beware the stock market....it is a loaded trap ready to spring at almost any time.

Obama has accomplished something other Presidents failed to do. He has made many Americans lose faith, hope, and pride in their country!!

the last year? now that's the epitomy of short term thinking. look at the last six years. sure, i adjust my diversification so as not to be overexposed in sectors that have gained appreciatively. i have a nifty little diversification watch thingy that sschwab provides at no cost to me. for every sector that has gained to the point of being overvalued i have no problem selling and finding undervalued sectors. am i always right? hell no and rare is it my own thinking as much as hearing and reading the thoughts of others. but i have learned to listen to a cramer or buffet and then follow up on what they say with my own reseach. i'm not suggesting that you should be in the market. i see you as a sky is falling paranoid who thinks that things can only get worse. you should put your money where you feel secure. your treasure won't even come close to keeping up with inflation where mine has nearly trippled since 2007 but at least you'll feel safe. but if my portfolio value was cut in half tomorrow, i've gained by being active in the market over the past four decades far more than any investment i can imagine.

as to interest rates. it's not unlike being pregnant. they are what they are. if you're pregnant it doesn't matter that you were f**ked by your loving spouse, in an illicit affair, by your boyfriend in the back seat of a chevy or raped. you're pregnant and like interest rates, deal with reality not what would be, could be or should be.

That's the Job of Glen And Rush.


If you weren't proud of taking out "Bin Laden" If you aren't proud that the stock market is the highest ever, if you aren't proud that Ford, Chevy and Chrysler. Are still in America.



Buddy You've Got your Head up your posterior Orifice!!!

the stock market cannot sustain its climb.