Racket wrote:
Maserati wrote:
Nice to hear someone young using the word retarded when appropriate.
Not sure if that's a dig at me or not but the guy is actually acting like a moron so...
Anyways, I'm convinced the panic is because Wall Street knows something we don't, like how they all knew how over leverged everyone was on CDOs in 2008. I also think there could be a liquidity crisis in ETFs if this keeps up. Look at the number 3x leveraged ETFs that popped up right after 2008. Some serious gambling going on and the house doesn't have near enough money to pay out when everyone wins
Nope not a dig at all.
Riksbank raising rates. Look to other politically stable countries like AUS, NZL, CAN in the future to raise. Might makes right, in a way. 10% off the all-time high, big deal. Very orderly, I sense no real panic. Yes derivatives are the huge key and yes some banks are floated (think DB), and management is in full effect to avoid a 2008-style event...and it is working. If not, it would have happened already.
Gold, yes, int’l miners are scary. Stay far away. I did some work for a miner (not gold) for a while, arctic diamonds. Some good stories.
IMO the Fed knows that inflation is way higher than reported, and not just asset price inflation. Neutral should be at not 2.8 or 3, but 4-4.5. Trump is digging his own grave by pushing fake low unemployment rates (rather than a longitudinally-unmodified U6) and fakely-high GDP he is pumping through record epic gov’t spending, thereby giving the Fed fuel to raise.
Good for the Fed, some brush just might be cleared. Yes 19% down could be a positive because everything is about timing—ie it could be better for the long term, like trimming off split ends, or selectively pruning for higher yield at harvest.
I still think this has been very orderly. Thanks to markets management, nobody can say that they were caught off-guard. This is negative for me, positive for the everyman 401k/IRA. Leaves me a lot of time for research...probably too much time?