We are headed way into a saber tooth top which is 5 years into this bull market. Every 5-6 years the stock market corrects and we are nearing a top. When it occurs no one knows but my strategy is to continue downsizing my riskier assets as we speak. Bear markets take it all down,,,the baby with the bathwater and at this point any negative news impact on the economy will cause a 15-20% correction triggering the next 12 month bear market. Markets always take your money back unless you are not greedy and savvy. Markets will always correct when debt is high, stocks are hitting 52 week highs every other week, most people are bullish on the market and money flows are increasing. This is what is currently happening and I will not lose a dime on this next bear. I have already been through 2 that hurt me pretty bad. Good luck to all.
I would tend to agree with you bearnobull, except now we know the central banks are literally funneling newly created fiat into the gobal equity markets. It is kind of tough for stocks to drop when you have an entity with unlimited dry powder buying everything up. This is unprecedented really. At some point though, they will sacrifice the market and renew their focus on protecting the dollar. When that is is up to speculation? I'm now thinking it won't be until much later in the year or even in 2015 when they actually do start raising rates.
I agree but with a different spin. Brokers use banks to backup margin accounts. I have always assumed when margin debt reaches a certain threshold the investment banks trigger corrections. JMHO.
Sentiment: Strong Buy
bear I missed lots of this last up ,because , was using some of your reasoning, ah America's Fed can't quit printing, & have backed themselves into a small corner, there's tons of cash floating around America with only 1 place to make money, sounds like you have some stops placed, your smart, I gave you a thumbs up, cash is always king after bottom falls out & dust settles!
The market can sell off on any given day, and that is why I always keep a little cash on hand. That said, market tops are associated with high valuations, earnings that are topping out, high level of retail investment participation, and when everyone is bullish. For sure, there are some stocks that are richly valued, and one is smart to rotate out, or pare their position on those. At this point, its a stock pickers market, and I believe any selloff at this point will be bought, and I would add to LINE.
The Denisovan's of the tin foil head gear has spoken. ;)
Been six years of investors believing a normal post war economic expansion will begin. Then Obama does another foolish irrational passive aggressive political farce and uncertainty kills investment.
America does not and has not under Obama had the small business creation which enabled our vastly superior economic growth compared to old declining and self absorbed Europe.
Sadly two more years of what is normal for Obamanomics.