Well.. We think so.
-200pts and dropped below 15k as of noon-ish.. Its lost about 400pts in almost two trading days
Just a fascinating sociological experiment-- shows that adults will still behave the same way when deprived of something not deserved but expected as when children are deprived a toy or an infant deprived of their mother's teat..
Like a drug addict fearing being deprived of his/her fix
Like a gambler being told the horse races will no longer be fixed
Like an alcoholic having his tab cut at the bar
Like a bum finding out his/her welfare checks will be ending..
Like a corporation finding out their tax credits will be ending.
If you're not personally directly invested in Wall Street, you should Not be rooting for its success.
Its like rooting for the sugar placebo to cure an illness that genuine medicine would cure if the 'Doctor' felt it beneficial to him to prescribe it...
And if you are invested directly, well.. sell.
There's a word you never ever hear on CNBC or Bloomberg..
You'll thank us in the autumn when QE infinity is sincerely being tapered off. You see the market reaction now, and that's based on mere rumors of it.
Everyone must invest.. must risk their precious hard-earned money in something.. OK, so where to put it if the Dow is dropping?
Remember all those people who keep hard-pushing on gold..
Well today its dropped over $81, a 6% decline in value to $1,292 as of this writing. The last time the precious metal has been valued this low was the beginning of 2011.
So someone who bought 5 oz of gold three months ago is looking at a loss in value this moment of $1,610.
Better hope for bad things to occur in the economy-- its your best chance to recoup any losses..
And you may think, well Europe or Japan markets look like good investment opportunities...
Well-- are they?
And Japan... Seriously?
On May 22, the Nikkei was trading at 15,627....
Today it closed at 13,014... a drop of over 1600 pts in one month..
Want to invest there-- go ahead..
Where to invest... Where to place the money.
Bonds? Treasuries? Real Estate?
The best way to possess capital is to retain it... i.e. don't spend.
There are two type of wealth generally-- old money and what is known as 'nouveau riche' or new money.
And those of old money-- They buy what they need for their happiness and without the slightest care or concern for how they are perceived. Many actually prefer to play down their financial situation and be as inconspicuous as possible.
New money people have got to invest-- got to seek profit at all cost.. Its obsessive-- yuppie 'Ahabs' hunting for the big white whale.
Old money is content to keep what they have.
Ultimately the 'new money' people are going to get decimated in either late 2013 or right after the holiday season into 2014.
The free money is going to stop.. the gravy train will end and the Big Boys are going to pull out of the market so quickly and violently, it will make the average Joe's head spin
You've been warned.
** Its 4:05p.. the Dow closed -353 pts at 14,758, the lowest its been since May 1st.. It has dropped almost 600pts in 2 trading days... And all because it is scared and angry that the free money will be taken from them and risk may be brought back into trading..