Beware the "Tower of Babble"
Today the "Tower of Babble" isn't located in Babylon but rather on Wall Street. That's where economists and analysts put on a serious air and
explain to us plebs what's about to happen with the economy, currencies, interest rapes, commodity jargons, and the stock market...that stands as a
solid foundation on a layer of Quicksand.
There's an almost perfect correlation between the specificity of an analyst's forecasts and the chances that he's giving useless and dangerous
advice to make you jump into the River for a swim with the Crocodiles.
If he says something like, "The market has broken through its 50-day moving average and will begin testing new lows this week."
Translation:
Here's what I get when I read my tea leaves, deal my tarot cards, and gaze into my missing balls.
But if he says, "Expect the S&P to hit 1,210 before rebounding to 1,350 and then finding support at 1,970," run.
Translation: I am wearing a
sandwich board that says, "I haven't the foggiest notion what I'm talking about."
The Signs are there for a Market Crash
The Great Stock Market Crash of 1929 marks its 75th anniversary with the usual questions of could it happen again, yes.....The Signposts are there,
you just have to observe them.
Watch the Signs : The worst day in market history didn’t occur in the 1929 crash, but in more modern times on October 19, 1987 when the Dow
dropped over 500 points, as the buying panic rose, complex computer programs kicked in and began issuing more sell orders. Known as programmed
trading, these automated systems added fuel to the fire. When the dust had settled, over $1 trillion in value had disappeared from the market and this
February, investors witnessed a drop of $583 billion in U.S. market wealth.
On Feb. 27 of this year, a 9 percent market sell-off in China sent ripples of fear through stocks markets across the world. In the United States, the
Dow's one-day plunge of 416 points was the steepest decline since the market opened after Sept. 11, 2001.
So the question is: Should stock investors be worried? As you might expect, some say yes and some say no....
What do You SAY ? Fact : the stock
market has been experiencing a long, slow crash for years now and the time has approached for the Bell to Ring !!!
"You need to understand value more than Price. Just because the Price of something goes up doesn't necessarily mean the value has gone
up."
"If Prices go up without a corresponding increase in value, it means the value of the asset has actually gone Down."
When the purchasing power of gold is compared to the purchasing power of the Dow, the Dow appears to be crashing.That means the average investor will
need at least a 15 percent annual return on their stocks or mutual funds just to stay ahead of the U.S. dollar's purchasing power erosion -- that is,
just to break even.
Beware the "Tower of Babble"
image source: http://www.20nine.com/famous-infamous-29s/i/poster-infam-stock.gif
[edit on 17-7-2008 by Dubyakadubla]
[edit on 17-7-2008 by Dubyakadubla]
