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US Markets Hit Record Highs

Discuss issues related to business, finance, taxes, investments, cost of living in different countries, etc.

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Taco
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Re: US Markets Hit Record Highs

Post by Taco » January 11th, 2018, 1:40 am

jamesbond wrote:
January 11th, 2018, 12:38 am
They say in 2018 their is going to be a correction in the stock market. It might be a correction of biblical proportions (a market crash). :shock:
Welcome to 2018 – a year that will be the culmination of at least 105 years of mismanagement of the Western financial system by governments, central bankers and the elite…

Stocks are now in a melt-up phase, and before the major bear markets start in virtually all countries around the world, we are likely to see the final exhaustion moves which could be substantial. The year will also be marked by inflation increasing a lot faster than expected. This will include higher interest rates, much higher commodity prices, such as food, oil and a falling dollar. And many base metals will strengthen. Precious metals have finished their 2-3 year correction are now resuming their move to new highs.

In this bull market there have been 374 trading days without a 5% or greater pullback, the second longest streak since 1928. This is pretty remarkable considering that 5% pullbacks have occurred, on average, 3x per year since 1928.

Sadly, most investors will remain convinced that current times will last forever as stocks and cryptos move to new highs. Few will realize that we are approaching the end of the biggest bubble in history.

No society that depends on money can work for long if nobody knows the true value of things, including the value of money itself. The price of attempting to live in a culture of pervasive dishonesty is that an asset price re-set is inevitable. When it happens, it will be hugely destabilizing.

Asset bubbles are financially destructive in the same manner as ocean waves. Their force is not linear, but exponential. A 4-foot wave has 16 times the force of a 1-foot wave; something any surfer knows from experience. We are now at the apex of the most incredible nest of financial bubbles in all of human history. I hate to break it to you, but chances are you’re just not prepared for what’s coming. Not even close.
“Every time a President leaves the White House after two terms, there is a recession within the next year"

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Adama
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Re: US Markets Hit Record Highs

Post by Adama » January 11th, 2018, 2:34 am

If there is a crash, unless the world ends, there will be a recovery. There always has been since the inception of stock markets. Can people lose money if they invest in something that goes bust, like tulips? Sure. But the market itself will recover.

Taco
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Re: US Markets Hit Record Highs

Post by Taco » January 11th, 2018, 4:18 am

Adama wrote:
January 11th, 2018, 2:34 am
If there is a crash, unless the world ends, there will be a recovery. There always has been since the inception of stock markets. Can people lose money if they invest in something that goes bust, like tulips? Sure. But the market itself will recover.
No one is going to care about the stock market when this blows up. The high stock market is a measure of inflation.

People are hard wired to be optimistic so no matter how extreme the danger the worst market crash in 500 years will be all they can think about is how much money their going to make from it instead of leaving America. The middle class will be completely destroyed. That's a hard concept for most people to understand. However, people in Venezuela understand it because they have best preforming stock market in the world right now while everyone is starving.

Venezuela Is Living a Hyperinflation Nightmare
https://www.bloomberg.com/view/articles ... -nightmare

Inflation@720%, yet stocks up 1,100%: Venezuelan equity poses ultimate puzzle
https://economictimes.indiatimes.com/ma ... 861116.cms
“Every time a President leaves the White House after two terms, there is a recession within the next year"

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Adama
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Re: US Markets Hit Record Highs

Post by Adama » January 11th, 2018, 4:37 am

Maybe this discussion is not worth it, but I would think there are other things affecting the Venezuelan economy. Correlation is not causation.

Taco
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Re: US Markets Hit Record Highs

Post by Taco » January 17th, 2018, 2:37 am

The Dow went up 1000 points in the last 7 trading days

Dow bursts through 26,000 in record seven trading days
http://www.chicagotribune.com/business/ ... story.html

The risk appetite indicator is at a record high...

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“Every time a President leaves the White House after two terms, there is a recession within the next year"

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