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The markets are flopping and chopping wildly here – up or down hundreds of Dow points every few days. The obvious reason: Everyone is waiting for the Federal Reserve’s “oracles” to come down from on high and tell us what the future holds for interest rates, but they’re driving stocks to and fro as they place their bets in anticipation.
But what if … just IF … we’re already in a new bear market? What if it literally doesn’t matter what the Fed does or says this week, and stocks are going to drop anyway?
It seems like heresy to suggest such a thing — especially after today’s rise. And after all, many Wall Street investors have been lulled to sleep by six-and-a-half-years of funny money. They’ve grown complacent – convinced that an ever-present “Fed put” will save them no matter what.
But I believe I’ve laid out a convincing case that Janet Yellen and her ilk can’t keep the balls in the air much longer. Multiple rate cuts, QE announcements, and other easing steps overseas haven’t stopped markets from weakening anyway. Plus, the technicals, fundamentals and economic backdrop all argue for lower stock prices.
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| Despite occasional bounce-backs, are we actually in a bear market? |
If I’m right, that means you’re going to have to dust off the old bear market playbook – one that many investors have all but forgotten! Some key playbook pointers to get you started:
In bear markets, you can find a select few stocks with stable businesses, generous yields, company-specific catalysts, and high ratings that will outperform or generate gains. But they’re much fewer and farther between.
That means you need to maintain much higher levels of cash. It also means you can’t just buy any old ETF or big-name stock — or listen to tired Wall Street “buy and hold” advice — and expect to make money. You have to get extremely selective. Or better yet, you want to find someone with a lot of experience predicting past bear markets, and trading their way through them.
In bear markets, long, grinding moves lower … and a few interim mini-crashes mixed in … are the norm. Equally normal are furious, short-term, short-covering rallies that suck people into thinking everything is fixed.
Go back to the 2000-02 and 2007-09 bear markets, and that’s precisely what you’ll see – and of course, it’s what we’ve been seeing for the past several weeks. So if you’re a more conservative investor, you should take advantage of those short-term rallies to lighten up dramatically – and wait for nasty spikes lower to add the few cheap, high-quality stocks you want to stick with no matter what.
What if you’re a more aggressive investor? Then forget about “buying low and selling high.” You want to “short high and cover low.” In other words, take advantage of countertrend rallies to sell stocks short, buy put options, or add inverse ETFs – strategies and instruments that rise in value as stocks fall.
| “In bear markets, you can find a select few stocks with stable businesses.” |
I’m fully aware these strategies aren’t popular among the conventional Wall Street crowd. I know they haven’t worked for more than short periods of time over the last six-and-a-half years. I can’t tell you precisely what the Yellen Fed will say on Thursday, or how markets will react in the very short term thereafter.
But I do believe the big picture outlook is more challenging for stocks now than it has been at any point since 2007. Consequently, I believe the possibility we are now stumbling back into bear market territory is the highest it has been in several years. So I want you to be prepared and ready to take even more steps than I’ve already suggested if we get more confirmation the bear truly is back.
So what do you think? Is it time to dust off the bear market playbook? Or is it too soon to make that dramatic of a shift? What about this week’s meeting? Can the Yellen Fed take back control of the market, or is the market spinning off its axis as I suggested recently? Let me hear about it over at the Money and Markets website.
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While waiting to see what happens with Federal Reserve policy and how markets react, you took some time to comment on the other big news items out there – namely, China, the Middle East, and Europe.
Reader Peter W. said he thinks China is trying to get on the right track with regards to its economy. His view: “I think the world is in the midst of paying for its arrogance. But China has learned its lesson and is changing for the better. Many have been arrested and changes made.”
But Reader Fred 151 countered: “I don’t know about that. China is invading the offices of investment companies and businesses to take records to see who has sold stocks. If you have sold a stock, you could be in big trouble and could be prison bound. Now think of that: Would you be likely to ever buy another stock? Not me!
“I think they are (once again) shooting themselves in the proverbial foot by scaring the heck out of all their investors. The Chinese have not learned squat, in my opinion.”
Meanwhile, Reader Richard offered this take on the migration boom in Europe: “The refugee problem that Europe has is the tip of the iceberg. Unless someone can stop ISIS, it will only get worse.
“The West had better wake up soon and work out ways to stop the never-ending supply of ammunition, and seemingly endless supply of Toyota trucks, that the terrorists like to run around in. The West seems to be burying its head in the sand, and pretending it is not their problem. Maybe the refugee crisis will spur them on into doing a positive reaction to the crisis.”
Finally, Reader Mike R. said: “The refugees are coming from countries where population growth exceeded the resources and the ability of their governments to handle it. The results are civil wars, religious wars, genocide and mass exodus.
“The Germans are going to regret opening the flood gates. For small countries like Hungary, Austria, Slovakia, this is an existential threat, based on their experience a few centuries ago, as well as recent experience with immigrants in France and U.K.”
Let’s face it: There are no easy solutions to what’s going on in Europe. Policymakers want to do the humane thing to help those fleeing war and poverty in the Middle East and Africa. But many governments fear being overwhelmed by the costs and other burdens of flinging open their doors. Long-standing cultural and language barriers and concerns are driving other reactions, not all of them encouraging.
As for China, I don’t see much the government can or should do to prop things up. Too much mal-investment and too much easy money helped fuel asset bubbles over there, just like it did here. The downturn China is facing now is the inevitable consequence of the booms that preceded it. Central bankers both here and there never seem to get it!
Anything else you’d like to share on these or other topics? Don’t hold those comments in then. Post them at the Money and Markets website.
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The QE addicts didn’t get another fix from the Bank of Japan overnight. Policymakers there refused to boost the current 80-trillion-per-year QE program, claiming the economy would recover and push inflation up to its target.
But the program that has been in place since April 2013 obviously hasn’t worked, or we wouldn’t be in a position where some are asking for yet another round of Japanese QE. And as I’ve said over the past few months, investors are no longer buying central bank actions for more than a few minutes or hours. They’re selling into those rallies. That’s a change of pattern from the past several years, one you should take note of.
Will the credit lifeline finally run out for cash-strapped oil and gas drillers? That’s what the Wall Street Journal says could happen soon as banks re-evaluate credit lines in October, potentially driving some firms into bankruptcy. Others will do their best to survive by pushing suppliers for price cuts, selling off assets on the cheap, or turning to private equity saviors.
Hungary tightened its border controls to stem the flood of migrants into the country, fortifying the frontier with Serbia and closing down a rail crossing that some immigrants had been using.
Wildfires continue to rage in Northern California, claiming one life and forcing 13,000 to leave their homes. Drought and high winds helped exacerbate the blazes, which have burned some 270,000 acres.
What do you think about the latest BOJ move, or the outlook for oil and gas producers? Any thoughts about Europe and what happens next, in light of the ongoing migration crisis? Use the website as your outlet today.
Until next time,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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Economies grow when investors have the confidence to take risks. Intervention from the FED is just an impact on confidence.
The majority of the refugees (at least the Islamic ones) should be resettled in Islamic countries. Saudi Arabia should use the money that they’re planning to use to build mosques in Europe to help in this effort. Europe already can’t deal with the number of Islamic immigrants they have. Most make no effort to assimilate and they lack the necessary job skills to survive without welfare. I hope we do not follow this path, but under the current Administration fear that we will.
Amen
More mosques in Europe? More madrassas to teach Arabia’s Wahhabi brand of Islam, that has sprouted ISIS/ISIL. Yeah, we and Europe need that… like a hole in the head. I do agree the refugees should be sent to other Islamic countries – if they will accept them. Even if Europe – and the US – has to pay those countries to accept them it would be a bargain.
The current administration has deported more illegals that any of the Conservative Administrations since the Republican Revolution in 1981 (when the borders were really opened)… A fact that the Conservative Screamers at Clear Channel have failed to mention…
most likely the same ones over and over and over again
You are quoting the Obama Admin numbers. Good try, Mike. Past admins NEVER added in the illegals caught trying to cross the border. Obama does. That drives UP the numbers of returnees. Makes the numbers you quote look good. Always a catch when you quote Obama numbers. Always.
Who told you that? Limphog…. Show me the real site of that statement!…
SHOW US THE TRUE NUMBERS YOUR TALKING ABOUT MIKEY everybody here knows liberals are liars BARACK OBAMA is the king of b/s you come a close second ……………..oh wait you and hillery are tied.
Problems in the oil patch – they are serious. Between 2009 and 2014, some $5 Trillion in debt were accumulated by drillers and suppliers on the assumption that oil would stay between $80 and $110. You know what has happened. There have already been eight bankruptcies since the first of the year, and more are coming. The reason oil production has been climbing, is that drillers are madly pumping, hoping to make enough at present prices to service their debts and avoid Ch.11. That, of course keeps the price of oil low, and increases the probability of more bankruptcies. More bankruptcies will weigh on debt issuers with serious problems there. That will weigh on the whole economy, with whatever that will mean for the average person. It is hard, with all the other problems creeping out of the woodwork, to avoid the likelihood of a bear market, if not a more serious outcome.
Thanks Chuck. It’s nice to see someone else realize that low oil prices can’t be good for the worlds number one producer. Your analysis is very accurate. Jim
Just saw on another service that while WTI is down 52% the 30 stocks they monitor are down an average of 66%. Also the bonds of those companies are selling at a 25% discount to par. That ain’t good.
I think the markets are already in a bear. It’s a steathy, slow motion kind of a bear that began in mid-April of this year. Many stock prices are down significantly since then. Only a few large and popular names have been hold the indexes up. What to do about it? NOTHING, because that would entail Market Timing! If you think you can sucessfully time the markets, GOOD LUCK it has never been done except in a few rare cases where someone got incredably lucky.
Thursday is September 17 and the Bible strongly reveals that this is the number of SUFFERING (see Genesis regarding the day that the human-eradicating Great Flood began). Moreover, 27 (being 3 times the cyclic number 9 of endings) will be the day this month when there will be a powerful full moon lunar eclipse, which further denotes the important aspects of this intensified number 8 (money and all material aspects of life) world month in this number 8 world year (2+0+1+5 = 8). Obviously, October is destined to be a momentous and shocking month for the financial and economic global conditions. Indeed, computer analysis reveals that October 27 is the most precarious day of each full year, especially regarding the stock markets. Hint: BUY GOLD and SILVER now!!!
You don’t need a weatherman to know which way the wind blows. Jim
Watch the tides and the alignment of the Sun, Moon and the Earth… You’re going see either some powerful earthquakes or volcanic eruptions or both.
Beware of the extraordinary heavy dust veil in the upper atmosphere produced by the volcanos… It could force Earth into an early winter with lots of snow and ice or even the start of the next ice age…
Whoa… At the same time the Fed knocks the economy for a loop with higher interest rates… Could be a double whammy there Mike S.
OMG, now we’re resorting to Numerology! Of all the supersticious crap flying around out there, this takes the cake!!
It’s bearish if they don’t raise rates. Not if they do.
It may be bearish either way.
The US, Russia, China and Europe must get together and remove and purge ISIS with a massive exercise of force. This is a world problem that has to be eliminated quickly and without mercy.
The refugees should be returned to their camps until ISIS is purged from their lands and they then can then return to their land and build and prosper.
The world should combine and help the refugees to establish a proper and fair society run by the rule of law.
A multi nation commission would be required to supervise the fledgling governments until they can become stable.
Hugh, sorry but I betcha gold goes to $1M/oz. before any of the Muslims have a stable government…!
Well I’ll be…..This is correct! No Middle Eastern country has had a stable government in centuries! And to make thing even much worse, the Western Powers (read the UK and the US) created a bunch of artificial borders in that region after WWII!
The US getting rid of ISIS is a joke at best. The US created ISIS originally to destabilize Assad in Syria. And what is worse, the US is still covertly arming ISIS to this day. But that truth will never see the light of day in this Orweillian nation state called the USA. The military industrial complex will never cease and desist with their endless “conflicts” around the world. There is way too much money to be made from arming BOTH sides.
I absolutely agree!
So do I. Jim
I have absolutely no sympathy for the Europeans. The inventors of the Social Welfare
State and political correctness are getting exactly what they deserve. This is just the latest example of hungry, unemployed barbarians overrunning a civilized state gone soft In the head. With their wonderful history and highly educated citizenry they should have known better. Jim
Yes, one would think so! But, no not happening there.
China is way in over its head and the collapse will continue for several years as global demand is gone, qe’s, ghost towns and 200% defaults surge in the past 9 months, as well as continued flight and devaluing pushes them into the dark hole.
Germany needs the migrants to shore up their demographics, create spenders, babies and work force, however their qe’ will backfire too and the resulting devaluation and global recession will over come Europe – which has already been in trouble from the prior global wreck less expansion.
Japan died a decade and a half ago – even their lexus has fell off the cliff; so notwithstanding the real estate crash, deflation and a short supply of workers (nothing to sell anyways) Japan is now 2 years into “qe” and “buying bonds” – looking for a ray of sunlight into their very dark cabin.
The U.S. Is right behind China with a triple digit debt to gdp (fracking died) and declining economics; and a global recession. I’m not going to bother talking about “qe” and the consequences therefrom / after!
Look for austere similar to Greece, on all shores starting in 2017.
Wyatt… Where the heck are the ISIS migrants going to get the money to shore up the economy in the European countries when 1) They won’t work, plus European unemployment is already in the 25% range, 2) they have exactly no skills other than removing heads, 3) they sure as heck didn’t bring any with them hoping to beg, steal, rob. and plunder whomever they might come upon…?
Smith, How did you reach the conclusion that ISIS is any part of the discussion of global economics?? Or that ISIS is migrating to Germany??
Do you not watch the news Wyatt…?
Mike: It is obvious to me that Saudi Arabia will not cut production. Their intention is to put our frackers out of business. They feel betrayed by us due to this stupid agreement that we negotiated with Iran. Our frackers have financed their operations with the sale of junk bonds. I am concerned that we may have a crisis in junk bonds due to default. The right thing to do is for the government to lift the ban on exporting oil. This will reduce supply and eventually support the price of WTI. We need business people running the country. Our politicians do not have a clue. Regards, Robert Calabro.
Right on Robert… Great synopsis of the events in the “oil patch.”
Robert, our politicians really do have a clue, they simply like what is taking place…
Of course they have a clue. They ultimately plan to do to the oil industry what they have already done to the coal industry. They won’t be happy until we are all shivering in the dark. Jim
Correction: Liberals will NEVER be happy! Jim
Jim,
Sorry you are having a hard time in the oil patch…. I made a two bets with an old college chum when Cheney/bush came to office…. The 1st was that within a few years Oil would be going to the Moon over a $100…. The Second bet made at the same time was that once Cheney/bush were out of office Oil would sink line a brick…. And go as low as $40 or lower…. Won both of those bets….
Simple Economics 101: Then you drive the price of oil above it’s fair price, tons of producers will find more oil and eventually the price hike will be reversed…. Simple free market behavior that the Conservatives are so quick to call for, but often try to circumvate in secet!… :(
Thanks for the sympathy Mike, but it’s not necessary. My family has been in the oil business for ninety years. We are fully acclimated to the cyclical nature of our business. I’m harvesting hardwood pulp now and doing just fine. I can’t disagree with a thing you just said. Jim
I would disagree on one point. You were lucky on your bet. Oil prices are not a Conservative-Liberal function. The Saudis are the swing producer and have had absolute control of prices for many years. It was their decision not to cut last year that sent oil prices plummeting. The anticipated global slowdown was also a factor. We have been oversupplied since 2011. The secrets to surviving long term in the oil business are diversification and NEVER borrowing money to throw down a 4 1/2 inch hole in the ground. This policy keeps us small but also makes us bulletproof. The shale producers have violated this rule to their peril. Allowing American producers to operate in the world market would benefit everyone. Jim
I just knew Cheney would do something. Then came that “Secret” meeting of the Producers and Refiners and there it was…… Another Conservative lie when he said roughly that they were meeting to “save the consumers”! What garbage snd then there it was as billions of oil futures were run up and suddenly we had a fabricated “shortage”….. My friend worked for Mobile Exxon as an Executive and life long conservative, despite coming from poverty and getting through school on next to nothing because one of his Mom’s job benefits was that she worked for the University!(thanks to her Union)…. :( How quickly some people forget……
Mike, how do you think the $ Dollar will react in a bear market; will it rise or fall ?
Mike
Only going to respond to what the FED is going to do tomorrow. We are in an out of control market because of all the free money. It’s actually what do they have to do and should have done back in January 2015. They need to raise rates progressively and slowly over the next 2 years to bring inflation up between 2 and 3%, I think the stock market and treasuries will react positively. The bond market is not going to do that well for another 5 years. Equities will do great, and even interest rates on savings accounts will rise with inflation and hopefully a bit more. The value of the dollar will come down and it needs too to make our exports more competive. A lot more than raising the FED rate to increase our GDP and that is the Free Trade Agreements need to be renegotiated or abandoned. Countries that are deflating their currency compared to our has tilted the wealth on their side of the table and we are the losers. This is one reason I can not vote for a guy like Trump, he is perfectly happy with the U.S. Being a service station instead of a manufacturing source, I am not. I would but high tariffs on foreign goods so Americans will buy American. Trump will not do that, in fact I don’t believe any of the candidates would and if I find one, he or she will have my vote.
Don’t Worry Bill,
There is not a chance in hell that Trump will get elected, nor will ANY of the Conservatives….. Despite BILLIONS being spent by the Oligarchs, the GOP will lose big time in 2016 as Americans realize that they have been lied to big time by the Conservatives… Incidentally, who profited big time by having millions of American Middle Class Labor jobs shipped overseas? The Ultra Wealthy Captains of Industry!…
Really is simple….. Go back and look up the promises made by the Conservatives and you will find that just the opposite happened, going clear back to Reagan!… :( Hint: Start with “Trickle Down Economics”… Yea, that was a real success for the Middle Class, right?… NOT!.. :(
We would find ourselves with the first President in history that can’t have a security clearance. Doubtful. Your bench is mighty lean Mike. It’s way too early to know who will be elected. Jim
Got no idea what you are talking about there Jim….. Perhaps you could enlighten, aye?
All the benefits of Reagan’s policies high durring the Clinton Presidency! He got all the credit for record prosperity and Reagan got demonized!
Reagan did not do squat! Go study your history at any responsible site….. The rally in the stock market was brought by Fed Chairman Paul Volcker who stopped inflation by raising Fed rates, then lowering them. He was appointed by Carter and Reagan benefited from those policies that he had NOTHING to do with….. If you examine Reagan’s Executive Orders you will see how he set in motion the policies that crushed the Middle Class
I THINK you forgot to mention that all those wonderful benefits were paid by the hardworking taxpayers of your state that union didn’t pay a penny nor did the university it was all the taxpayers that paid for those wonderful state benefits …. HOW QUICK YOU FORGET
AND LOOK AT OBAMAS PROMISES his words were lets someone who knows how to run a country run it ( he forgot to mention what he meant was to run it into the ground ) OBAMA promised 6% or more growth every year, that he was in office another complete fabrication from a liberal liar cmon mickey what happened to all that GDP growth he promised …………..on wait I know I know…………… its Bushes fault and you know what the problem is mickey s. is with liberal politicians they lie to as many people will listen. im sure you fell for OBAMAS LIES as soon as he promised a unicorn in every pot
You apparently were not invested from March 2009 until November 2014…. to bad you got hoodwinked by the Conservative Screamers….. Doesn’t that make you mad? It wasn’t the Progressive Liberals that lied to you…..
Yes mike,who would thought Bush and Obama got a second term in office,I never?
Hey Mike — To raise rates or not — it doesn’t really matter. Even if Yellen stands pat, it’s my belief we are already in a bear market. So conservative investors (especially) would be wise to follow your good advice Mike to “lighten up dramatically” on short-term rallies.
The financial pundits may convincingly argue for a myriad of reasons why the Fed must (and will) raise rates now; and that the markets can absorb it. But perhaps they conveniently forget that history shows the Fed has never raised rates while the 30-day Fed Funds Futures has been as low as today’s closing 25% implied probability. The pundits also forget that the market really has done the Fed’s job in raising interest rates. You see, the Fed, by not raising rates for so long, has effectively been in a 7-year loosening policy. And the talking heads don’t mention that the world is drowning in debt and are hanging in there by a thread. So if Yellen does indeed raise rates this week, you can probably expect the markets to react very violently. Not only will we be in a bear market, but we could very well find ourselves in the midst of a super crash.
There is no motivation for China to ruin the US economy. They will obviously seek to gain competitive advantage. That is the root of business. Obviously it is not in their interest to destroy a trading partner or to antagonize a country with the largest military in the world; a country that has shown an aggressive tendency to use that military. To the credit of the Chinese, they are engaged is long term strategies while the West is focused on short term tactics. If you want some real insight into the Chinese mind set read the book, “1424”. They are now pursuing the exact same strategy that they successfully enacted in the 1400’s before the Mandarin Revolution and their great “Look Inward”.
Immigration, migration occurs today for many of the reasons as always: economic, government corruption, lack of peace, basically for a better place to live, and quality of life. These migrants going to Europe has nothing to do with overpopulation, or lack of resources, as this is an old problem with a long history of conflicts. So long as some benefit (those with power/influence), or there’s money to be made by conflict, don’t be surprised if this kind of problem continues… Unfortunately, many who had nothing to do with these outcomes, will be negatively impacted..
Mike, it truly doesn’t matter about conservatives vs, progressives or Republicans vs. Democrats, the handwriting is already on the wall… And I would say you can take this to the bank assuming there will be one remaining…
As of today the Fed’s balance sheet has ballooned to $4.5 trillion, yet its total capital has collapsed to just 1.3% of total assets and is falling fast. Think of it like it’s the Fed’s “net worthâ€.
The Fed is just like us hillbillies here in Texas and every business world-wide, we need to have a positive net worth (the value of the Fed’s assets must exceed the Fed’s liabilities).
The Fed’s liabilities are all the trillions of dollars in currency units that they’ve created, known as ‘Federal Reserve Notes’ and the Fed’s assets are the US government bonds.
In years past the Fed has created trillions of Federal Reserve notes (otherwise known as dollars and used those same dollars to buy US government bonds… Now ain’t that sweet…?
The Fed conjured new money out of thin air and they also created about $3.5 trillion worth of liabilities, the $3.5 trillion worth of bonds they purchased.
So in the big scheme of things, the Fed’s “net worth†hardly budged and as a percentage of their total assets, and in reality their net worth tanked didn’t it…?
That is what we know as leveraging… And by any stretch of the imagination, the Fed is dangerously over leveraged.
I believe something interesting is about to happen because the rule of bonds is absolute; bond prices and interest rates change inversely to each other, so we will always see when interest rates go up, bond prices go down.
So, here you go, the Fed raises interest rates and the value of their existing bonds goes down… That’s about like cutting your own throat, don’t you think…?
Okay, the Fed is sitting on $4.5T of existing bonds, which they purchased when interest rates were basically zero due to their cunning and crafty thinking.
So what happens if the Fed raises rates…? Whoa… The market value of their entire bond portfolio will basically evaporate… Well , not really, but no one will buy them when they can buy bonds at a higher rate… So they then will have to discount them further in order to free up dollars to maneuver with.
Therefore, given the extremely squeaky thin capital the Fed has in reserve, they will only have enough dollars (about 1.3%) in their bonds before they are insolvent…!
So if the Fed raises rates the Federal Reserve will be creating its own insolvency.
Result, the Fed is so over-leveraged it has no “policy tools†left to combat a major crisis.
The Fed has no maneuvering room… If they can’t lower interest rates because they’re already at zero basically, and if they raise interest rates they are suddenly insolvent…!
Hmmm… and now we are being told the U.S. is a safe haven for money…? I believe the facts and data tells a completely different story…!!!!!
So, if the U.S. isn’t a safe haven (because the Fed isn’t a safe haven), Japan isn’t, China isn’t, Europe isn’t, and even Switzerland isn’t (due to already negative interest)…
I see a world which will be confronting the fact the US dollar is kaput and there is unquestionably no safe haven anywhere in any financial system… I believe the term is collapse…!
in 2019 all those high interest paying bonds come due that OBAMA has created $$$ 3.6 trillion to be exact , were paying over 500 billion interest on those loans to the Chinese and Japanese and MIKE S. likes to keep saying BARACK OBAMA brought us back from the brink only to throw us over the edge.
Were do you get your information? From Limphog? You might want to consider on of the real financial papers…. Geeezzz!… :(
WHERE DO YOU GET YOURS FROM MIKEY S ……. LET ME GUESS MSNBC
I live in Europe Mike and all these problems have been created by us and you in the USA .
Just a few examples . You kicked Iraq out of Kuwait : quite right as Iraq attempted to invade it .Then you decided to invade , wrongly , Iraq and started the instability in the region . Europe joined in.
Now Europe , led by the UK , bombed Libya and Tunisia creating further chaos and instability . Then the USA provide Al Qaeda with arms to fight Assad when you had previously been fighting them
Then the USA arranged the overthrow of the Ukraine government and wondered why the north of the country rebelled and asked for protection from Russia when the puppet government started to bomb them . Remember Nuland caught saying “F..k Europe” when they were against it .? Yes it is us that caused this chaos and continue to do so.
The markets move in expansion and retraction. Under Greenspan the Fed held the belief that they could stave off indefinitely the retraction. From my viewpoint the Fed has continued this belief and has been able to DELAY the inevitable, but when those retractions come they become far worse than they would have been if they had occurred in the natural order of things. QE on top of QE and zero interest rates have delayed the inevitable, but the Fed has emptied it’s storehouse. Fasten your seat belts!
Stopping a Conservative Caused Stock Market Crash and Depression is VERY expensive…. Same thing happened during FDR’s Administration… I better understand your views not that you’ve explained to me that you live in Texas, the state of oil, cattle and little else…..Interesting how BOTH of those commodities are falling in price….. Do you know what happen to much to Texas in the 1930’s….. We are NOT going to collapse, we are simple going to have another smaller sell off, much like 1937 when the Conservatives meddled along with a reduction in deficit spending to see if the economy was strong enough…. Incidentally, Greenspan thought it was smart to REMOVE Glasss-Steagall….. I believe that pretty well explains Greenspan’s competence, aye?
And now a word from the DNC for what it’s worth…
And now another ad from your liberal progressive party HILLERY FOR PRISON 2016 HILLERY FOR PRISON 2016 omg another typo mistake we meant president hurry lets wipe the server clean (like with a rag ) yes before anybody finds out
Right on Roger… The jig is up… Larry says October 7… We shall see what the Fed tries to pull out of their hat now that they’ve used up all their rabbits…!
You fellas might want to look up Larry’s record before you begin holding your breath for October 7th……
I just have to agree with most if not all the comment above on this excellent WR website. They are as knowledgable about the REAL LIFE as WF @ financial matters.
Mike; As we appear to be on the verge a bear market, how can we little investors hedge the value in our homes? Has your company looked at inverse ETF’s as a possible method of protection for the downside? Thanks.
Massive migration of Muslims to Europe is invasion of ISIS terrorist and radical Muslims. allowing these terrorist to convince Muslims already in Europe to kill European non Muslims. Only 17% of migrants are children (refugees don’t leave children behind), and the rest of 80,000 are men. Many are not Syrians and some have been found to be on terrorists lists.
Obama is sending money to ISIS. O wants to open USA to10,000 ISIS terrorists disguised as Syrian refugees.
Our Congress will let him, because Congressmen are afraid of losing their jobs.
Simply looking at the photos of the migrants it is obvious there are but a very small percentage of women, children, and older men… The vast majority are younger men (16 to 30) who are ready and willing to behead foolish progressive idiots in Europe and the U.S.
There are too many American’s receiving freebees from all of the governments at all levels… They will all be re-elected and have very little risk of losing their cushy jobs…!
American needs a hard-ass leader without political ties and adverse to political correctness…
I agree 100% with you dr. don
TONIGHT IT’S GOING TO BE A STREET FIGHT WITH SMOKE AND MIRRORS…
The stakes for the debate tonight are infinitely higher than any previous election.
American’s ignorance has left them unable to recognize presidential politics is playing out like professional wrestling with all its smoke and mirrors.
Tonight’s debate will have lots of smoke and it will be real smoke and it will be in earnest.
Will this smoke start a fire…?
A fire that has the potential to burn what remains of this country and its few existing freedoms to the ground like the current administration has done…?
The RNC establishment’s plan for this evening will be to attack Trump and it will be lead-off by all the single digit losers.
The RNC is already pushing Carson as the man… Whether his blackness has anything to do with it is unknown, nonetheless I believe it is very likely…
However, look out, there might be a bait-and-switch scam in the last round before the bell sounds…!
The RNC storyline is Carson and Fiorina the two outsiders, one with a dismal record as far as business acumen and the other who is a gentle healer with no business acumen and even less political savvy…
The establishment is very afraid of Trump because he has captured the indignation, temperament, disposition, and temper of Americans…
However, the Bush gang has no shortage of dirty tricks…
So get lots of popcorn, some soothing drinks, and even a tranquilizing sedative just in case, and watch the smoke and mirrors while the clowns dazzle and entertain…
It promises to be a street fight with at least six candidates that have nothing to lose…!
This has been a wonderful blog to read today. We’ve got the Zodiac out and shining, the Fed still chasing their tail, ISIS in a Trojan Horse, Biblical forecasts, debating the Debate, and Mike S still running in his hamster cage; leaves me with nothing to write about.
Gee Will,
Have you ever had anything useful to write about… I looked back several letters and could find nothing… Probably my fault as a Progressive Liberal, aye?…
YEA YOU ARE RIGHT MIKE it is your fault as a progressive liberal you voted for OBAMA TWICE it sure didn’t take him long to mess this country up did it . I GUESS THAT WHAT YOU GET WHEN YOU LEAD FROM BEHIND
Oh ya,
You’re the guy that believed the Right Wing Screamers and missed the rally from 2009 to November 2014, because that Democratic “Kenyan” was saving the economy after
it was blown up under Cheney/bush and the Majority GOP Congress…. You really ought to turn off the radio and pick up a history and an economics book… I’m assuming that you slept through both subjects in high school, aye?