Dave, <<...world economy dependent on growth of the U.S. economy...>>
In my talks with people I always ask them why the USA economy is doing
very good and most respond with a "don't ask why, just enjoy".
Whenever I suggest that one calculate the amount of return needed thru
their stock market investment of mutual funds to cover present and future
needs, most will say that the current return if sold today would do the job.
So I ask them, if a sell today gives you a good return to accomplish your
plans, then why gamble it for more money that will be extra, an over and
beyond whats needed to live at a certain level. Why risk what you can now
have for an extra thats not really needed.
Seems that as long as the stock market continues to make new highs, that
many will just leave their money in it and wait for each correction that
takes it lower to be followed by an upward movement to new highs.
Has been the case so far, and with a "don't ask why, just enjoy" attitude,
a house of cards is present and only a few are in control of it build,
and only they will be able to have the warning to save themselves as
they know the secrets and under the table and cons and dirty tricks
that are the glue and foundation of this house. As for all those others
enjoying the ride and do not want to rock the boat(house), its only a
matter of time, not if but when they will get shafted and cry foul.
gold and precious metals forever
especially doing false highs created by cons
double especially when the real stuff is cheap and not in favor
glad the 20:1 was passed
my number mgr shares, divide by 10, then 1/2
but just so MGR represents real precious metals
not the stuff paper money, make believe wealth, created by governments
real stuff, from the dirt, not a government creation of ink on paper
Doug
(from Le Metropole Cafe)
if the crowd all owns all the same stocks
it may quickly become a race to be the first out the door
when the overwhelming emotion swings from greed to fear
Americans have been living with the fantasy of a new era of limitless,
inflation-free expansion. Adherents claim that the trade-cycle has been
broken, and that growth will be perpetual, propelled by high tec and
productivity gains. Wall Streets' bull-run has confirmed the fantasy and
also developed it. Americans feel wealthy and their spending exceeds
their income. Standard and Poors has expressed alarm that personal debt
has increased for the equivalent of 94% of GDP in 1994 to 130% in 1998.
Some loans are issued against equity - go on a vacation, buy a new car
or buy a hot stock. House sales are booming too... |
