Is this the future in the Market (bonds, IRAs, mutual funds)

[BLUEDIAMOND64]

I received this as an email today and was wondering what people thought.

I don't expect anyone to listen to me, but I felt I must share my thoughts on the "market" with you. If you have any control over your invested money, (stocks, bonds, mutual funds, gold or silver, 401k, or an IRA ) you need to switch it all to something that is more secure. I recommend money market accounts or maybe some good short term treasury accounts and cash. Sell all your stock(s) and get out of any mutual funds you might be in.

I believe that the Dow industrial will fall over 7, 000 points (from 10K) to around 2,450 or so, and the S&P to drop to about 250 (from 1K) , and the NASDAQ to around 575, (from 2K) in the coming months. and then after a short rally, they will drop again to lower lows. The depression of the 1930's will have been milder than what is coming very soon.

The dog and pony show(s) going on in Washington are not going to affect the stock market in any positive manner, regardless of the lies coming out of DC. The dollar will continue to rise, against foreign money, which will trigger a deep dip in gold and silver. The devastation will be world wide. Many banks will fail and file for default and there may be "bank holidays" like in the 1930's. Home prices will deflate, and more and more foreclosures will continue. The actual unemployment rate is much higher then is being released and that is over 10%. I believe it will be twice that number soon.

History is my basis for these statements. I don't expect you to concur with me, I probably wouldn't either, but you might re-think any risky investments
you might be making and to be conservative in the near future until you start to see what I'm telling you is true. We won't see the Dow rise to these present levels again in a very, very long time, if ever.

Good luck to us all.

[Moonwalkr]

It's true. My knee aches and every time it does that the market drops.

[chet everett]

Yep, CIVILIZATION itself has peaked right now on Nov. 8 2009. NEVER going to get better. Don't merely get into money market accounts (can't you folks even remember back 10-11 months ago when some "broke the buck? sheez!) get out of anything that ain't either good for eatin', shootin' or bartering. I like pemican, bullets, and glass beads, in that order.

For cripes sakes this is stuff is so predicatably hilarious that I can't get enough of it.

When the unemployment gets to 100% the odds of these posts getting delivered really falls off as some one has to keep the servers spinning

[subsound]

Anybody who tells you they actually know the future for a fact is either mentally ill or trying to sell you something.

Since it doesn't try to sell you anything, there is only one other option.

What the writer fails to realize is that if the economy collapses, treasury instruments and money markets will be worthless just as much as mutual funds. If they really believe that they should stockpile gold and ammo.

The same thing has been said every month for the last 2 years, and you can see how well each one of those predictions have done.

[treasurekidd]

Yeah, I finally get to use the bunker I built in my yard and filled up with surplus MRE meals for Y2K! I was beginning to think I'd never find use for it!

Tell you what - I'll help you with those stocks and mutual funds. Whatever you've got, I'll give you 75cents on the dollar. More than enough for a long supplyof food, booze and ammo. )

[lumbollo]

Well this one is easy. Stocks are going up fast because The Fed has made the cost of money = 0%. It's a bit unprecedented in our history but it is how they have decided to avoid dealing with all the economic problems that exist in the USA. Now realize they only way The Fed can do this is to increase the money supply to historic levels, in the old days printing money, and people looking for returns have no choice but to head to equities.

They can't keep it up forever however because the dollar is being turned into a junk currency and the Fed is getting a lot of pressure from the other central banks to raise rates. If you are playing the short term market fine. You like to gamble and it's a way to make some money. When they are forced to raise rates however you better get out while you can. The carnage is going to be terrible. Unexpected bad news will trigger it too. There is no long term confidence in this market as demonstrated by the stratospheric rise in the price of gold, so any little thing is going to cause a buffalo stampede out of there.

[Teak]

Originally Posted by lumbollo

Well this one is easy. Stocks are going up fast because The Fed has made the cost of money = 0%.

And Mr. Obama sends Mr. Geithner overseas to tell Asian investors that the U.S. believes in a strong dollar policy. Hahahaha...of course everyone knows that it is a story to keep the Asians buying U.S. Treasuries.

A strong dollar policy requires higher interest rates, but that won't happen until all of Geither's and Obama's buddies (and campaign contributors) have been saved from their risky investments of the past few years.

That Goldman $achs is making record bonus payouts is enough evidence of the collusion between Wall $treet and the U.S. Gov't.

[Oildog]

^^Yeah, no coincidence GS has record profits...not too bad most of the competition was swallowed up.

[Timothylogan3]

If the dow were to fall by 7000 points then the entire freakin cake will crumble to nothing. Money markets would also not be spared. Anyways where did you get this info? I mean can you please support it? I am really curious.

[mysticaltyger]

Originally Posted by BLUEDIAMOND64

I received this as an email today and was wondering what people thought.

I don't expect anyone to listen to me, but I felt I must share my thoughts on the "market" with you. If you have any control over your invested money, (stocks, bonds, mutual funds, gold or silver, 401k, or an IRA ) you need to switch it all to something that is more secure. I recommend money market accounts or maybe some good short term treasury accounts and cash. Sell all your stock(s) and get out of any mutual funds you might be in.

I believe that the Dow industrial will fall over 7, 000 points (from 10K) to around 2,450 or so, and the S&P to drop to about 250 (from 1K) , and the NASDAQ to around 575, (from 2K) in the coming months. and then after a short rally, they will drop again to lower lows. The depression of the 1930's will have been milder than what is coming very soon.

The dog and pony show(s) going on in Washington are not going to affect the stock market in any positive manner, regardless of the lies coming out of DC. The dollar will continue to rise, against foreign money, which will trigger a deep dip in gold and silver. The devastation will be world wide. Many banks will fail and file for default and there may be "bank holidays" like in the 1930's. Home prices will deflate, and more and more foreclosures will continue. The actual unemployment rate is much higher then is being released and that is over 10%. I believe it will be twice that number soon.


Good luck to us all.

I don't know if the stock market will fall 7000 points nor not, but it's never out of the question. People make a big deal about the actual unemployment rate being more than the stated rate. That is ALWAYS true, in good times, and bad.

That said, I think a recent piece from the New York Times about the debt problem in Dubai describes the situation well:

I particularly like this excerpt:

...... pumping trillions of dollars into the global financial system did create at least one unavoidable side effect: many of the excesses of the boom years were never quite worked off.

Thanks to low interest rates and other recent policies to support the real estate market, houses in this country are not especially cheap today, compared with incomes or rents. They're just no longer ridiculously expensive. Stocks were briefly inexpensive last spring, but they are now more expensive than they have been for most of the last 60 years, relative to corporate earnings.

dubai-quake-brings-no-collapse: Personal Finance News from Yahoo! Finance

I personally sold most of my stock mutual funds in September and have almost all of my employer sponsored retirement plan in a "stable value" fund. I still have some stock funds in some IRAs and a small amount in non-retirement accounts. Of course, if we have a major crash, it's always possible it won't matter where you put your money.