Archman Investor

Four Reasons We're Headed Even Higher

Tack:

Don't think I do not agree with you. I do.
Even with most of my wealth in ROTH IRA's.
Everything is so corrupt in this country now.
Geithner cheats on his taxes, gets a pass. and is made Treasury Secretary.
Average Americans make the same "mistakes" and they are told to pay, put in jails, kids out on the street.
Time is running out for this country. I just think 90% of Ameircans do not care anymore or are to scared to care.

Four Reasons We're Headed Even Higher

At S & P 700 I added to existing positions in a big way. I am an investor who sets my sight on 10 year time horizons. For instance my portfolio is current at 2009 levels while the average American's portfolio is back at 1999 levels. I do not gamble and look for consistent returns over time. I have succeeded thus far.

That being said, back in April I made a statement that the powers that be were going to run this market straight back to 1100 on the S & P simply because they could, and with the help of taxpayer money, by God they did just that.

Though "some" data points have been better than usual the following facts remain and cannot be disputed or rationalized:

Corporate profits were a joke. Decreasing revenue, cost cutting and asset sales are NOT signs of an improving business. Playing the "beat the grossly lowered analyst numbers" are joke and only fools who have CNBC inside their heads are believing it.

Unemployment is God awful and the rationalization that losing 570K jobs last month and 20 million still out of work ( the real number) is an embarrassment.

Consumer spending is not coming back. Not for a decade or more. People had start facing up to that fact. I live here on the north shore of Long Island, New York. It is one of the areas of this country were wealth resides and the power that "really" controls this country lives.
The rich are not spending. Even in some of the most popular and tony towns on the island- there are rows and rows of streets with vacant stores that no long have customers. For rent. For rent. For rent. Consumerism is over, finished. The most people want and care about now are the I-phones and Blackberries. Thats it.

The S & P 500 should be at 750 right now which puts it right at its 25 years continuation trend line dating back to 1978. Of course the markets have gone up and the powers that be can take it to 2000 on the S & P. Hey I am not fighting it.

But by God mark my words:
When those powers that be, coupled with the true acceptance of the population that the consumer is over, done, decide that this market is going to unwind this current government financed stock market bubble, average Americans are going to get destroyed once and for all. Those 401K's that became 201K's in 2008 are going to become 101K's when this is all said and done.

I will of course sell many positions to mom and pop Americans at the highs like you will, (it is the nature of the beast, someone wins and someone loses,) but it is going to be a shame to watch the destruction unfold while Wall Street laughs all the way to the bank.

Monday's Closing Update: Housing, Financials Rally Broader Market

Cetin:

Just to be clear, I am just presenting information for informations sake. I do not mind the market going up. No, not at all.

You are right. The gains are there (though not "locked in") until the sellers drop the prices below where people bought them. Unfortunately for the average mom and pop investor, and as per a very good WSJ article this morning, most people let gains turn into losses and sell out AFTER they have lost a lot of money or sell out right at the bottom.

Unless someone bought near the bottom, or like me, lost only about 15% last year and does not "need" stocks to shoot back to DOW 14K tomorrow, I do not need to chase any rally, and I can afford to look for more than just one or two bits of positively spun news before I commit more money to this market.

Monday's Closing Update: Housing, Financials Rally Broader Market

Psst.
Just to be clear here.

S & P 500 volume was barely half the daily average today.
Considering last week was a minus 5% loss for the index, if todays bounce was real, volume should have been much closer to average or above average to show that people really "wanted" stocks.

Sorry. Just telling you what you need to hear, not what Wall Street and the financial media wants you to hear.

The Financial Storm of the Century

Tom Brown wrote not less than 6 articles in the past month yelling the bottom was in.

He was dead wrong. He lost people a ton.

He should be in jail.

Zero Accountability.

Investors Losing All Their Blue Chips

LMC looks like a disaster as far as the technicals go.

I guess an argument could be made for a speculative buy.

They seem to rake in a lot of cash, yet their net is nothing to write home about. Mining companies tend to be that way.

It's definitely a spec play IMO.
Mad Money, like they say on TV. LOL

Investors Losing All Their Blue Chips

The article best illustrates a major problem with investing.

What is a blue chip? Some made up statement, concocted on Wall Street, as a way to convince people buying these stocks means you own the "best" and they are "stable" and do not go down as much as other "speculative" stocks do during hard times???

HA HA. The joke is on the average investor.

In my 15 years of investing I have never owned a "blue chip" stock.

Here is another of my favorite Wall Street terms: "Most widely held".

Another crock of shit term, that means nothing. It is another talking point Wall Street and the media use to reflect the overall market.

They are all useless. The goal should be to find stocks, of any size, that are making alot of revenue, have good net earnings, and have the ability to exponentially expand their market cap over long periods of time, with as few outstanding shares as possible.