By the narrowest of margins we have avoided falling below the May 28, 2014 higher low which was at 9.23. Yesterday, September 22 we closed at 9.27. It seems unlikely it will hold, but I suppose stranger things have happened. The falling knife has been the story lately for sure.
The strategy is to invest $200 a day while we are under $10 per share, with no further investing over 10. If we fall under $9, that will be upped to $300 per day, but no further investing above $9--and so forth, although I hope not much lower. The low for the bear market move was 8.41 on December 23, 2013--Merry Christmas :). Nobody wants to see that except the shorties. Who really knows? Eventually this war will end, but the smell a napalm has been pretty powerful stuff lately. As Fleck says, the funds are "puking" any holdings before the end of the third quarter, so any rally may be met with more selling, although i can't imagine there is much left to "puke."
"The Fed made another unusual move on Friday when it announced that it
was forming an internal committee to be headed by Vice Chairman
Stanley Fischer to oversee the work of its Office of Financial
Stability Policy and Research. Fed Chair Janet Yellen already sits on
the Financial Stability Oversight Council (FSOC) which includes the
top representative of every bank regulator in the country.
On July 10, Fischer gave a speech in Cambridge, Massachusetts that
appeared to question the structure of the FSOC, stating: “It may well
be that adding a financial stability mandate to the overall mandates
of all financial regulatory bodies, and perhaps other changes that
would give more authority to a reformed FSOC, would contribute to
increasing financial and economic stability.”
Congress created the FSOC under the Dodd-Frank financial reform
legislation. It’s not clear where Fischer got his mandate to create a
Fischer started Bank of israel on buying the S&P stock index.
I suppose the next drug administration of the wonder cure "QE" could
be administered mainline into our S&P patient, so be very nimble shorties
. These maniacs at the Fed will do anything to prop
things up while there is still something to be gained for themselves.
Here is where Lassonde predicts a speculative mania on the Shanghai Gold Exchange:
“The Gold Report: Do you believe China seeks a dominant position in world bullion ownership?
“Lassonde: Three points: First, the Chinese authorities very much encourage private gold ownership, for instance in TV ads. Second, 10 years down the road, the Shanghai Gold Exchange is likely to determine the gold price, not the Comex. Third, I have maintained for quite a few years that when we reach the peak in this gold cycle, the SGE will resemble a casino. The Chinese have a huge propensity for gambling, and this is what will likely propel the gold price to levels that we probably can’t even imagine.”
Despite the fact that Western investors see no need to own gold, the Chinese desire to own it today. As Chinese QE proceeds, the desire to own gold will increase.--D. Amoss
Velasco has an excellent record of buying low and selling high--you can see all his buys and sells in recent years at the J3SG website. He knows when his company is a bargain, but timing depends on when the market recognizes it. Patience required.
Please Google or search for the article-- A Fraud By Any Other Name Is Still A Fraud
It confirms my last short post. The BGEIX buying program continues while we are at 11 or under--small contributions every day.
There is much more debt than there is "money". In fact, without the constant creation debt the monetary system would collapse. Since debt is created out of thin air and loaned out, all of the money in existence is actually owned by somebody else, which is why the central bankers consider everyone's money as their own. All the debtors, including taxpayers, have to repay both the principal and the interest on debts. Since only debt is created at the time a loan is made, this makes it a mathematical certainty that more debt must be created to cover the interest payments due at a later date. The most powerful people in the world own this debt creation machine. Anyone who messes with it will soon be taking a dirt nap. These folks consider billions of us as nothing more than worthless insects.
The Rothschilds will not accept any competition. The US Treasury Notes were allowed to circulate alongside the Federal Reserve Notes so that the public would accept both and see no difference between the two, so that by the time the US Notes were purposefully taken out of circulation, the remaining Federal Reserve Notes, also labeled as and called "dollars" were readily received as the nation's currency. The first stage of the world's largest Ponzi scheme succeeded. Next was the removal and eventual suppression of the price of gold, an ongoing activity by central banks, with the collusion of the bought-and- paid-for de facto government from that time and up to this day, and for the foreseeable future.,,
What is important to watch for next is how price reacts from Friday's high. If the market is to continue to rally, the next correction should have smaller ranges to the downside on a lessening in volume. This will tell us the selling is weak. As the daily chart stands, it is not giving any clear sign of market strength. That could change next week, but until the change occurs, gold will continue to struggle.--M Noonan
1000 S&P is not my target, it was to shows what is needed to be the worst crash in history. Generally I expect a period of waterfall declines between now and November, and drawing on the historical analogs, those declines should exceed 18%. Thereafter I expect a multi-month partial retrace of the falls.--John Hamson
Mon 11 Aug, 1 day after full moon
Mon 25 Aug, new moon
To sum up, IF we were to experience the worst market devastation ever, then the set-up that we have would be pretty ideal for it, namely all-time extremes in valuation, sentiment, leverage, complacency, cross-asset valuation and allocations, the waning of the solar maximum, and the period of the year July-November. Initiation for waterfall selling could potentially trigger around one those August dates.
I am not peddling fear, I am just drawing together the common themes of historic crashes and pointing out how we fit in. We fit in well, so we need to consider the range of potential results. I am not predicting the worst crash in history, but I am predicting there will be a period of waterfall selling at some point to wash out the leverage and I see no compelling case for that episode to be mild and anomalous compared to the others. We are flirting with deflation and nominal values are therefore at greater risk. Therefore, considering the possibility of the worst ever crash does not seem inappropriate.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.
Citigroup – the bank that was propped up after its crash in 2008 with $45 billion of TARP funds, over $300 billion in asset guarantees and more than $2 trillion in low-cost loans from the New York Fed, is now effectively an unregulated stock exchange operating in the dark and annualizing at over $1 trillion in dollar volume in stock transactions. Simultaneously, it is operating insured deposits banks spread across America – all at a time when it has flunked its stress test with the Federal Reserve, which doesn’t have confidence in it to manage its affairs in a sharp downturn.
Citigroup’s previous dark operations – hiding tens of billions of dollars of debt off its balance sheet – contributed to the bank’s collapse in 2008 and its stock losing 60 percent of its value in just the week of November 17-21, 2008. Its regulators were too busy schmoozing with it to see the disaster that was about to befall the bank and the nation.
Under the current market and regulatory structure and lack of meaningful, transparent probes by the U.S. Department of Justice, the public has a very solid basis for distrusting Wall Street.--Wall St on Parade
In 2008 the securitized mortgage market was a liquid multi-trillion dollar market that became a no-bid market and remains so today. If he is correct, and I expect time will prove he is, the five-trillion dollar corporate bond market, like the market for mortgage backed securities would disappear over the course of a few months, as bond yields soar far above their highs of 1981. The stock market will not be immune from a disaster in the bond market as many listed companies trading on nation’s stock exchanges will also be deeply involved in the coming bond market debacle.--these posts are out of order--Yahoo board are bad--readthe posts as Bonds and then Bonds 2, 3,4.--thanks.
As I’ve noted many times before; gold and silver * DO NOT * benefit from monetary inflation, financial assets like stocks, bonds and real estate do. Gold and silver, as well as other precious metals and mining shares benefit from deflating financial assets. As people once again flee from deflation, they will seek the safety of investments in gold and silver. With many trillions of dollars, euros, and yen bidding for the limited supply of market available gold and silver, don’t be surprised when the precious metals markets become no offer markets. In a world where ivy-league academics control the volume of credit and money circulating in our economy, it would be unwise to expect a positive outcome. Gold, silver and the depressed precious-metal miners never looked so good.
Significantly, the CI gives us the bond market’s appraisal of the ability of issuers of lesser quality investment grade bonds to service their debts to term. Since 1999, the bond market, (as seen by Barron’s CI), has an increasingly maligned view of American bond issuers’ ability to service their debts to term – and for good reason.
In early July David Stockman, President Reagan’s former budget director called the five trillion dollar corporate bond market “the IEDs of monetary central planning that will soon be exploding along Wall Street.” Here few snippets of what he said:
But today’s bond market has real problems. I may be the only market commentator today who regularly publishes Barron’s Confidence Index (CI), but I’m glad to do it as the CI has been an excellent forecaster of future economic conditions since the 1930s. It’s important to understand that the CI is not a bond market timing tool. In fact it’s a horrible tool for timing the bond market. The CI increased during most of the 1950-81 bond bear market, and declined during the 2000-2014 bond bull market. So, what good is it?
The real problem with bonds is that they’re a relic of the gold standard, an anachronism that for investors serves no purpose in our world of unrelenting monetary inflation. Below are the plots of the component yields used in Barron’s Confidence Index (CI); these yields are from bonds rated investment grade. Bear markets are seen as rising bond yields, bull markets in falling yields. If bond market history has one lesson to teach investors, it’s that buying bonds when yields are low is a mistake. Currently, yields for investment grade bonds are at levels not seen since the 1960s. Unfortunately, to retired people choosing between 0.15% offered for their savings at the bank or 5.50% from an “investment grade” bond (Red Plot below), the bond market today is deceptively enticing.