Stock sell off yesterday continues today

The funny thing, Jake, is that the stock market doesn't pay all that much attention to Trump, and it didn't pay that much attention to Obama, either. BUT, the stock market has its attention positively RIVETED on the Federal Reserve System! The stock market is slavishly addicted to endless supplies of ultra-CHEEP money, loaned at near-zero rates. Presidents? In the eyes of hegemonic combines like enormous central banks, "presidents" of either political party are little more than 'rabbit turds'....

Think: the Fed was quite able to tell both "W" Bush and Barack Obama exactly what to do, and so far, the Fed has made it clear that it doesn't care what Donald Trump thinks about what it does....

So, as long as Wall Street is able to operate in this kind of artificial economic delirium, they're happy! Earnings, balance-of-trade, national debt, strength of the dollar, etc., mean far less to stock market gamblers than the paramount concern of whether or not the Fed is going to keep on supplying them with the financial 'heroin' they desperately crave on an unending basis....

Afterthought: all these 'central banks', including the European Central Bank, the Bank of England, the Bank of Japan, etc., use essentially the same kind of addictive methodology. Only two major countries exist anymore in which central banks don't run everything of any real importance in the economy -- Russia, and China....

 

how long can the fed use heroin before it overdoses?

 

Thank heavens for the fed reserve and the inability of the extreme right and libertarian inability to maneuver it.

 

Yeah thank heaven someone can enrich the richest men in the world

 

I started with a $250.00 investment in Exxon, now ExxonMobil over thirty years ago. You didn't have to have a broker -- you could buy small amounts direct from the company. I used the dividends to buy more stock, income averaging every quarter, and would occasionally throw in another $250. I was a blue collar machinist.

Scoot, my boss, educated me that I couldn't afford not to be in the market. He has passed now, but nine children split a very substantial estate because he invested a little bit here, a little bit there all his life. A little sacrifice goes a long ways for the patient small investor.

With overtime I made more than Scoot. He never would have accumulated wealth on just his salary -- although with nine kids his better benefits paid off very well.

 

And how do you get there, by having weeks of gains, even setting a modern day record and you're bitchin' about. What kind of investor are you that doesn't like such good news. And BTW I hope you were buying when the market was so low, THAT'S how you make big gains, dollar cost averaging, any investor knows that.

 

A recovery is good news, while ignoring the losses before it caused by the administration is creating fake news.

 

That's all you have to do, I started investing when I was 23 years old, the magic of compounding and dollar cost averaging. People were whining about the market last year when in fact smart investors continued to buy if not increase their purchases. The 401k is one of the best things government ever started, you don't even miss money after a while and you just let it grow and be reinvested. Yes you might not spend the same amount of money as your friends and family and neighbors, buy you will be wealthier than they and not be so jealous of people who do have wealth and have to use the government to try and get some of their wealth for you.

 

Who knows how long the Fed's big "opium den" can keep on cranking out the 'smoke'...? They've been gaining control over the entire economy for over 20 years, but they staged their total coup starting in summer of 2007. I watched it happen, ever single day, starting about the second week of August when the Fed started smashing interest rates downward, even the demand for CASH was starting to become acute.

When the 'Great Recession' kicked into high-gear in 2008, the Fed (through its high-level operatives in the two different administrations) instructed first "W" Bush, and then later, Obama in exactly what they were going to do, not do, and told both of them to get out of the way and let the Fed dictate everything. Idiot Bush and Idiot Obama were only too happy to obey....

So, Idiot Bush spent his last year in office wandering around like a stunned deer-in-the-headlights. Idiot Obama took his orders to stand aside and run the Welfare Circus. Having never had even a real job in his entire life, Obama obviously understood nothing about economies anyway, so it was easy for him simply to be the Fed's "hand puppet" and play to the adoring crowds who wanted little more than something-for-nothing....

 

Er...

If a "long term" investor made their only investment right at the market peak, they're down two and a quarter percent for that thirteen months.

 

Er . . . think.

 

Er . . . Don't be retarded.

 

Er . . .

 

Er...

Nice view youse guys got!

 

Well, we agree on something. DCAing and buy and hold wins the game.

If you invested according to this strategy, I am sure you DCAd into the market during Obama's eight years? Did you praise Obama, though, for increasing your 401k balance?

 

Here is an interesting story about the world's worst investor:

https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

It doesn't matter if you only buy at the peaks -- if you never sell.

 

That's a good article. The poster that I replied to should read it.

Which brings up my error. I forgot about dividends. Makes it a wash.

 

Youse guys is right. I completely forgot about dividends. That would make that "long term" investor, pretty much, even.

 

Of course I did, what should I praise Obama for it happened in spite of his and the Democrat policies, the worst recovery in modern history.

 

Is it about the government?

 

Waited forever for it to increase. Now that Trump is president it went up 150K.

 

S&P 2681 when posted this, 2793 22 days later.

That's an annualized gain of 72%.

 

Been enjoying the ride so far this year to the full

My big tech holding (VITAX) is now up nearly 16% year-to-date.

Took a chance and added dough to that fund and a few others in the portfolio on Dec. 26 … just a day after that brutal Christmas Eve bottom

If I recall, the 26th was a pretty strong up-day for the market. I got lucky that it wasn't the beginning of a dreaded "dead cat bounce" off the low.

Anyway, strong starts like this typically signal more gains over the remaining ten months of the year.

Both March and April are historically good months for stocks, particularly in pre-election years.

But after this torrid start, it's probably only a matter of time till we get a significant pullback … or perhaps even a full-fledged correction.

As I always say to my fellow market participants … just make sure ya can find a chair when that music stops...

 

My point exactly

 

I predict DOW 30,000 by April.