So basically the new DOW high...

[Corruptbuddha]

...is as artificial as plastic flowers.

http://money.cnn.com/video/investing/2013/03/05/investing-dow-record-high-stock-market.cnnmoney/index.html


I suppose the question is, how long can the Fed keep inflating it?

 

[Bo-4]

Ali Velshi is a Gloomer of the highest order. If the guy were any more Gloomy.. he'd be WorldlyMrB. ;-)

 

[Corruptbuddha]

So, you disagree that pumping $85 billion has nothing to do with the current market highs?

 

[Bo-4]

So, you disagree that pumping $85 billion has nothing to do with the current market highs?

I think that the Fed has a viable roll in making strategic moves to get the economy going.

That's kind of their job.

 

[Corruptbuddha]

By over-inflating the stock markets with monopoly money?

I'm not too sure about that.

 

[Bo-4]

By over-inflating the stock markets with monopoly money?

I'm not too sure about that.

So let's have your prediction CB. I mean, there's no question that corporate profits are through the roof. But if you blame the Fed, when will the Wall Street house of cards next come crashing down below 1200?

 

[Corruptbuddha]

Beats me. But I know it will.

When I was a kid, around 16-17, my brother and I went to a party. On the surface it looked like any other party we had attended in which a good time was had by all. But for some reason...this one just didn't 'feel' right. My gut told me something was amiss and to get my ass out of there. Which I did. A couple of hours later, a gunfight broke out and three people were killed.

My gut tells me this 'record high' is like that party. Something is wrong. Something is about to go down. And I want no part of it.

I always listen to my gut.

 

[gabriel]

so buy PUTS

 

[connorbug]

...is as artificial as plastic flowers.

http://money.cnn.com/video/investing/2013/03/05/investing-dow-record-high-stock-market.cnnmoney/index.html


I suppose the question is, how long can the Fed keep inflating it?

Right now the inflation associated with QE is reflected in inflated asset prices. People are happy about that, right? Well, eventually it will rear its head in overall inflation and when it does, the Fed will have to reverse course, sell the assets and/or raise interest rates and when they do, asset prices will tumble.

 

[Bo-4]

Beats me. But I know it will.

When I was a kid, around 16-17, my brother and I went to a party. On the surface it looked like any other party we had attended in which a good time was had by all. But for some reason...this one just didn't 'feel' right. My gut told me something was amiss and to get my ass out of there. Which I did. A couple of hours later, a gunfight broke out and three people were killed.

My gut tells me this 'record high' is like that party. Something is wrong. Something is about to go down. And I want no part of it.

I always listen to my gut.

Yikes, that's quite a story. One piece of advice.. sell your gold, it's far more likely to take a dump than the blue chips in next few years!

 

[Bo-4]

Right now the inflation associated with QE is reflected in inflated asset prices. People are happy about that, right? Well, eventually it will rear its head in overall inflation and when it does, the Fed will have to reverse course, sell the assets and/or raise interest rates and when they do, asset prices will tumble.

Pop quiz: What were interest rates under Bush during the previous record high in October of 2007?

 

[gabriel]

whats the PE of the dow?

 

[Corruptbuddha]

No way.

My gut tells me to stay away...I stay away.

 

[Corruptbuddha]

The gold was never bought as an investment. It's insurance, nothing more.

And I'll bet you dollars to Krugerrands that you're wrong.

But, hey...if you like to gamble with your future...be my guest.

 

[Cotton2226]

By over-inflating the stock markets with monopoly money?

I'm not too sure about that.

what would you have done?

 

[gabriel]

so your trusted gut cant tell you if the market is gonna rise or fall, it just tells you to absent yourself?? lol. you need rolaids!!

 

[Cotton2226]

In 2008 was when to load up on the stock market...

 

[Corruptbuddha]

If you have so much faith in it, be my guest.

 

[gabriel]

If you have so much faith in it, be my guest.

I hardly need someone like you to give me permission to prosper

 

[Corruptbuddha]

I wasn't giving you permission.

Just sympathy.