The Fed continues to buy bonds at the rate of $85b per month to keep interest rates down, printing money to do it. One of the important reasons for that is that if treasury bond interest rates climbed to normal levels the US would be even more bankrupt that it is today. Reviewing a chart of TBF – ProShares Short 20+ Treasury – shows all was fine until late last year and through April this year the market the Fed programs were working. Long about April the market started ignoring the Fed and sending rates up and bond prices down.
Also this last week the Congressional Budget Office said the current rate of federal spending will produce an unsustainable buildup of debt. http://www.nytimes.com/2013/09/18/us/congressional-budget-office-predicts-unsustainable-debt.html?ref=business
One of the other sources on the problems ahead is Stan Druckenmiller.
www.businessinsider.com/stan-druckenmiller-on-generational-theft-2013-9?op=1
So when the world finally realizes our dollars are no good, the “good” times will end and the market will die. In the meantime if you are not investing every thing you can and ready to get out immediately you are planning to be a victim. You might also review your current investments and suggest the same to your relatives. One older lady I met this year has over 1/2 million dollars invested in a tax free money market account on which she made $8 last year. I suggested she talk to her other broker about investments.
One of the other sources on the problems ahead is Stan Druckenmiller.
www.businessinsider.com/stan-druckenmiller-on-generational-theft-2013-9?op=1
So when the world finally realizes our dollars are no good, the “good” times will end and the market will die. In the meantime if you are not investing every thing you can and ready to get out immediately you are planning to be a victim. You might also review your current investments and suggest the same to your relatives. One older lady I met this year has over 1/2 million dollars invested in a tax free money market account on which she made $8 last year. I suggested she talk to her other broker about investments.
Chuck Jaffe in one of his internet Moneylife shows talked about a study from a site called datagenetics of 3,400,000 credit cards which had been stolen and for which the pins were now known. Seems every one of the 10,000 possible combinations had been used but 10.7% of pins were 1234. 6% used 1111. 2% used 0000. 26.8% of all passwords could be found by using the 20 most popular pins. 1004 is the sixth most popular and spoken in Korean is the Korean word for Angel. The 22nd most popular was 2580 – the vertical center line on a telephone. His point was make them harder to guess.The sum of the deviations (839,997,899) is not up for the last two weeks – not time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up – not time to invest.My current investments:
SAutomotive has a price of $54.79, a sell price $52.05, a relative rank of 03, and is a hold.
SBiotechnology has a price of $176.20, a sell price $167.39, a relative rank of 01, and is a hold.
JapanSmallerCompanies has a price of $14.21, a sell price of $13.50, a relative rank of 02, and is a hold.My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up – not time to invest.My current investments:
SAutomotive has a price of $54.79, a sell price $52.05, a relative rank of 03, and is a hold.
SBiotechnology has a price of $176.20, a sell price $167.39, a relative rank of 01, and is a hold.
JapanSmallerCompanies has a price of $14.21, a sell price of $13.50, a relative rank of 02, and is a hold.My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 60% invested