Trade what you SEE! Not what you THINK!
The Rally
- Thread starter eagle488
- Start date
Trade what you SEE! Not what you THINK!
God am i good.
I think it's you who seemingly is having trouble understanding. Let's go a bit S L O W E R ... the US savings rate is negative because consumers are spending all their wages and dipping into savings. Do you advocate they get more credit cards to max out so they can pay off the lower percentage cards they've already maxed out?
Inflation over the past 90+ years is around 3.4% on average annually. So the CD @ 5.6% will outpace inflation at today's CD rates. And the net yield for the "average" non-saving consumer will exceed the 3.75% you cited. Avg. inflation over past 5 years is 2.76%.
And no ... "fixing" the APY on savings vs. inflation won't solve the problem. US consumers by and large want everything today ... they buy what they want .. whether they need it or not and whether they have the money or not.
And maybe you'll be a Wal-Mart "greeter" in your old age if you've not saved any $$$ for retirement. Go see what the average 50 year old has in retirement savings. It's nothing ...
This isn't rocket science ...
I have to give Mav credit for one thing that seems forgotten a bit on this thread. We are traders, not investors. Investors can afford to be contrarian. Countertrending traders generally can't stay solvent long enough to prove themselves right.
Trying to predict a market drop over the next week using market fundamentals is nonsense.
Quote from Maverick74:
Dude, who cares. One day when the market rolls over, then get short. Trade what you see, not what you think. You are trying to rationalize a short position. Nothing wrong with being short, but don't be short because you think John Q Public is spending too much money. The cardinal sin in trading is trying to talk your book.
You may be right, the end of the world might be upon us. But we might rally first!
Absolutely frickin' right.
