So many people keep calling for a stock market crash. At the same time, it has hung on to the 18000 level in the Dow for dear life.
Do you see such a devastating crash as even possible?
No possible way.
Retail participation is at near record lows. It has just started to lift begrudgingly. Even the Gallup poll on Americans shows the same thing. Retail participation is at best 55% down from 65% in 2007. Liquidity, however, is still off by 50%.
This does, however, introduce the likelihood of Flash Crashes and Flash Rallies.
Such events are by no means because of a pending major crash. Just where do you put money if bonds are dead and banks a questionable? Owning some gold etfs with some dividends will help, but the market is the overall answer,
It is the volatility I spoke about that would start in late 2015 and last through the elections. So, buying flash crashes may work out well in the long term for you. But, keep in mind that this is the Year from Political Hell.
Brexit was the first election. The second election will be the USA and it is clearly a contentious race with the Bush family saying they will vote for Hillary proving that they too would screw the country to save the political status quo. This is like Obama going to Britain telling the Brits if they vote for BREXIT, screw you, get to the ‘back of queue‘ for the USA will prefer dealing with the French and Germans than British.
Follow the arrows and do not concern your self with emotional up or down days or weeks. Stay the course and if it drives you crazy, do not watch the "sporting market news"!
I will keep you posted.
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