trading

trading

Sunday 24 June 2018

Do you remember 2000 and 2008 crashes ?

We all remember how painful the 2000 and 2008 crashes were. But in both cases, high-earning boomers kept right on pouring their paychecks into the stock market. This fuelled recoveries, and markets clawed back their big losses to achieve new highs.  
In the coming crash, there will be no rich baby boomers to step in and “buy the dip.”  
Instead, they’ll be retiring by the millions… selling stocks instead of buying.  
If you’re “holding the bag” when it all hits the fan, you’re likely looking at what traders call permanent loss of capital. That means you’ll suffer massive losses that you may never make back.  
The math is clear. Total retirement assets in the U.S. are about $28.2 trillion. The vast majority is owned by boomers who’ll soon be permanently retired.  
Do you know how much the entire U.S. stock market is worth?  
Just under $30 trillion.  
I hope the danger is clear to you.  
A freight train is speeding toward us at 200 miles per hour.  
And right now is our chance to step off the train tracks.  
Ask yourself: can your wealth endure a 60% permanent loss?  
Say you have $200,000 invested in stocks. Will your retirement be OK if the value plummets to $80,000 and takes years and years to recover?  
I think that for a lot of us, the answer is “absolutely not.”  
Look, the coming crash will cause financial hardship for those who don’t see it coming.  
But that doesn’t have to be you.  

Friday 15 June 2018

While US stocks look unstoppable, the biggest investment bank in Europe looks to be headed for a crisis.

Deutsche Bank (DB), which has failed to make a profit for the past three years, has dropped to new all-time lows. Everything about DB screams disaster. It has lost a stunning 93% of its value since 2008. It’s laying off staff. And US authorities have put it on a list of troubled lenders. As recently as 2007, DB was the second largest bank in the world by assets. Today it ranks nowhere near the top ten. In fact, its market cap has shrunk to a tiny $20 billion.

Monday 4 June 2018

'The tug-o-war continues.'

The market is faced with three major headwinds: 1) quantitative tightening by the US Federal Reserve, 2) the potential devaluation of fiat within next couple of years, and 3) the potential break up of the EU. This is countered by the near record levels of quantitative easing that continue to flow into US stocks. The tug-o-war continues.