Hi,
WHAT A MONTH!!!!!!!The stock market yo-yo dance is concerning to all investors so I want to attempt to impose some economic reality!!!!!!!
When this blogger was a young lass (some many years ago!!!!!!) a gentleman named Pop Jarrett introduced and instructed his naive friend on the STOCK MARKET. Hearing about BULLS AND BEARS, was concerning and caused the WONDER of the HUNT?????
He was very wise to the mysterious BOBBING OBJECT called the market SINCE HE HELD A SEAT ON THE STOCK EXCHANGE AND KNEW THE INS AND OUTS. A very lucky education. One of his first pieces of advice is still GOOD today. If you make 6% overall return in a year on your portfolio--YOU'RE A WINNER!!!!!!!!!!!
He attempted to buy wisely after investigating the stock completely (OF COURSE he never forgot that the BEST IS TO BUY LOW (the BEAR MARKET)--SELL HIGH!!!!!!!(THE BULL MARKET) RIGHT???????) and did not let the strong tides of the market affect his STABLE STOCKS.(called BLUE CHIPS in those days) He also bought some INVESTMENT GAMBLES (only about one-tenth of his portfolio) and tried to sell before they WENT DOWN IN FLAMES in a Bear Market. All good advice for then and now.
HE ALSO said THAT THE STOCK MARKET WAS NOT FOR THE FAINT HEARTED!!!!!!!!! Being a neophyte and faint hearted, it was advice well taken. His instructions also included for Stock Market buyers the ADVICE TO BUY GOLD AS A HEDGE AND IF THE MARKET'S GOING UP AND DOWN RAPIDLY BUY SILVER AS WELL. BELIEVE ME THE MARKET HASN'T CHANGED MUCH!!!!!!!!THE ADVICE IS AS GOOD TODAY AS IT WAS THEN!!!!!!!!!!!
One thing to remember is what the numbers on the STOCK MARKET REPRESENT. When this advice was given the MARKET WAS 800 POINTS ON THE DOW-JONES AVERAGE!!!!!!!!! That's right 800. NOT THE 14,000 IT HAD BECOME BEFORE IT WENT DOWN IN THE FIRST RECESSION.
Now think about this: If the Dow-Jones 800 point average CLIMBED TO 14000 POINTS in the twenty-first century, then there is another FACTOR TO BE CONSIDERED!!!!!!!!! HOW MUCH HAVE PRICES RISEN since LET'S SAY 1981 WHEN THE STOCK MARKET WAS AT 943 points ???????????? Well, an ECONOMIC RULE OF THUMB IS 10X. If prices are INFLATED (10Xlb.butter@.49 = $4.90) then doesn't it stand to reason that the market would REFLECT THAT INFLATION??????????
OKAY LIKE JOHNNY CARSON USED TO SAY ABOUT COMEDY "You buy the premise, you buy the bit"!!!!!!!!!! and ISN'T OUR FINANCIAL STRUCTURE "COMEDY"??????
SO FOLLOWING THE 10X logic the 943 MARKET SHOULD REFLECT AN INCREASE to 9430 POINTS and anything above that amount would BE RISKY "TERROR"TORY which puts a NEW LIGHT ON THE NUMBERS. When the market falls BELOW 9000 MIGHT BE THE TIME TO START WORRYING IF you are INVESTED IN ALL THAT CLOUDY SKY OR TRICKY VENTURES THAT DRIVE A MARKET TO HELL AND GONE!!!!!HIGH!!!!!!!!!!
The STOCK MARKET IS ONLY A REFLECTION OF WHAT INVESTORS ARE DOING AND BELIEVING!!!!!!!! A NEW VENTURE OR MULTIPLE VENTURES thought to be TERRIFIC can enter the game QUICKLY THESE DAYS,BE BOUGHT BIG,be reflected in positive numbers AND RISE. THE SAME STOCKS can turn sour RAPIDLY, lose followers and BE SOLD BIG AND FALL. SINCE THESE STOCKS ARE BOUGHT AND SOLD AT THE CURRENT 10X INFLATED DOLLAR, BIG NUMBERS BECOME STANDARD INFORMATION TO THE FOLKS FOLLOWING.
Of course, current investors are buying at these prices and they're losing at these prices if not wisely invested BUT that does NOT MEAN THAT THE MARKET IS COLLAPSING!!!!!!!!IT IS SIMPLY REFLECTING THE REALITY OF THE BUYING AND SELLING OF INVESTORS AND THEIR THOUGHTS ON WHAT IS HAPPENING FINANCIALLY, POLITICALLY, AND ECONOMICALLY.
Unfortunately REALITY is not well accepted these days in any field let alone the STOCK MARKET. OBVIOUSLY OUR POLITICIANS ARE HAVING TO FACE REALITY CHECKS THESE DAYS AS THEY FACE THEIR DENIAL OF INFLATION!!!!!!!
A factor in the AMERICAN STOCK MARKET that many citizens are not taking into consideration is that IT IS NO LONGER THE ONLY GAME IN THE WORLD!!!!!!!!!! Stock Markets have popped up all over the world as OUR CAPITALISTIC SYSTEM has begun TO KICK COMMUNISTIC BUTT elsewhere on our planet!!!!!!!!! AND WE HAVE TO FACE THE FACT that COMMUNISM GOES DOWN HARD!!!!!! There are many classes of MONIED FOLKS INVOLVED IN MANY MARKETS and a little MANIPULATION is not BEYOND THE ABILITIES, SKILL AND IMMORAL TACTICS OF THOSE WHO HOLD THE POWER. POWERFUL COMMUNISTS understand that MONEY WIELDS POWER in spite of all their rhetoric about not seeking money or power!!!!!!
And making the whole scenario even more complicated is the reality that people all over the world can now buy stocks and bonds through ON-LINE FIRMS THAT EITHER CHARGE LITTLE OR NO FEE and these BUYS AND SELLS THOUGH SMALL ARE VOLATILE and often based on little or no expertise other than OOPS--THERE GOES MY MONEY!!!!!!!!!! SELL...SELL...SELL!!!!!! The more small investors appear on OUR STOCK MARKET buying on the INTERNET with little knowledge, the more VOLATILE OUR STOCK MARKET (AND OTHERS) ARE LIKELY TO BECOME!!!!!!!
THE MESSAGE TODAY is that ALL INVESTORS MUST APPROACH ANY STOCK OR BOND MARKET with REALISM!!!!!!!!!! HO-HO-HO!!!!! THEREIN LIES THE COMEDY!!!!! Much of the world and its inhabitants have lost touch with that ILLUSIVE FRAME OF MIND. AND THIS LOSS OF REALITY ABOUT FINANCIAL CONCERNS LEADS TO OTHER PROBLEMS SUCH AS THEY HAD IN LONDON THIS WEEK.
The riots in LONDON although SHOCKING should have been anticipated. WE ARE GIVING OUR YOUTH THE IDEA THAT IT IS THEIR RIGHT TO ........HAVE IT ALL.......!!!!!!!!!! WITHOUT RESPONSIBILITY OR MORALS. SO WHEN THE ECONOMY TANKS AND THE STOCK MARKETS GO INTO BEAR MODE and their PARENTS REFLECT FEAR AND FAMINE....THEY THINK THEY HAVE A RIGHT TO TAKE WHAT THEY WANT BY FORCE.
WAKE UP FOLKS!!!!!!THE ENEMY IS LIVING IN YOUR OWN ABODE!!!!!!!TAKE THAT CELL PHONE AND PUT IT AWAY UNTIL THEY COME OF AGE. Don't expect them to UNDERSTAND a REALITY that ADULTS CAN BARELY COMPREHEND. Don't expect them to show a RESPONSIBILITY BARELY TAUGHT; GENEROSITY LIKE MOST GOOD TRAITS can become misused and CAUSE POOR MORAL HABITS. MODERN MORALS are THESE 5R'S: REALITY, RESPONSIBILITY, REMORSE, RALLYING AND RIGHT ACTIONS!!!!!! Not Rumbles, rampage, radicalism, rape, and ransacking. TEACH YOUR KIDS AND GRAND KIDS THE RIGHT 5R'S!!!!!!!!
CHEERS, CONNIE
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