Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Wednesday, November 14, 2007

Macro-Eco

If the Target bond Return is 1%-1-.5%

and if you got out of the S&P500 at 10% return.

Ok, let me get to my point.

  • 2-3% inflation
  • 1.5% Return on Bonds
  • 0% return on Savings.
  • maybe a 3-5% return on Stocks this year(with massive risk).

Why would John q public do it...

What is the point in investing in the U.S. This year.....

also if you look at headline inflation at 5%... everyone is losing.

All Risk and No Return.

What I also think is that all this 1 and 2 day volitility is going to pound people out of the market.

This could just be the B leg of a correction on a bear impulse. Or the 2nd leg of a bull impulse.

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