is the stock market bubbling right now?

dank smoker420

Well-Known Member
and is it going to pop soon? there are many economists that believe there is going to be a recession or even depression since the fed keeps trying to make the economy look good rather than make it actually good. what do you guys think?


I am personally scared for the future. i am a college student that has alot to learn about the monetary system and i also have a long life ahead of me in the country that seems pretty doomed. i am also scared that alot of people my age are not awake to what is happening in the monetary system and even the government.
 

Doer

Well-Known Member
I prefer to think a correction in the big indexes are due, but when to short those SPYDRs or DIAs? I'm just glad I didn't.

Options can only provide so much cover, till the time value catches up.

So, I say on the chart side yes, correction is due, but when I look a the reality of foreign money pouring back in; the entire fiscal cliff was a sham, $85B was nothing; closing the White house tours looked punk.

Faith is restored....if we have all this natural gas.

So, they don't tell us, but I do see big European companies building Natural Gas recovery operations here in the US. So, all in all. It looks good.

OTH, it is the beginning of the North Hemi fighting season. (tm) And War will crash a market faster than a Jinga stack. (another time to put all the money in after that crash)

So, why worry. Dollar cost average into dividend paying stocks and re-invest the dividends. Try for 6 month dividends payouts.

Get Coke-a-Cola and a good wide brush of others. Do some study. Just get a few shares, at first. Get the ball rolling. Even buy straight for from the company for no commission. I just use Charles Schwab to make it easy and automatic.

Now, make this an IRA, and add bits of your disposable income constantly and regularly for years.

So, don't worry. Sit back for 6 months, a year, and see what happens.

When the market is high, Coke pays a dividend on the price of the stock. Nice good. Then the stock heads down, the reinvest occurs. More Coke gets bought, automatically at a low price with the high dividend payout. The investors in these stable payers do that shifting of the prices for us. We just ride along.

If you wonder how people get rich with no worry, this is it. It takes patience, diligence (your money) but no worry. It brings information and, to understand it, more intelligence.

And the ladies will love you for it. :)
 

fb360

Active Member
Its hard to say exactly how much the market is bubbling and is going to pop. However, with certainty, we can claim that the market is not exactly correlating to the economy due to borrowing and money printing. In fact we can go so far to say that we know for 100% that some companies and looking good due to bailouts and new money being printed and introduced into the market.

With that being said, I'm still going to invest in the market and dont expect it to crash in an instant fashion. Just know that for sure, our economy is not being correctly represented by the stock market; debt is off the charts, while mainting high levels of money printing (devaluation of the dollar), as well as inflation.
 

BarnBuster

Virtually Unknown Member
... learn about the monetary system....
Market(s) are always going to have volatility and corrections, always. Is the market going up or down in the next year? Don't have a clue. Is the market going to be higher when you retire in 40 years? Good probability. I'd suggest starting your education with the series of books written by Ric Edleman and then the following list. Take the list to a econ prof where you're going to school, tell him you're interested in learning about investing and the market and see what he recommends for reading. These are my favorites, most considered classics and a must for serious investors.

Common Sense On Mutual Funds" by John Bogle
Common Stocks And Uncommon Profits" (1950) by Philip Fisher
How To Make Money In Stocks" (2003, 3rd ed.) by William J. O'Neil
Irrational Exuberance" by Robert J. Shiller
Learn To Earn" (1995), "One Up On Wall Street" (1989) or "Beating The Street" (1994) by Peter Lynch
Rich Dad Poor Dad" (1997) by Robert T. Kiyosaki
Stocks For The Long Run" by Jeremy Siegel
The Essays Of Warren Buffett: Lessons For Corporate America" (2001) by Warren Buffett and Lawrence Cunningham

The Intelligent Investor" by Benjamin Graham
A Random Walk Down Wall Street Burton G. Malkiel
The Four Pillars of Investing William Bernstein
Margin of Safety by Seth Klarman

You Can Be a Stock Market Genius by Joel Greenblatt

Buffett: The Making of an American Capitalist by Roger Lowenstein

 

Doer

Well-Known Member
Yes, I've read all the books. These are actually a good collection of very common sense. Not advice. Common sense.

I can break even in Forex, and covered calls, and a lot of things I've tried. And that is a raw struggle with myself just to get that.

These markets don't reflect the state of our economy, it represent the brightness of the Casino Lights! It's the rosy promise and how that fails. The underlying security is really not a part except what it somehow represents at the time, to a bunch of people that do it for a living the Market.

I get lost in the books, except the ones that stress these basic principles, here in this list.

I do believe is it a random walk for any stock that doesn't pay dividends....more like betting. Start saving NOW.

I do believe these markets have two very different purposes. To raise capital or in the case of Commodities, to take set price positions for future deliveries. The farmers' hedge. All this needs a lot of players, money in play, liquidity it's called.

That brings us in. We are not investing. We are speculating. We may think that a long term growth fund, or bare option fun is for us. That's the self control. Hint. We don't have much.

So, Fact 2. All markets that are liquid are designed to take your money. Non-liquid markets like real estate are a bit different.

Panic the stops, and all sorts of tricks go on every day, if you want to play with the big boys. So, I can keep my pants with the big boys now. But, not for long. Little mistakes, confidence gets shafted. You will lose. That's why there are so many writers and not many that can actually do it.

So, 1 and 2 are the same. It will take your money, in as little as, no time at all. I testify. It is suppose to do that. A zero sum game. Lots of little loses makes big wins for a few. Not worth it. And the few grand I've lost fighting back to some resemblance of breaking even, is worth the lesson.

So, you go in and take their money a bit at a time and guard you own like crazy.Everyone one like me who plays crazy defense....well I've pulled everything back into cash several times in the last 10 years. Spread out the money and play safe, I say. Crazy Defense and Capital Preservation is the real man's game.
 
Top