he is a smart guy, pro business and pro small government. All really good things. But he has always been talking about the Fed Reserve.. for 20 years... because he is a small government type of person, and an agency like the Fed is not anything he likes, so he tries to scare people into minimizing the roll of the Fed. As much as all this talk about printing money, and the US dollar becoming worthless.. it is all relative, because in the past few days, the dollar has strengthened greatly.. and has always held up against major currencies. The amount of money we are printing is a tiny portion of what is being held by foreign goverments. They suffer more than us when we print money.
Is this discussion derived from his current ad "I have returned to Washington, we (his "friends") have a prepared a important message" airing on some of the business and news channels?
Bull markets don't last forever. Sooner or later, things always reverse themselves for at least a while. I just hope the next one isn't too bad. I'm a big boy, I'm always pretty well hedged, and always have at least a few shorts here and there and some cash. But the small long-only retail investor always gets crushed when the bear markets rear their ugly heads.
I would say in general yes we are forming a bubble. I think we are at a fork in the road right now. If they raise interest rates now I think market will take off initially but then completely crash. Most people are not really prepared for this switch from a financially based economy to a commodity based one. That is too bad because it is coming sooner rather then later. It think the hard thing will be the switch. Most will hold on saying "it will come back" or "it survived last time" and my all time favorite "things are ok". Look if what I think happens , happens. We might be in some serious trouble in this country. I hope not but we are talking creamed corn and shot gun shells if certain scenarios work out they way they are doing as we speak.
The old saying 'art imitates life" comes to my mind, nothing stays the same forever. If I am to take my cue from "Life" what I am seeing in this area in large communities is that the resources for the day to day are running dangerously low. I just sat through three different communities hashing out their annual budgets and only one was anywhere near wise. Sadly the infra structure in many places in this country are in poor shape and this takes money to fix, it all has to come from somewhere, and when the bills come in someone else will take a loss. That's the idea behind economics. I would expect to see building increase but a decrease in consumer spending in luxury items, vacations etc. the non-essentials as focus becomes more brick and butter. To bad this has a serious ripple effect thru the market. Top this all off with increases in minimum wages in most states, you can almost be certain things will get volatile in the market.
HA! Truer words were never spoken. I'm down with Ron Paul, I'm just not sure about his son. I think he's trying to take the middle-of-the-road approach so it doesn't appear to be wacky like his dad. It's too bad, because with that approach, people won't even remember his name in six months.
Well, I guess we will just have to wait and see. Many pundits have been predicting a stock market collapse for years. Personally I dont know that we can take them all seriously. However, pulling money out based on predictions is just what we dont need to be doing
I find it concerning that the labor market remains soft, growth has been anemic, government spending and debt is at apocalyptic levels, and there is serious trouble abroad (e.g., China's meltdown, European rumblings, etc.). Here's hoping we don't see another 2008-style crash.
There are a million pundits... and thousands of them have been calling a crash, thousands say it will double, thousands say it will be flat. You give me a number of where the Dow will be a year from now, and I can find 100 pundits who say that is exactly where it will be... A thousand monkeys working for a thousand years on typewriters will one day produce Hamlet. The thing people just underestimate is how much the world is connected right now. People can trade anywhere. And there is this thing called ´flight for safety´... which will always be the USA. Nobody is ever going to say ´wow, thinks look rough in the world right now, we should invest in China or Russia´.. When things look bad, the US stock market is where people put their money. The more connected the world becomes, the more safe the US stock market will be.
Yeah, we'll see another "crash" sooner or later - it's inevitable. They happen from time to time, just not usually as bad as '08. We haven't really had much more than a couple of 15-20% corrections in 2010 and 2011. There was the whole tech crash 15 or so years ago, etc. These things go in cycles - bull markets don't last forever. Most investors with a long time horizon should just stay the course - think longterm, diversify, dollar cost average, keep some cash on hand for bargains, etc.
