Wednesday’s sell-off is just a taste of what’s to come…
Pay no attention to what the press has to say. Pay no attention to what the Fed has to say. All is not well. I said the same thing before the subprime and housing fiascos, the Dow collapse to 6,500, and the UK economic collapse.
No one trusts this market. Volume is very low. Traders are still on the sidelines. And the billionaires are running scared.
Warren Buffett – who is now complaining about ‘disappointing performance’ in companies like Johnson & Johnson, Procter & Gamble and Kraft Foods – has been drastically reducing his exposure to stocks that depend on consumer buying habits.
Considering 70% of our economy relies on consumer spending, that’s worrisome, to say the least.
John Paulson – who made a fortune betting on the subprime disaster – is selling, too. His hedge fund just dumped 14 million shares of JP Morgan, for example, as well as positions in Family Dollar and Sara Lee.
George Soros just sold massive positions in bank stocks, including JP Morgan, Citigroup, and Goldman Sachs.
Just why are these guys selling in one of the biggest rallies we’ve ever seen?
Because even they know the truth… They know the market rally based on easy money printing has run its course.
We’re not recovering. We’re far from it.
The press can try to convince the sheep otherwise, but I’m not buying it. I never have. And I never will. I’m interesting in making money for myself and for readers. I’m not interested in following the sheep off the edge of the cliff. And neither are these billionaires.
Tell me this.
If our economy is doing so well, why are retailers closing their doors?
Best Buy is forecast to close 200 to 250 stores.
Sears is forecast to close 100 to 125 stores.
JC Penney is forecast to close 300 to 350 stores
Blockbuster is closing 300 stores and cutting about 3,000 jobs.
Hasbro may be reducing its work force by about 10 percent.
Wal-Mart is having a disastrous month. The company’s president of finance just said this is “the worst start to a month I have seen in my 7 years with the company.”
Reader’s Digest just filed for bankruptcy.
Atlantic City’s newest casino just filed for bankruptcy.
There’s no plan to solve Detroit’s financial nightmare, and bankruptcy could be around the corner.
The CEO of Town Sports International just said the company is struggling because consumers don’t have “disposable income” any more.
And corporate insiders are selling hand over fist.
Still, the press would have you believe the economy is great.
What will the press say when millions of federal workers face painful furloughs?
As long as things look okay, that’s good enough. Right?
No… not any more.
I’m not a pessimist by nature. I’m a realist. And I’m tired of watching Wall Street railroad Main Street over and over again.
So we’re fighting back… We’re making money playing by our own rules at Speed Retirement.
Ian L. Cooper
Speed Retirement System