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Wall Street Greed :: Politicians Fear

Doctrader — Fri, 30 Oct 2009 18:24:08 +0000

If Wall Street’s Greed and Politician’s Fear could have solved the financial crisis, then why did we have to go through the pain of last year?

: Image by doctrader via Flickr

For free market capitalism to work, both Main Street and Wall Street have to have greed and fear. Even today, they average long term investor is only “Fearful” of missing the bull next rally. They do not have any “fear of losing everything”. The “baby boomers” have taken the “buy, hold, and hope theory” to the maximum level, being eternally over optimistic with regards to the economy. After all, they learned investing during the 80’s and 90’s when the market had spectacular gains. Now the baby boomers find themselves in a difficult position, believing the market will go up and the value of their homes will go up at the same time! Currently, many baby boomers are putting off their retirement, once again, hoping the markets will reward them for the failed theory of “buy, hold, and hope investing strategy“.

Fear and Greed are supposed to rule the markets, yet Wall Street has conditioned you to only have “fear” of missing the next bull rally. So you buy, hold, and hope for the next bull market rally! You wanted cheap goods, cheap oil, while continuously buying more and consuming more! I remember in 2008, when people were complaining about gasoline being at $5 a gallon. I asked them, which is more valuable, a gallon of gas or your 401k plan? The value of you portfolio in you 401k plan is directly linked to economy of oil, and oil to your stock market gains!

Meanwhile, the market media matrix was touting Goldie locks economy, green shoots, what is their next slogan to get you to spend every dime of your paycheck?

Wall Street has “Greed”, and no fear. Wall Street tells the politicians as the markets were falling, ” we are all in this together”! Last year, there were secret cigar smoking strategy rooms, weekend mergers, hostile takeovers, and plenty of back alley back stabbings stealing assets from weaker competitors. The dog eat dog world of Wall Street, everyone was fighting to stay alive.

Now, just a year later, no one is talking about the “toxic assets” that are still held by those bailout cry babies. Meanwhile Bernake, Geitner, and Kardashin, are bringing in tons of cash to shore up the financial services industry with the indentured taxpayer! The next market crash, will ensure the debts to your children and grandchildren.

OUR country’s future is foretold in the headlines of history, “The 100 Trillion Dollar Note” as Zimbabwe tries to stifle the fires of hyper inflation. Politician’s Fear taking preventive actions, only to act decisively during a crisis, always choosing the politically expedient incompetent answer. A Trillion here, a trillion there, pretty soon we are talking about “real money”! Spending 25% of the nation’s GNP has never solved any nation’s debt problem in the history! The idiots in congress have never managed a busines, let alone a simple a “hot dog stand”, yet they want to master mind economic recovery with an estimated100 Trillion in unfunded liabilities.

The Politician’s Greed, for incumbency forces him to take action during a crisis. He rejects free market capitalism correcting mechanism, forgoing the short term temporary pain of a Depression. He purposes silly fixes and proudly announces that he has solve the problem.

Engineering our way to a Weimar Republic, which could be worse than a “Great Depression“. In either case, hyper inflation or depression, you will still have to have food! If you don’t have 6 month to a years supply of food, that may be your best investment choice over the next 6 months. Time is running out, you cannot simply trust in the “buy, hold, and hope” theory any more!

Doc

History Repeats!

Dubai Crisis, Holiday Sales Will Dominate Trading (abcnews.go.com)
Why the Stock Market Looks Bullish for Autumn (time.com)
Stock Market Bulls Starting To Get Giddy? (blogs.wsj.com)

Technorati Tags: baby boomers, business, Great Depression, investing, Investment, market media matrix, market trend, stock market, Stocks and Bonds, Wall Street

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Buy and Hold Myth Part 6

Doctrader — Sat, 03 Oct 2009 21:56:23 +0000

Final wrap up of secular markets and the dangers of “buy and hold” theory that wall street touts through it’s “market media matrix” networks. If you review the videos, part one shows you how a typical depression era bear market behaves. The price action is similar to that of the NASDAQ market, reaching a high of 5000 points only to lose 80%. It has been 9 years, and yet the NASDAQ has failed to return to new highs. However, the Dow Industrial Index made new highs. The reason for the Dow Jones Industrial average reaching new highs was because this index is largely “commodity based”. The stock exchanges changed the stocks of this index during the first cyclical bear market in 2000, putting a few high tech stock into the index and some diversified financial services. The Fed has created the biggest liquidity trap in history of the world, by creating the housing bubble through mortgages and other creative financial products. These problems have not been addressed, but the Fed and the Treasury have placed your children and grand children into bondage through confiscatory taxes.

None of the “toxic assets” have been sold, yet, the Wall Street Traders and you, being invested in your 401k plans, have been participate in this short term cyclical bull market since March of this year. You have also been conditioned to “believe” Wall Street” can solve all the financial crisis, even the politicians have been convinced. However, if you have any doubts about Wall Street’s competence, then you should be worried about the next financial crisis. Using some common sense, and some technical training, you can determine when the market is overbought and over sold. I have developed some simple tools to get you started. I will be doing the rest of the 9 myths about investing over the next several weeks. If you have any questions, please email me or leave comments on the blog. You will have to be registered to leave comments, so go register and let me help you out of a loosing position. You can follow me on twitter, which I send updates on 401k plans, insurance companies, banks, and other financially interesting story I find on the internet.

Doc

Technorati Tags: 9 myths, baby boomers, bull market, investing, Investment, market, market cycles, technical analysis

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Buy and Hold Myth Part 5

Doctrader — Sat, 03 Oct 2009 11:39:21 +0000

The Buy and Hold Myth, part 5, looking at next week, the market will have price reminisces of last years stock market. Now, if you thought the market reached it’s low last year, you still suffered losses through the low in March 2009. How would you like to learn how to avoid these unnecessary market drops, you will have to learn technical analysis to time the market during these short term cycles. My blog post in Jan, 2006, I explain how the market media matrix manipulates into thinking there is always and eternal bull market. I reviewed Jane Bryant Quinn article about the theory of “buy and hold” for long term investors. I think you will find it interesting to know that if you missed the best 90 days of market gains, you would have a paltry$2.70 for every dollar invested. If you followed the “buy and hold” theory, you would have $75 for every dollar invested. Now that sounds like a good case for buy and hold, right?

However, if you would have missed the worst 90 days of the market, your gains would have been $1694! I guess Wall Street’s “market media matrix” does want you to know about that!

A. buy, hold, hope for 42 years for 90 good days in the market, results $75.
B. time the market yourself and miss the best 90 performing days, results $2.70
C. use Doctrader’s “red signal line” to avoid the worst performing 90 days of the market, results $1694.

Raise your hand if you can see which choice you want!

Introducing the “red signal line” to determine if the market are in a long term bull market or a long term bear market.

Technorati Tags: 9 myths, Analysis, baby boomers, bull market, financial, investing, Investment, market, market media matrix, Part 5, technical analysis

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Myths about Buying and Holding Part 3

Doctrader — Sat, 03 Oct 2009 00:46:59 +0000

The Myths about Buying and Holding Stocks for the long term is just that, a Myth! In Part 3 of the Video series I am show you where the Baby Boomers begin moving the market, first as dependents, then as consumers. My blog post last year about the Great Depression or Recession I wrote, ”

Currently, the demographics are unclear relating to the baby boomers, yet by Nov. 4th, when the elections are closed will there be riots on main street or a selling riots on Wall Street?”

Looking at the stock market for the previous secular bear market, you can see for yourself, the market didn’t make new highs, but was stagnant. The Demographics of the Baby Boomers, were still in the early stages of getting their first jobs, starting their families, and begin to invest through their company’s 401k plans. The baby boomers were early adapters of the new technologies to increase their productivity.

Coming out of the 1966-1984 secular bear market, they begin the Greatest Bull market that will never be repeated again. Stay tuned for Part 4 of the “Buy and Hold Myth”.

Technorati Tags: 9 myths, baby boomers, investing, Investment, market, market cycles, part 3, stock, technical analysis

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Buy and Hold Myth Part 2

Doctrader — Fri, 02 Oct 2009 18:57:51 +0000

The buy and hold myth continues with part 2 of 6 explaining how long term investors are gambling on their family’s financial future. Barrack Obama urges “common sense” in financial regulations.

Tuesday September 15 2009

US President Barack Obama, speaking a year after the Lehman Brothers‘ collapse, warned against complacency as the financial crisis ebbs and said the US must have a new regime of “common-sense” regulations to avoid another market meltdown.”

I am urging those with 401k’s, 403b plans to use a little common sense when you are choosing a long term buy and hold strategy. During this Secular Bear market, lasting 18 years, you should take steps to protect any gains you have left.

Technorati Tags: 401k, 9 myths, baby boomers, bailout, banking, bull market, buy and hold, common sense financial, investing, Investment, market, market cycles, obama, part 2, retirement, technical analysis

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COMMON SENSE » baby boomers

Wall Street Greed :: Politicians Fear

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Buy and Hold Myth Part 6

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