The stock market is on the second longest bull market in history, and this is no accident. Dark money has been moving into the markets buying up assets to keep this this pumped up.
If you check out @marketreport Greg does a good job of explaining this day in and day out.
This market is being pumped up so much, it's nuts. It has to make a very large correction eventually. I hope you are all in the markets with caution, not holding any positions over the weekends. Make sure you stay away from tech stocks as well. I've been getting burned so hard on these. MU and AMD both took phenomenal shits on the nominal value of my portfolio.
Take your profits when you can, put some of those profits into crypto and metals, and keep your eye on the market. The risk here is extremely high. Be modest and avoid losses more than anything.
A good diversification to your portfolio would be a mining stock that I like: SBGL. It's a steal at $5.06.
There's a good chance it could get pushed down further because of metal price suppression.
*This is not financial advise, just my opinion.*
Anyways guys, be careful at these levels. We are in for a big drop downwards.
Thanks for reading.
Interesting but how do you account for the role of inflation? After a decade of near-zero rates for US treasuries and, globally, central banks literally printing money, you'd expect prices to rise. But that doesn't mean wealth is being created any faster or slower than before. Motley Fool gives a really simple explanation of the difference between money and wealth -- https://www.fool.com/how-to-invest/2014/02/22/how-the-inflation-rate-affects-your-wealth.aspx .
It also doesn't mean there's a bubble. This "bull" market is simply inflation pushing prices up. Corrections happen all the time, and unless there's a loss of liquidity -- e.g., bank panic, defaults, etc -- the markets always rebound.
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The inflation that we are seeing today is inflation in assets (housing and stocks) rather than a rice in commodities and food. I think we aren't seeing prices rise as much because people are starting to pay off debt and save money. And the market is absolutely a bubble. Look at the PE ratios in the S&P 500. The Fed is literally buying bonds to keep the markets up as well as buying stocks across the board. You have to recognize the market is rigged to go up regardless of earnings. In fact, earnings have been stagnant for a while now, yet stock prices continue to climb. This screams bubble. Plus the economic cycle turns over about once ever 7 years. It's all just a giant pattern based off of fictitious statistics created by the gov and greed by individuals in the market.
I'm guessing the market will correct 50%. I know doomsayers predict a collapse every day ending in 'y' but I think this crash could be very serious considering our problems from '08 were never solved and national debt is now even higher.
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But yes, after a correction, the market will rebound. It's just nice to buy low and sell high to maximize profits.
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