Baby boomers are learning one of the toughest lessons of aging. Nothing works quite as well when it has been used for a long time.
Having easily done more than 300K trades in my life, I am always amused by all the would be stock traders out there thinking that because they can open an account and click on e-trade, it now empowers them as investment gurus.
The landscape has changed more on Wall Street in the last 18 months than in the last 70 years. Computers and programmers are now replacing complete trading pits and trading rooms. What is left is unemotional program trading,the equivalent of slot machines, waiting for fools to open accounts, turn on their PCs or cell phones and click their money away into "investments"... It's the New Las Vegas and I am surprised we haven't heard ex-mortgage brokers aka ex-pizza delivery boys going into this action. Let's face it, there is supposedly $7.1 Trillion dollars waiting on the sidelines... There must reactionaries who feel empowered by their thinking that because "THEY" haven't lost 50% of their money in the stock market , they are collectively smarter than the people who saw the DJIA hit a 12 year low yesterday and seen their 401K barely able to fund a daily caffeine fix at Blackholebucks...
Well let me give you some really GOOD advice in point form:
- IF you open an electronic account and hope to trade against a person, odds are that you are trading against a machine with no emotion and contrary to you IT makes money on a penny spread
- More stocks fall by 25% or more than stock rises by 20% in a single day in a bear market. This means the odds of having a blow-up are squarely against you
- Hard assets and commodities have a tendency to have higher gyrations when the pie has shrunken by 50% and spreads widen accordingly
CAUTION IS IN ORDER: if you don't have stops, options coverage and hope to pick up some GE like Warren Buffett did at 21.75 , be ready to buy even more at $8...!
Some of the damage I have seen in this market, is extraordinary and thinking you can catch a falling knife is not that great strategy! But every day the talking heads on CNBC, insist a bottom is near, well I tell here and NOW , the market cannot hit a bottom UNTIL AIG is allowed to fail...
Buying PGF.UN at these levels (6.75) after my first return at 10 (ouch), seeing gold hit the 800 before the next rallye, dump silver.
Good trading to you
P.
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A bunch of Keynesian adherant, Nobel prize economist morons have hijacked the monetary system. All they know
is how to print money. Instead of letting the market go through a self-healing process, central bankers continue to use taxpayers' money to bail out insolvent institutions. This tactic has a perfefect historical record: one of failure. It will not work this time neither.
The S&P 500 is down 18.62 percent since the start of the year, its worst two-month start on record.
U.S. stocks have lost $10 trillion since peaking in October 2007.
Hopefully as a superflous reminder, a 25% loss needs a 50% gain to just break even, not counting time lost opportunity cost and accounting for erosion of purchasing power. Which raises the question of what does the 55+ yr crowd
I am fairly confident that IF we start to see 3.25%, that party will probably get nipped in the butt as the FED will probably start to buy 10-yrs directly to keep rates low. Bond vigilantes have been a much hyped thing for over a decade. Now they're dead, only stupid OPM fund managers left.
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