Stock market red flag

Despite the massive Bond buying by the Fed, they have failed to prop up the Stock market, the Bond buying in all previous times has worked, but today despite massive influxes of money into the Bond market ,it has failed to prop up the stock market. The Yield curve is flattening and any player should take note. It might not be heralding the big correction to fair value, but is a good indicator to leave the table and get a coffee.

a reply to: anonentity

There is NO market into which money can flow without end. The game must end, or at least, correct itself.

didn't the Fed just raise interest rates for the first time in a decade?

I've been waiting for the real estate market to crash since election day.

they'll take the whole economy down, I just thought it would have happened back in August.

I predict there will be no calamity while Trump is President. The entire four years.

a reply to: lordcomac

didn't the Fed just raise interest rates for the first time in a decade?

Third time this year!

Which is why the real estate market did not crash. The fear is that consumers wont come back with credit cards in hand.

originally posted by: Plotus
I predict there will be no calamity while Trump is President. The entire four years.

Do you mean four years, or for as long as he 'remains' in good standing?

originally posted by: Plotus
I predict there will be no calamity while Trump is President. The entire four years.

Quantitative Easing , full steam ahead.

Count on inflation, shrinkflation, conflation, and deflation of your value getting worse, too.

crypto is about to go nuts

I predict smooth running all the way to the next election, without difficulties. Everything remaining relatively static. No turmoil, no discernible corrections, no drama, without any predicted calamities.

Barring full out war with North Korea.

With all the money going into bitcoin the banks have nothing to play with.
They can't fiddle the numbers as well now.

In years where there is a healthy stock market gain historically there is corporate window dressing where large investment companies buy a lot of stock at the end of the year. Its all globally related Hong Kong raised rates in step with the US, the UK has Brexit and inflation to deal, so the concern over near term interest rate jumps is just now starting to factor into their markets.

I think these bubbles breed risk takers and gamblers because there is no way to win with conservative investing strrategies. In 2015 even the diversified approach didn't work, stocks fell more than bonds and precious commodities gained. It was a good time to own a house though.

a reply to: TEOTWAWKIAIFF

It's already crashed.

The economy crashed in 07. It has not been fixed. The problems have been papered over.

The housing bubble that burst has never been repaired and the bubble is about to pop.....again!

I have bailed on the mkt. Except for a few Ag/Au futures.

Inflation....wait till the war starts!!

originally posted by: UKWO1Phot
With all the money going into bitcoin the banks have nothing to play with.
They can't fiddle the numbers as well now.

There's not that much money going into bitcoin. Currently at $300B total value, compared to around $8T for gold and who knows how many trillions of USD.

It's a lot, but it's nowhere near a significant percentage.

originally posted by: anonentity
Despite the massive Bond buying by the Fed, they have failed to prop up the Stock market...

The stock and bond markets are two different things, why would buying bonds 'prop up' the stock market? The stock market is doing well versus the bond market and should continue to do so for the foreseeable future, particularly if this Republican tax plan goes through.

a reply to: olaru12

Gold historically slides 20 years or more between major peaks.

www.macrotrends.net...

So unless we get some global inflation soon that breaks that pattern it will likely be a drag on your portfolio.
Housing prices are slowing but landlords are doing very well renting in most areas due to lack of new construction.
One thing that might prevent the stock market form continuing on towards 100,000 is that the traditional investor base is aging and many are approaching the age where they may need to pull funds to cover retirement expenses, medical bill exposure etc.

Anyone know the investor age statistics for crypto currencies?

Bitcoin looked risky at $1000 to many, but that is because they couldn't predict the buyer base.
What if Millennials value the low costs and overheads associated with bitcoin trading, they may even understand the low load startup potential better than older investors?

when public consensus is to sell and get out the exact opposite occurs because banks and hedge funds are looking how to buy cheap.

Suckers are selling and bankers are buying.

When your encouraged to buy by the msm and investment brokers is when you need to worry because bankers and hedge funds need some poor sucker to sell to.

Bitcoin is going to go down in history as the biggest financial fraud ever IMHO .

a reply to: one4all


Looks like something is definitely up with regards to the Bond market, attempts to prop it up failed which led to a flattening of the stock market, plus some really big players have cashed out of Bitcoin