market ace

Trash Is King: Beware Being Late to the Party

This dose of reality is badly needed and should be heeded - but

What is an investor to do for the longer term? I agree with the ride the current market and use trailing stops and I have and am doing that, but there is also a false side of the coin that may keep the whole house of cards afloat for longer than people think and then their losses in the stock market will be even more terrible, but not near as bad as what their gov't is doing under their very noses.

The falling dollar will soon crush Americans and especially retirees. In the meantime it makes US stocks and commodities look cheap to foreigners, will falsely boost corporate earnings for international companies and cause many to flee cash driving markets even higher. All of this will prop up markets and make it look like everything is wonderful even while the US dollar is dying and every US citizen will pay a big price in the end as false values are created but purchasing power actually drops.

While protecting ones self from the stock market one must also be taking great care to protect against massive "inflation" from dollar deflation. The rest of the world has lost all faith and trust in the US and will take it out on the currency. The dollar may be getting some boost now from being the new darling of the carry trade, but that too cannot last. There are also foreign forces that would like to kill the dollar and they just may get their chance as the reckless US Gov't and FED defy all logic with their current economic policies.

Beware of a crashing stock market, but more afraid of what a major devaluation of the US dollar, which could happen over night, will do.