Get your tin hats out – Mr. Market is freaking out

By the time this post is finished, the Dow may have recovered from its current spot in the basement at DOWN 435!!!
Or not.

Before we enter tin hat territory, some advice: 1. Don’t buy any stock. 2. Don’t sell any stock. 3. Sit tight.

Exceptions to this advice: 1. No exceptions. 2. Sell if you need/want a capital loss to balance a gain; or have some companies that you have lost confidence in.

I’m pretty adamant about this, and even more so as Mr. Market seems totally unable even to lift his head, much less get out of bed.

On to tin hat territory – why is the market plunging like this? Don’t believe all the fluff as “analysts” try to come up with reasons. In the wonderful phrase that has just popped up on the Web recently, they are clutching their pearls!

Everything they list as a possible cause has been in place for months or more: China’s weak economy, falling oil prices – $28/bbl today!!!, Fed increase in interest rate – 0.25%??? not a big, market-moving deal, possible inflation, possible deflation.

So, why? Why? Answer: 1. “They” are manipulating the stock market for “their” own nefarious purposes. or 2. “They” are trying to take down Donald Trump. Since Sarah “Barracuda” Palin just endorsed him yesterday, that makes him even more dangerous to ???

Who is “they?” Ans. That’s the problem – I don’t know. Maybe even “they” don’t know!

What purpose? Ans. That’s easy. World domination, bwahahahahaha!!!

Seriously, not knowing “why” really is the problem. Past market crashes have had proximate causes: collapse of the dot-coms, collapse of the real estate market are the most recent ones.

Now, the “they” may become more clear when we see what the Obama administrations proposes, or what the folks in Congress propose.

So, keep a close eye on who proposes what solutions to the current “problem.”



About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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2 Responses to Get your tin hats out – Mr. Market is freaking out

  1. savernation says:

    There are two separate entities that make up each of today’s leading economic countries (including the EU as an entity). There is the political entity that is made up of a elected or self appointed ruling class then there is the economic entity, like our Federal Reserve and in Europe the European Central Bank, that are made up of appointees who are not responsible to voters. In all countries, the economic entity manipulates their currency using various levers that have enormous impact on not only their domestic economy but for the larger entities, the world.

    When I hear analysts blame a specific indicator, like China manipulating their currency, I always ask, what are they trying to keep me from focusing on? The current downturn is curious. Is it that our Wall Street is trying to teach our Fed a lesson and have QE whatever reinstated so they can continue inflating their bubble? Are gas prices lower in an effort by OPEC trying to force US petro industry to abandon their production? (Our cost is about $35/B and SA is $10/B) Heaven forbid is the current nervousness being caused by an increase in Islamic Terrorism that we all know does not exist (sarcasm).

    Sooner or later the curtain will peal back and we will get a peek at which levers have been pulled. (Wizard of Oz). You are right, until then chill…

  2. Good suggestions! We should start a list of who “they” could be. I’m leaning toward a combination of one or two. How about anybody who attends the Economic Summit at Davos?

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