Stock market’s down again…
…and this time they say it’s about trouble with the French banks, which hold a lot of European debt.
My opinion? The market is very volatile, and each explanation is only part of the explanation. The fuller explanation is uncertainty and fear—some of it highly justified—breeding more uncertainty and fear.
I would not be surprised if the market went up again towards the end of the day. I would not be surprised if it plummeted further. No one should be surprised. I learned long ago to try to block out the ups and downs of the market, or they would drive me mad.
each explanation is not part of the wh ole explana tion
its idiots trying to see whether the un derwear will sti ck to the wall… ie… say anything to get little people to prop things up so big people can play games
its trying to pretend that you can exam ine an eleph ant with a je welers loupe…
why not a list of 40 reasons all at one time?
the public then would see a big pict ure…
and where we are going.. and start to see things like ab ortion with soc ial engineering is eug enics… wel fare without limits is a soc ial bo mb…
and even worse for the ga mes persons, start noticing the groups that got us here EACH doing a small part to which no one can bl ame them unless they look
like who chan ed the idea in soc iety about welfare being bad, to welfare being soc ially ok?
feminism… or else how do you fund all those single mothers liberation from family (husband) and replace him with the states money while kicking him out of the home?
and who got kicked out? oh… black men mostly.. to which they started to make gangs, and express neo black culture as handed to them by whom? oh the bla and panthers through rap music… or do we forget that rap was created by the kids of founding people of those organizations?
and who started the conci ousness raising? feminists
who started applying that to race and having studies courses? you know, courses where cornell west, and cohn and others got to repeat all the narzi ideas..
s ocial justi ce, control of busine ss through licen sing and taxes, dis parate im pact argu ments, prote cted classes/volk, euge nics, me dical co ntrol, and nati onalizi ng key indust ries, destru ction of family, targ eting jews through white ma les, positive Christ ianity and LOTS more.
Basi cally we held variations on nazi ideology and then made it mandi tory our kids attended.
now com es what comes from that..
and the stock market is a forward looking vehicle
so its down because the societies for which the basis of such credit and such, no longer exists…
culture
watch little house on the prarie…
the culture that would scrimp and save and work hard before play was earned, is dead.
the diamond and gemsto ne industry o perates on hands hakes. they say its fragile.. but thats not true… its actually VERY strong… as any violators are exp unged forever… by being able to do a 30 million deal on a handshake, they save a lot on ex penses…
the only reason a person in that indu stry can walk in, and get something and not exchan ge cash, sign a contract or get rece ipts is because of the CU LTURE
a society whose culture wars have left it operationally like dresden.. CANT pay back its stuff.
its intellegence was redistributed, its smartest are disenfracn hised for ra ce and pud enda superiority
the delusion that common people are under with personal versions of this or that, is not a delusion that people who are effective in the world share. unless they are effective in working delusions… like ideology warriors..
but the rest, their unorganized individulist entrepreneures and so forth.. they DO NOT see it that way… they see it as it is, and just shut their mouths.
right now..
we are COLLAPSING as i said 5 years ago
its too late to move to high ground, it cant be stopped
and this time, other states are going to jump in and dog pile on the rabbit.
if we cant borrow, we cant defend ourselves.
an army moves on its stomach is true
but you provide meals by credits.
the market is making LOTS of sense IF you stop treating everyting as simplfied singularities.
the market is made up of large investors, small investors, day traders, money market managers and such.
so what then would explain this?
one, note that if you sell this year and buy back, you reset the capital gains…
two, if you start to sell, others sell, you buy back at a discount…
those two alone are enough to make things very volitile any time an excuse is set to allow the game to work
the rest ommitted as the spam filter makes communicaiton impossible from time to time.
too convenient sometimes i think…
I just started reading Mark Steyn’s new book “After America: Get Ready for Armageddon”. So far I like the book a lot. But, I don’t like what he is describing may happen here in the good ole USA. Some of which may be happening to the stock market recently.
We.are.about.to.pay.the.piper.
UNLESS…we get serious about how we run this place.
Anyone who bought lots of gold and silver last year is having a good week.
Mr Frank, I have a friend who’s a bit on the odd side that began an obsession of buying lots of gold ten years ago. I even poked a little fun at him about his paranoia driven hobby. I now realise i was the odd one.
You are correct Neo, markets will be volatile for many days to come. There is no certainty, there are no truly safe havens (except perhaps precious metals and farm land), and there is no credible leadership.
Mr. Frank,
I started buying silver when it was just over $9, I stopped making monthly purchases when it hit $35. I bought in small amounts typically $100 or less, and I bought physical silver in the form of rounds, not paper. When I started this investment regime my wife thought I was a bit daft and the money would be better placed in the DJIA, now I seem wise 🙂 because it has been a good investment indeed.
Gold shoots past record $1,800 an ounce
The price of gold surpassed $1,800 an ounce Wednesday for the first time as investors pulled their money out of stocks and snapped up precious metals contracts.
Dow
10,719.94 / -519.83 (-4.62%)
I ought a combination of gold and silver (ETFs for now…will switch to physical when things get REALLY bad) some time ago.
Swiss francs are looking good too…ETF symbol = FXF.
Volatility is really not the major issue for me. I liken it to driving a car: volatility is weaving back and forth, and most drunks reach their destination OK. But the road chosen largely determines that, and some of these drunks wind up in CO instead of Chicago.
The MSM loves volatility, but steadfastly ignores our direction.
We are in the the trunk; the drunk driver and his drunk buddies are up front, hustling us all down the road, hitting mailboxes and potholes, sideswiping cars. But we can pry the trunk open and bail, albeit not without some injury. Better injured than dead.
The Swiss franc is up 15% in three weeks. The Euro has a terrible prognosis for its very survival. It is likely stll a good time to buy silver in view of the historical silver-gold ratio. There is no substitute now for Au & Ag.
Tex,
It’s reported that the ETF’s have more paper inventory than actual metal. Movement to physical metal makes sense before the excrement hits the ventilator.
Mr. Frank,
I take your point and I’m being very watchful about that, but I’m a fairly active trader and I need more flexibility than physical gold and silver provide now.
texexec,
I second Mr. Frank’s sentiments. Be aware that even physical precious metals can be ‘legally’ seized by the federales: http://tinyurl.com/598ljk
The present day persons of ill-repute in DC are bigger and more desperate scoundrels than FDR’s gang in 1933. My unsolicited advice is go physical to the maximum extent possible and keep it in your own safe with the combination protected by Messrs. Smith & Wesson.
texexec,
The Swiss franc and the Canadian & Australian dollars are the best currency havens that I know of. Any other suggestions? Singapore perhaps?
Mr. Market is having bouts of anxiety. The Bernank tried to give him some anti-anxiety medicine yesterday but it turned out it was not the med that Mr. Market wanted. Mr. Market likes QE. It calms his nerves, gives him a feeling of security. Alas, the Bernank didn’t announce QE-3 and the fit hit the shan in France. Oh me, oh my! The truth is that, economically, things are not much different than they were two months ago. The economy has been softening since April, and Europe has been on life support since last year. They keep putting lipstick on the pig and hope that Mr. Market will like the new look. He’s a hard man to please. Right now he wants SAFETY! Treasury rates are near historic lows because the Bernank announced no interest rate increases for two years. Buy a 10 year bond and make 2.19%. Sounds good when money markets are paying next to nothing and stocks are in a nosedive. But there will come a reckoning there eventually. Just not tomorrow or next week.
A portion of my income comes from investments. Since 2008 I have been a short term trader by necessity. (Who would have thunk it?? I was a long term investor for so many years. 80s, 90s, and 2000-08.) I try to trade the trends. QE-2 goosed the commodities and the Dow. I made some decent returns there. I’ve been in gold, silver and Swiss Francs for a while, but they are as volatile and unpredictable as anything you can own in the market. Who knows what gold is worth? No one. It’s price is all based on fear and hucksterism. (Notice all those gold commercials? If it’s such a good buy, why are they selling it?) A few krugerands and a bag of real silver coins in the safe are good insurance for a break down of the system, but they are not “investments.” The ETFs are very liquid – they’re the place to be. I saw this movie back in 1979-80. In fact, my bag of silver coins is a memento of that time.
Will it settle down or is this the end of our system as we know it? No seer am I, but I’m betting on the USA eventually getting a grip and coming back better and stronger for having had to endure tough times.
Silver is not the best of investments when gold runs so high.
from wiki:
The metal is primarily produced through electrolytic copper refining, gold, nickel and zinc refining, and by application of the Parkes process on lead metal obtained from lead ores that contain small amounts of silver.
when gold runs high relative to its prior standing, silver tracks for a short while then diverges because of the increase in gold mining producing silver. the more rare the gold the more rock, the more other ores relative to gold they remove to offset as much as they can.
same with other high demand metals, as silver comes from mining them too…
in fact most silver comes this way, not from silver mines…
“Will it settle down or is this the end of our system as we know it? No seer am I, but I’m betting on the USA eventually getting a grip and coming back better and stronger for having had to endure tough times.”
No one knows for sure, but I suggest we are not the same society that weathered the depression of the 1930s and the war of the 1940s. Today we are mostly an urban society incapable of putting food on the table via sweat and calluses. (How many people know how to grow and preserve food? 5%, 10%, 20%? Certainly no more than 20%.) Today, we are a society that for 40+ years has demanded entitlements. We no longer value hard earned self-respect, we instead casually grant ‘self-esteem’. After 40+ years of handouts, how many today are willing to labor to put bread on the table versus those who expect others to provide the bread? IMO, as a society, we are ill prepared to endure tough times.
Please note I am not ranting at you…. I’m blowing off steam.
Artfldr,
The best attribute of silver over gold is that silver has far more industrial use. I agree that silver is not gold, but silver presently is undervalued.
Parker:
The Japanese Yen has been doing well for some time now but has been more volatile than the Swiss franc has been. The Japanese central bank just tried to intervene to drop the yen vs the US dollar but it didn’t work – the yen is now back up again.
Silver is getting a bit “jumpy” for my taste to be used as a long term hold. I made more money on it than with gold the last couple of years but got stopped out twice recently.
I agree that a bag of silver coins is good insurance for possible bad bad and maybe violent times ahead. I live in a gated community out in the country and thoughts are beginning to run through my mind of organizing our community to develop a community garden and maybe create a small herd of goats for food when/if things get really bad.
We might need to implement security measures too.
If things get bad, I really wouldn’t wanna be in a large city.
We’ve lived through some bad before. In the 70s I was flying over Baltimore and Los Angeles as they burned. Laying over in hotels in Baltimore, D.C., Detroit, Phillie, Cleveland, even NYC with armed guards in the lobbies and security at the elevators making sure only guests got on. There was lots of survivalist literature and forecasts of civil authority breaking down. Didn’t happen then. I hope it won’t happen this time. Prepare for the worst, hope for the best.
“I agree that a bag of silver coins is good insurance for possible bad bad and maybe violent times ahead. I live in a gated community out in the country and thoughts are beginning to run through my mind of organizing our community to develop a community garden and maybe create a small herd of goats for food when/if things get really bad.”
About 8 years ago my immediate neighbors and I formed a gardening co-op. We grow heirloom seeds and trade veggies, beans, squash, and corn as our gardens progress through the growing season. We gather together to preserve our produce (canning & drying). Many of us have chickens (surreptitiously due to city ordinances largely ignored). We are a pretty tight knit group of young families and oldsters. If anyone can survive tough times, we will.
BTW, I see my silver rounds as a means to bride post-collapse government thugs ( “These aren’t the droids you’re looking for…”) instead of shooting them and dragging their carcasses somewhere I can safely bury them for alas I have no hogs. 😉
Stocks are currently pegged to fake money or fiat currency.
Do what George Soros does to get money. Buy into or out of a currency via precious metals like gold/silver and use that as a way to preserve your money when a nation’s currency is going into hyper inflation.
Then buy back in when the hyperinflation turns into hyper deflation.