US Markets Hit Record Highs

[Taco]

"Stocks closed mixed Thursday, but the Dow was the leader, in its longest streak of record closes since the first 13 trading days of 1987. Traders often wince when 1987 is mentioned since it is remembered well as the year of the famous October stock market crash."

As of yesterday afternoon, the P/E ratio for the S&P 500 stock index reached 26.5. More importantly, since the 1870s, there have been a total of THREE times in which the average stock P/E ratio was above 26.5.

Dow pulls off a stunt it hasn't done in 30 years
http://www.cnbc.com/2017/02/23/dow-pull ... years.html

[youtube]https://www.youtube.com/watch?v=6pZCM3702Us[/youtube]

[Taco]

This just in...

Dow notches 12th straight record close as Wall Street braces for Trump speech
http://www.cnbc.com/2017/02/27/us-markets.html

[Taco]

This just in...

Record High! Nasdaq Hits 6,000 For The First Time EVER
http://www.dailymail.co.uk/news/article ... 6-000.html

The Last Time This Happened The Market Crashed
http://www.zerohedge.com/news/2017-04-2 ... et-crashed

[Taco]

Party like its 1999...

[Taco]

For the first time ever, the number of market indexes now exceeds the number of U.S. stocks...

The recent explosion in indexes has been driven by demand as many new benchmarks essentially repackage active investment strategies into indexes to cut costs.

[Taco]

[youtube]https://www.youtube.com/watch?v=w0Oz2R0u4VM[/youtube]

[Devil Dog]

Please tell us more about the Crash of 2016.

[Contrarian Expatriate]

I have been taking a contrarian (no pun intended) approach to this bubble. I am 100% out of the market, but when it goes into bear market territory which is a high likelihood, I will increase dollar cost average back into the game.

If we get down a 50% to 60% decline in the major indexes, I will go ALL IN and ride it back up to the highs.

A lot of people do not understand the math of stock losses and how much it must go up to get back to the break even point.

If a stock goes, Then it must go
Down 5% Up 5.27% to break even
Down 10% Up 11.1% to break even
Down 20% Up 25% to break even
Down 30% Up 43% to break even
Down 40% Up 67% to break even
Down 50% Up 100% to break even
Down 60% Up 150% to break even
Down 70% Up 233% to break even
Down 80% Up 400% to break even
Down 90% Up 900% to break even
Down 95% Up 2000% to break even

As you can see, losses in excess of 60% are opportunities to clean up in down markets so be careful never to catch a falling knife before the bottoming out.

[Taco]

I have been taking a contrarian (no pun intended) approach to this bubble. I am 100% out of the market, but when it goes into bear market territory which is a high likelihood, I will increase dollar cost average back into the game.

If we get down a 50% to 60% decline in the major indexes, I will go ALL IN and ride it back up to the highs.

A lot of people do not understand the math of stock losses and how much it must go up to get back to the break even point.

If a stock goes, Then it must go
Down 5% Up 5.27% to break even
Down 10% Up 11.1% to break even
Down 20% Up 25% to break even
Down 30% Up 43% to break even
Down 40% Up 67% to break even
Down 50% Up 100% to break even
Down 60% Up 150% to break even
Down 70% Up 233% to break even
Down 80% Up 400% to break even
Down 90% Up 900% to break even
Down 95% Up 2000% to break even

As you can see, losses in excess of 60% are opportunities to clean up in down markets so be careful never to catch a falling knife before the bottoming out.

That's why its a good idea to trade options. If your wrong your only loss is the price of the option which is usually about $10.

The chart below shows the S&P 500 vs the SOX (semiconductor index), XRT (retail index), IBM and Ford since the election. The SOX index was used to represent the tech sector. You can see that, similar to the culmination of the 1999-early 2000 stock bubble, the tech stocks are bubbling up like a geyser.

[Moretorque]

I think this fraud is coming to an end shortly and Asia is sitting in the drivers seat coming up that is unless we have a big NUC war that kills most of us world wide....

[HouseMD]

I think if our rulers who set this whole system up who operate out of the CITI have their way it will be the end of the $ and the American system as well and the torch is intended to be handed to Asia but I think their are factions in America who do not want to relinquish all it's power that the $ has given them....

The US stock market is just a accounting gimmick and I think this fraud is coming to an end shortly and Asia is sitting in the drivers seat coming up that is unless we have a big NUC war that kills most of us world wide....

Except China's credit just got downgraded because their debt:GDP is greater than 260%, and people have realized the holders of the debt are government agencies and the suppliers of the debt are government agencies... In a nation with only one governmental system and minimal outside involvement, you can only lend to yourself for so long...

[Taco]

[Moretorque]

I think if our rulers who set this whole system up who operate out of the CITI have their way it will be the end of the $ and the American system as well and the torch is intended to be handed to Asia but I think their are factions in America who do not want to relinquish all it's power that the $ has given them....

The US stock market is just a accounting gimmick and I think this fraud is coming to an end shortly and Asia is sitting in the drivers seat coming up that is unless we have a big NUC war that kills most of us world wide....

Except China's credit just got downgraded because their debt:GDP is greater than 260%, and people have realized the holders of the debt are government agencies and the suppliers of the debt are government agencies... In a nation with only one governmental system and minimal outside involvement, you can only lend to yourself for so long...

Go research who owns and controls Moody's Credit Agency then Google under images Warren Arnold Jacob. House you still do not get it, the whole system is a financial cluster fu ck of the mind for the fools who are stupid enough to believe the counterfeiters narrative of total bull $hit from start to finish....

[Moretorque]

[quote="HouseMD"][quote="Moretorque"]I think if our

[HouseMD]

I think if our rulers who set this whole system up who operate out of the CITI have their way it will be the end of the $ and the American system as well and the torch is intended to be handed to Asia but I think their are factions in America who do not want to relinquish all it's power that the $ has given them....

The US stock market is just a accounting gimmick and I think this fraud is coming to an end shortly and Asia is sitting in the drivers seat coming up that is unless we have a big NUC war that kills most of us world wide....

Except China's credit just got downgraded because their debt:GDP is greater than 260%, and people have realized the holders of the debt are government agencies and the suppliers of the debt are government agencies... In a nation with only one governmental system and minimal outside involvement, you can only lend to yourself for so long...

Go research who owns and controls Moody's Credit Agency then Google under images Warren Arnold Jacob. House you still do not get it, the whole system is a financial cluster fu ck of the mind for the fools who are stupid enough to believe the counterfeiters narrative of total bull $hit from start to finish....

Except my fundamental point that China is selling debt to itself then being forced to pay that debt back to itself with money it makes for itself still stands.

The difference with the US economy is that we're more diversified and most of our spending doesn't go to government projects, it goes to private hands. An internal cycle like China has will self destruct catastrophically when it requires outside resources.