Schwab's Sonders: The Bright Side of America's 'Lost Decade' in Stocks

It's gotton to the point that you can't trust any of these strategists anymore.You just have to look at what is really happening around you to decide for yourself.The only bottom Sonders knows is the bottom she is sitting on.

Use some simple indicators and average in slowly. 25 day SMA crosses 50 day SMA. Macd positive. RSI Positive. This COULD be the beginning of a turnaround. Use the indicators above and you will see. It has NOTHING to do with reality. Investing is investing. Economy is seperate. When the above indicators are positive, as they are now, (as of 2 days ago), start averaging in. 5-8% at a time. Keep stops tight, and hope it IS the beginning. If things stay positive, average in a little more. It's not that hard. START slow. Tight stops. See what happens. It is only in the last couple of days that things look good enough to try and average in. What do I think? Probably wont last but who cares? If the indicators say it's time to buy a little then thats what you do. ALWAYS STICK WITH THE SAME PLAN! Emotions will KILL you. KRS ChFC, IAR, Reg Rep.

Wait for earnings. Don’t be fooled by estimates. Look at the spiral.

"Welcome to the Great Depression II. Thank you very much Al Greenspan, Barney Frank and GW!"---------They call them the three stooges. And they should be throwing more than shoes at these guys.

Figures. More bears running scared promoting their fear-mongering. Apparently none of them witnessed the the 80's crash the dot com crash or even Sept 11th 2001 all the people in the market then lost huge gains. Everybody was running scared. But look again a year later after the 80's crash and boom; most of those stocks were back in black. The dot com crash slowed the tech industry down, but after awhile the establish names made their mark and were ruling the tech roost. And lastly after September 11th our economy had some serious issues but since April 03 to Oct 2007 we had record gains. The sky is not falling. We had a correction in the market and we are likely starting to see a moderate turnaround in these markets. We need and patience with our economy and our president elect he's working on a plan. I'm definitely fiscally conservative but I think Obama is hitting the fundamentals with vigor and applaud his efforts and wish him the best as our president. Just be patient people we will get through this as a nation.

According to the business cycle percent change chart, we are in the tenth year of a sixty (that's right, sixty) year depression, and I have been saying so for more than seven years. We haven't seen a depression longer than ten years, but we're in a sixty year depression now. The business cycle percent change chart is the only chart whose predictions have never been wrong, all the way back to the beginning of the stock market, correctly predicting the length and breadth of the depressions of 1837, 1873, 1893, 1907, and 1929, once each began.

With the market the way it is I advise to find blue chip stocks that are near their 52 week low and buy we will not fall anytime soon. America will prosper pretty soon with the new president in office. After his cabinet takes office, we will see a wave of fresh air. Sure the situation is bad, but I believe this is the bottom. Buy now I say and remain confident in the American way :-)

Figures. More bears running scared promoting their fear-mongering. Apparently none of them witnessed the the 80's crash the dot com crash or even Sept 11th 2001 all the people in the market then lost huge gains. Everybody was running scared. But look again a year later after the 80's crash and boom; most of those stocks were back in black. The dot com crash slowed the tech industry down, but after awhile the establish names made their mark and were ruling the tech roost. And lastly after September 11th our economy had some serious issues but since April 03 to Oct 2007 we had record gains. The sky is not falling. We had a correction in the market and we are likely starting to see a moderate turnaround in these markets. The votalitivity is slowly leaving the market we aren't seeing the 500 up and down days we were seeing just a month or two ago, that's a good sign we just need to be patient. We need vigilance and patience with our economy and our president elect he's working on a plan. I'm definitely fiscally conservative but I think Obama is hitting the fundamentals with vigor and applaud his efforts and wish him the best as our president. Just be patient people we will get through this as a nation.

Would you buy a used car from Liz Ann Sonders?

Figures. More bears running scared promoting their fear-mongering. Apparently none of them witnessed the the 80's crash the dot com crash or even Sept 11th 2001 all the people in the market then lost huge gains. Everybody was running scared. But look again a year later after the 80's crash and boom; most of those stocks were back in black. The dot com crash slowed the tech industry down, but after awhile the establish names made their mark and were ruling the tech roost. And lastly after September 11th our economy had some serious issues but since April 03 to Oct 2007 we had record gains. The sky is not falling. We had a correction in the market and we are likely starting to see a moderate turnaround in these markets. The votalitivity is slowly leaving the market we aren't seeing the 500 up and down days we were seeing just a month or two ago, that's a good sign we just need to be patient. We need vigilance and patience with our economy and our president elect he's working on a plan. I'm definitely fiscally conservative but I think Obama is hitting the fundamentals with vigor and applaud his efforts and wish him the best as our president. Just be patient people we will get through this as a nation.

Figures. More bears running scared promoting their fear-mongering. Apparently none of them witnessed the the 80's crash the dot com crash or even Sept 11th 2001 all the people in the market then lost huge gains. Everybody was running scared. But look again a year later after the 80's crash and boom; most of those stocks were back in black. The dot com crash slowed the tech industry down, but after awhile the establish names made their mark and were ruling the tech roost. And lastly after September 11th our economy had some serious issues but since April 03 to Oct 2007 we had record gains. The sky is not falling. We had a correction in the market and we are likely starting to see a moderate turnaround in these markets. The votalitivity is slowly leaving the market we aren't seeing the 500 up and down days we were seeing just a month or two ago, that's a good sign we just need to be patient. We need vigilance and patience with our economy and our president elect he's working on a plan. I'm definitely fiscally conservative but I think Obama is hitting the fundamentals with vigor and applaud his efforts and wish him the best as our president. Just be patient people we will get through this as a nation.

The DOW at 8,000 is what is supported by the fundamentals...that is all.

To Terry F -- I don't know if I should believe anyone who does not know how to spell the word 'too'.

US have moral and ethical problems, sending the wrong doer to jail will build more confidence than pumping more money to economy. --------------------------- 1. Ex-president of NASDAQ, Bernie Madoff, operates the Ponzi scheme for 20 years for $50 billion. How many more Ponzi scheme in Wall Street? The offshore secret companies created by Wall Street are huge bubbles, how many crooks are prosecuted? ---------------------------- 2. The whole manufacturing capability is demised. US economy is 70% service related, just like one person makes a pair of shoe, one person sells it, another person polishes it, another person repairs it, and another person just pushing some paper around for that pair of shoe. How can an economy last for very long? ------------------------------- 3. Currently, average American has 16 credit cards and carrying $16,200 balances, and people also over burdened by over spending in the past. When people can not borrow any more and can not pay their credit cards, then a bigger avalanche than the subprime crisis will come? ----------------------------- 4. The financial institutions is leveraged 30 to 40 times, just like I have 100 dollar in my pocket, but I spend the money like I have 3,500 dollar in my pocket. When I go to a casino and betting 3,500 on a table and I won, I put all the winning in my own pocket, when I lose the bet, Uncle Sam will bail me out. What the hell is this? ------------------------------ 5. It is true; the total subprime loan amount is only 5% to 6% of the total loan amount. However, because of the subprime loan, the medium price of home in US is increased 65% in the past 8 years, and income for average person is hardly changed. The home price is most likely to decline for another couple years. --------------------------------------- 6. This country has negative saving rate, the average person have very little money in the bank today. Most people, if they save anything at all, put it in their 401k (stock market) and the stock market is down 45% from its high of 14,000. The end result is 45% of the savings disappeared. Where is money? --------------------------- 7. The accumulated federal deficit was 5.5 trillion dollar 8 years ago. The deficit is double in 8 years to almost 11 trillion dollar. In this year, the federal Government deficit is more than one trillion. The estimated bailout money tally by Bloomberg News is 9 trillion dollar already. Who is going to pay these? ----------------------------------- 8. President Obama promised all kinds of goodies, such as tax cut, national health insurance, etc. to American in the total amount of 3.4 trillion dollar. Where is the money? More taxes? More deficits? ----------------------------------- 9. According to Guardian, a UK publication; US is the world largest user and exporter of child pornography (Japan is next). According to United States Postal Service, the confiscated Child Pron DVD is growing 60% in recent years, 2,200 person are arrested in the past few years. The people committed crime, should be in jail. --------------------------------- 10. I am using CEO of Lehman Brothers as an example, Dick Fuld made 490 million dollars and Dick has guts to correct a congressman during a congressional hearing that he only made 350 million dollar, not 490 million dollars. The captains of US economy have no shame left? no heart left?----------------------- 11. When vast majority of taxpayers against Wall Street bailout, why the congress still pass it? Could it be the congressman added 150 billions of so called "sweeteners" in addition to 700 billion dollars bailout? How much political contribution the congressmen receive from the company operating in American Samoa? The producers of wooden arrows? The rum produces in Virgin Islands? -------------------------------------------- 12. In June 2006, Goldman Sachs spent $2.6 billion for a 5 percent stake in the Industrial and Commercial Bank of China, China's largest state-owned bank. For the fourth quarter, Goldman earned $949 million in profits from this investment. Indeed, most major western banks ‘invested’ in China’s state-owned banks and made several hundred percent profit a year. Goldman Sachs still lost 2.6 billion in Q4. How many years can this last?

Yeah, and Japan has recovered quite nicely after Nik rose close to 40,000. This is not the 80s, dot.com, or 911 corrections. This is a real correction that is needed. Gov't spending won't help in the long run. No one is going to pay back the debt. No one wants to pay taxes. Especially the rich (who run the country). What happens when the USA's credit rating drops? Also, just in case the market does recover a little bit, be prepared for the Boomers to sell like there's no tomorrow. They want their money back.

These "market gurus" know just as much as the "common folk" do when it comes to this market! All the MBAs, PHDs don't do diddily! These are not normal markets! There is much manipulating going on, namely by the big players and hedge funds. We get a big rally (and I use that loosely=rally from what? 6,000 points down from the market highs) and then 1-2 days later we are right back or lower than before. I think if your a short period trader, there can be $$$ made: If the market rallies 700-1000 points in a day or two, I wuld short it and take profits, because a minimum of 600-700 of those points will disolve right in front of your very eyes in 1-2 days, let alone all of the "so-called" gains. Unemployment is horrendous, the dollar will fall like a rock, housing is still sour, banks aren't lending STILL, people are UNDEREMPLOYED and/or quit looking for work (these stats AREN'T in the statistics), the "Big 3" are about to fail, oil will rebound because of the production cuts of OPEC and the likes (Russia, Venezuela, and any country in the Middle East hates us), taxes are going to go up, the cost of food is still rising, health care is still rising, the budget deficit is balloned where there will be no way to pay it off=good luck to the youngest generation, sociol security will end up drying up, and FINALLY, the war is taking billions out of our own economic needs. Does that sound like the market is ready for a comeback anytime soon?! Don't let the "pros" who say the market is cheap on valuations! The P.E. ratios are going to have to be adjusted for future earings (this is a small play on words=earnings are going DOWN). The P.E.s we have now are based on old earnings projections; factor in adjusted earning projections, and you will have much higher multiples! The reality is money can be made, but in very short intervals! You can seel when the market gets a good tow day "rally"=short the market or buy when we get down to the 8000 level and do fairly well! Stocks that are great plays are WFC when it get to 24-25, SLV when it gets to 9, UNG when it gets to 23.00, RIMM when it gets to 37, MSFT when it gets to 18, GLD when it gets to 75, AAPL when it gets to 85, DNA, etc.. Thus endeth the lesson

These "market gurus" know just as much as the "common folk" do when it comes to this market! All the MBAs, PHDs don't do diddily! These are not normal markets! There is much manipulating going on, namely by the big players and hedge funds. We get a big rally (and I use that loosely=rally from what? 6,000 points down from the market highs) and then 1-2 days later we are right back or lower than before. I think if your a short period trader, there can be $$$ made: If the market rallies 700-1000 points in a day or two, I wuld short it and take profits, because a minimum of 600-700 of those points will disolve right in front of your very eyes in 1-2 days, let alone all of the "so-called" gains. Unemployment is horrendous, the dollar will fall like a rock, housing is still sour, banks aren't lending STILL, people are UNDEREMPLOYED and/or quit looking for work (these stats AREN'T in the statistics), the "Big 3" are about to fail, oil will rebound because of the production cuts of OPEC and the likes (Russia, Venezuela, and any country in the Middle East hates us), taxes are going to go up, the cost of food is still rising, health care is still rising, the budget deficit is balloned where there will be no way to pay it off=good luck to the youngest generation, sociol security will end up drying up, and FINALLY, the war is taking billions out of our own economic needs. Does that sound like the market is ready for a comeback anytime soon?! Don't let the "pros" who say the market is cheap on valuations! The P.E. ratios are going to have to be adjusted for future earings (this is a small play on words=earnings are going DOWN). The P.E.s we have now are based on old earnings projections; factor in adjusted earning projections, and you will have much higher multiples! The reality is money can be made, but in very short intervals! You can seel when the market gets a good tow day "rally"=short the market or buy when we get down to the 8000 level and do fairly well! Stocks that are great plays are WFC when it get to 24-25, SLV when it gets to 9, UNG when it gets to 23.00, RIMM when it gets to 37, MSFT when it gets to 18, GLD when it gets to 75, AAPL when it gets to 85, DNA, etc.. Thus endeth the lesson

These "market gurus" know just as much as the "common folk" do when it comes to this market! All the MBAs, PHDs don't do diddily! These are not normal markets! There is much manipulating going on, namely by the big players and hedge funds. We get a big rally (and I use that loosely=rally from what? 6,000 points down from the market highs) and then 1-2 days later we are right back or lower than before. I think if your a short period trader, there can be $$$ made: If the market rallies 700-1000 points in a day or two, I wuld short it and take profits, because a minimum of 600-700 of those points will disolve right in front of your very eyes in 1-2 days, let alone all of the "so-called" gains. Unemployment is horrendous, the dollar will fall like a rock, housing is still sour, banks aren't lending STILL, people are UNDEREMPLOYED and/or quit looking for work (these stats AREN'T in the statistics), the "Big 3" are about to fail, oil will rebound because of the production cuts of OPEC and the likes (Russia, Venezuela, and any country in the Middle East hates us), taxes are going to go up, the cost of food is still rising, health care is still rising, the budget deficit is balloned where there will be no way to pay it off=good luck to the youngest generation, sociol security will end up drying up, and FINALLY, the war is taking billions out of our own economic needs. Does that sound like the market is ready for a comeback anytime soon?! Don't let the "pros" who say the market is cheap on valuations! The P.E. ratios are going to have to be adjusted for future earings (this is a small play on words=earnings are going DOWN). The P.E.s we have now are based on old earnings projections; factor in adjusted earning projections, and you will have much higher multiples! The reality is money can be made, but in very short intervals! You can seel when the market gets a good tow day "rally"=short the market or buy when we get down to the 8000 level and do fairly well! Stocks that are great plays are WFC when it get to 24-25, SLV when it gets to 9, UNG when it gets to 23.00, RIMM when it gets to 37, MSFT when it gets to 18, GLD when it gets to 75, AAPL when it gets to 85, DNA, etc.. Thus endeth the lesson

Fed rate cut was just a feel-good Christmas gift gesture that will be forgotten come January. Lots of hedgefunds need to still unwind leveraged holdings come January.

The "we had crashes before and recovered, so we will recover again", argument, omits or evades, important points. The national debt has spiraled out of control and someday soon our creditors will want their money back - all $10 trillion plus. When then? Definitely no recovery then.