It seems so obvious, like an elephant in the room. Everyone is saying the market is overvalued and expecting a severe correction in the near future. But what if everyone is wrong? What will they (central banks) do to prevent a repeat of 2008? Will the same old tricks work or have they finally run out of steam?
What will central banks do to avoid this?
- Thread starter nxt7
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It seems so obvious, like an elephant in the room. Everyone is saying the market is overvalued and expecting a severe correction in the near future. But what if everyone is wrong? What will they (central banks) do to prevent a repeat of 2008? Will the same old tricks work or have they finally run out of steam?
They will send the PPT and the problem is solved.
With the low and even negative intrest rates, there are only two solutions for making money with your savings: real estate or stocks.
With the low and even negative intrest rates, there are only two solutions for making money with your savings: real estate or stocks.
The Purge is a probable snapshot of the future...third world banana republic economy...Then again, many would argue we've already arrived.
Why do you think this is so obvious? I just don't get it, because of the graph?
More like 98-99.
Thats the real reason behind low intrest rates, to prevent a market crash, the funny thing is there draging the real economy down as well, meaning there only postponing the market crash.
And the low intrest rates push stocks higher for people looking for alternatives...
Slowly on they'll raise it so markets will have tiny corrections and the real economy will grow again. But eventually we're plunging!
If it was up to the fed and the ecb they will stick to this tight system as long as they can, its more money into stocks (so a harder plunge and moneytaking for insiders (which includes them) and its good for debts of western nations... No one loses! Except passive stockbrokers, active long stockbrokers, consumers, savers (but who cares
.)Why do you think Merkel and her german goverment is hating the ecb?
Because they know whats happening! Most citizens dont and there starting to vote for extreme left/right wing parties since they dont get it.
Reason why germany wants it stopped in europe, to minimize the damage...
And i am hearing more and more similar sounds in the states...
Why do you think bernie's anti wall street strategy works? Or trumps anti immigrant strategy works? Because people are feeling as victims... And they should!
And yes its obvious, markets tend to have paterns on longer term. A lot of traders are aware of those paterns even strengthening those paterns more.
Just like the sell in may and walk away sentence which indicates the side away volatility months, on longer term there's a patern of a crash/heavy correction every 8 year or so.
All it takes is 1 macro event of some degree that strikes fear into the believer hart and there it plunges...
Guess where we at now?
Its just getting postponed by central banks, nothing more..
When crashed the banks, brokers, and amateur active traders will be the winners and all the good working 9-5 passive long term stock traders will take the plunge after beeing punished in the real economy there escape route gets punished again.
Ironic isn't it?
Guess what central banks don't care there playing the game they have to play for there hemipsheres.
Just keep your eyes open and be ready to be among the plunge winners!
Why do you guys think that last few months every time some big macro event or political event occurs the shorters win?
Cause its almost a certainty one of those events will trigger the crash the when is the question, and if it doesnt give the crash at least the shorters can capitalize on there profit.
Upcoming year:
- Fed + ecb decissions (this week fed)
- Sell in may momentum
- Brexit vote
- Big sports tournements like tour, european cup football, olympics and the likelyhood of terrorists attacks
- Us elections
- Upcoming Opec meetings
And those are only the common sense possible plunges...
I short whit every macro event, i shorted doha oil meeting for exemple because it was logic SA would fail to strike a deal since there hate to iran is bigger then what the market wants/needs.
Crude/brent reached -7% that day and i had a turbo open
.Trading has some logic behind it depending the glasses your looking in to it.
People who follow the markets know that and that strenghtens the trend.
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Exactly, because all countries have created a situation with low rates that created bubbles in stockmarkets and in real estate.
This happened already in past too, but now the situation is different because the economies don't grow anymore like in past. So there will be no plan B anymore. I think will we have a massive crash worldwide in real estate and stockmarkets.
Like in 1929. A lot of money can be made if you will be on the correct side of the move.
There are a lot of corelations whit the great depression.
I am looking at it from a european glass, and its even clearer here.
Economically its kinda similiar, the growing inequality, the increase of disatisfied voters (both extreme left and right is growing in europe (also in the states whit a socialist candidate and a fascist one beeing popular (in the states what???) )...
Anyone remember musolini, hitler, communist parties? they played the victim card during bad economic times!
Paterns! Paterns! Paterns!
And if your not seeing it be ready to lose!
People sometimes ask me why i trade on day-weekly base.
I tell them there stupid if they trade on long term now...
And after i've giving my speech of all of the indicators most stop going long term...
coincidence don't exist. We're all people we all act/react similar during different time frames in history.
Question is are you stockrelated wise on the winner or the loser side!
Reason why i always have 50% of my brokersaccount in cash, defintly while i have long positions open.
"Warren Buffett: Be Fearful When Others are Greedy" keep that in mind, guess where we're at now! Greedy side
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But look at the outcome as a true long term investor, not a long term trader:No one loses! Except passive stockbrokers, active long stockbrokers, consumers, savers (but who cares
When crashed the banks, brokers, and amateur active traders will be the winners and all the good working 9-5 passive long term stock traders will take the plunge after being punished in the real economy there escape route gets punished again.
Ironic isn't it?
If I were stupid and bought S&P at the 1987 peak just before the crash @ $321 and continue to hold it until say the upcoming crash taking S&P down to $1000 again, I am still up ~300% and my dividend yields 2% of today's ~$2080 or ~$40 per index share = ~12% on my original $321 investment. I am "being punished" with a 12% yield on my money. It also beats inflation even after the upcoming crash. So the key is to think really long term.