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Link Posted: 10/2/2015 12:29:21 PM EDT
[#1]
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Quoted:


Excuse my ignorance, but.. NIRP?
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No rate hike for sure, but NIRP coming.


Excuse my ignorance, but.. NIRP?



Neg Int Rate Policy


Link Posted: 10/2/2015 12:31:39 PM EDT
[#2]
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Now I know Queevox is right, because his answer to this was the exact opposite of what you said


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That's a funny meme.  

But I happen to think it's not accurate.  IF the Fed's actions were capable of spreading money throughout the economy (like from a helicopter)  it might have succeeded in increasing monetary velocity and inflation.  But that's not how these things work.  The monetary action has consolidated at the top of the food chain.  Only certain asset classes have experienced price inflation.  





This...

When there's relatively few jobs...

And folks are broke...

Where's the INFLATION coming from????


[Mostly for things that are NECESSARY to survive]




Now I know Queevox is right, because his answer to this was the exact opposite of what you said





That's the way Q and I work.

Danged Comprehension...






Link Posted: 10/2/2015 12:34:39 PM EDT
[#3]
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Quoted:


Excuse my ignorance, but.. NIRP?
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Quoted:
Quoted:
No rate hike for sure, but NIRP coming.


Excuse my ignorance, but.. NIRP?



Negative Interest Rate Policy
Link Posted: 10/2/2015 12:37:25 PM EDT
[#4]
And we're green. Had to get those algos fired up.
Link Posted: 10/2/2015 12:39:05 PM EDT
[#5]
We'll have to pay a fee to stay in cash...

Or we can risk it in the Mkt.

THEY want us in the Mkt...  
Link Posted: 10/2/2015 12:40:37 PM EDT
[#6]
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Quoted:
We'll have to pay a fee to stay in cash...

Or we can risk it in the Mkt.

THEY want us in the Mkt...  
View Quote




Or spend it on goods.
Link Posted: 10/2/2015 12:41:17 PM EDT
[#7]
yep


The NIR fee likely won't be much ---at first...

Most will have psych issues paying it...

And -eventually- loose in the Mkt instead


I always [usually] do the OPPOSITE of the...

Sheeple






Link Posted: 10/2/2015 12:46:33 PM EDT
[#8]
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Quoted:
How many have experienced

Stockholm Syndrome

From their BROKER???



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Good question!
I'm married to mine
Link Posted: 10/2/2015 12:47:35 PM EDT
[#9]
The market going green, shows how fucked it is.  Bad news is goods news, very sad.
Link Posted: 10/2/2015 12:53:17 PM EDT
[#10]
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Good question!
I'm married to mine
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How many have experienced

Stockholm Syndrome

From their BROKER???




Good question!
I'm married to mine



Oh KNOW!!!!

Sooo, that's who your SUPER broker is!!!!


You know the rules...

Pix...




Link Posted: 10/2/2015 12:55:19 PM EDT
[#11]
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The market going green, shows how fucked it is.  Bad news is goods news, very sad.
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PPT at work...


Had to get them sobered up to get to going...


BUT--- watch what happens at the close...  


Link Posted: 10/2/2015 1:09:38 PM EDT
[#12]
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Quoted:
We'll have to pay a fee to stay in cash...

Or we can risk it in the Mkt.

THEY want us in the Mkt...  
View Quote


This would be extremely hard to justify, almost bordering on tinfoil territory, but sadly, nothing would surprise me going forward.

Posted Via AR15.Com Mobile
Link Posted: 10/2/2015 1:22:08 PM EDT
[#13]
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Quoted:



PPT at work...


Had to get them sobered up to get to going...


BUT--- watch what happens at the close...  


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The market going green, shows how fucked it is.  Bad news is goods news, very sad.



PPT at work...


Had to get them sobered up to get to going...


BUT--- watch what happens at the close...  





Regardless, this reversal has some pop behind it.


It will make the bulls feel good and give the shorts another opportunity.
Link Posted: 10/2/2015 1:34:21 PM EDT
[#14]
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This would be extremely hard to justify, almost bordering on tinfoil territory, but sadly, nothing would surprise me going forward.

Posted Via AR15.Com Mobile
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Quoted:
Quoted:
We'll have to pay a fee to stay in cash...

Or we can risk it in the Mkt.

THEY want us in the Mkt...  


This would be extremely hard to justify, almost bordering on tinfoil territory, but sadly, nothing would surprise me going forward.

Posted Via AR15.Com Mobile



Why would it be hard to justify?Just some kind of maintenance fee every month on your account.
Link Posted: 10/2/2015 1:48:44 PM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



Oh KNOW!!!!

Sooo, that's who your SUPER broker is!!!!


You know the rules...

Pix...




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View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
How many have experienced

Stockholm Syndrome

From their BROKER???




Good question!
I'm married to mine



Oh KNOW!!!!

Sooo, that's who your SUPER broker is!!!!


You know the rules...

Pix...





OP-SEC Sorry..

Edit to add..
" />
Link Posted: 10/2/2015 1:52:47 PM EDT
[#16]
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Quoted:


in general, are you interested in buying when the market is higher, or when the market is lower?

ar-jedi

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So should I stop dumping the max in my Target Retirement 2045 Roth IRA?


in general, are you interested in buying when the market is higher, or when the market is lower?

ar-jedi



Neither. Whenever I have extra money in my checking around I just contribute it to my Roth. No rhyme or reason to when I do. If I see an extra few hundred that is sitting around it goes into the Roth. Could be weekly, daily, monthly, who knows. I don't choose a time to contribute based on anything other than do I have extra money laying around and if so it immediately goes into the Roth until its maxed out for the year.
Link Posted: 10/2/2015 4:26:42 PM EDT
[#17]
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Quoted:

It's actually kind of comforting

A little certainty in an uncertain world
.

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Bravo!  

It looks like you nailed it.  When you posted that comment the market was what I'd like to call in a "spongy" area.  We moved around between 1894-1904 for about the first hour of trading.  At that point, the day's price action just didn't look like it was going to carry us any lower.   ...so no retest of the 1867-71 level as I kinda had hoped.   Instead we got support in the 1890's, not enough to to call it long-term support, but still worth noting on the chart.  

But your comment probably sums up what happened better than any I, or anyone else made.  I wish I'd paid more attention.  

"A little certainty in an uncertain world"

At least for today we got a little more "certainty".  It looks like it would be very hard for the Fed to raise rates this year...

That pretty much sums it up nicely.  

Link Posted: 10/2/2015 5:03:37 PM EDT
[#18]
This past week saw the markets retest its lows. So far, those lows have held for now but the deterioration in market internals suggests that the danger is not over as of yet.  
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Link Posted: 10/2/2015 5:05:09 PM EDT
[#19]
so every bit of the news was bad but everybody was all jacked up on a sugar high from hearing that interest rates wouldn't be rising soon and therefore we had an up day?

so can kicking, party today and we'll worry about this shit tomorrow kinda thing?

Link Posted: 10/2/2015 5:12:32 PM EDT
[#20]
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Quoted:
so every bit of the news was bad but everybody was all jacked up on a sugar high from hearing that interest rates wouldn't be rising soon and therefore we had an up day?

so can kicking, party today and we'll worry about this shit tomorrow kinda thing?

View Quote



Bad news is good!
Link Posted: 10/2/2015 5:54:11 PM EDT
[#21]
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Quoted:



Bad news is good!
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so every bit of the news was bad but everybody was all jacked up on a sugar high from hearing that interest rates wouldn't be rising soon and therefore we had an up day?

so can kicking, party today and we'll worry about this shit tomorrow kinda thing?




Bad news is good!




Well, we can spin it to fit anyway we want...





Link Posted: 10/2/2015 6:19:52 PM EDT
[#22]
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Quoted:



Why would it be hard to justify?Just some kind of maintenance fee every month on your account.
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Quoted:
Quoted:
We'll have to pay a fee to stay in cash...

Or we can risk it in the Mkt.

THEY want us in the Mkt...  


This would be extremely hard to justify, almost bordering on tinfoil territory, but sadly, nothing would surprise me going forward.



Why would it be hard to justify?Just some kind of maintenance fee every month on your account.


Because you would be paying a fee to essentially loan the banks your money. That's not how loans work.

Posted Via AR15.Com Mobile
Link Posted: 10/2/2015 7:20:22 PM EDT
[#23]
It took about 15 months for the crash last time, from the top to the bottom.  




Link Posted: 10/2/2015 8:44:19 PM EDT
[#24]
So maybe this Monday?
Link Posted: 10/2/2015 9:10:55 PM EDT
[#25]
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So maybe this Monday?
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We had a critical test of a significant over 200 point increase in one day, today.

My technical analysis suggests, we are due for a retracement rise of 60% --AGAIN...

200/60 =3 [rounded]

So on Mon, Tue, or Wednesday.






Link Posted: 10/2/2015 11:04:26 PM EDT
[#26]
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Bravo!  

It looks like you nailed it.  When you posted that comment the market was what I'd like to call in a "spongy" area.  We moved around between 1894-1904 for about the first hour of trading.  At that point, the day's price action just didn't look like it was going to carry us any lower.   ...so no retest of the 1867-71 level as I kinda had hoped.   Instead we got support in the 1890's, not enough to to call it long-term support, but still worth noting on the chart.  

But your comment probably sums up what happened better than any I, or anyone else made.  I wish I'd paid more attention.  

"A little certainty in an uncertain world"

At least for today we got a little more "certainty".  It looks like it would be very hard for the Fed to raise rates this year...

That pretty much sums it up nicely.  

View Quote


That's a fair bit more credit than it deserves.  


But I'll take it


Link Posted: 10/3/2015 10:07:04 AM EDT
[#27]
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  



Link Posted: 10/3/2015 10:35:47 AM EDT
[#28]
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Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  



View Quote



How much has ZIRP stimulated the economy?

How much more have people spent that they wouldn't have if interest rates were higher?

As a saver and someone that saves up to buy what they can afford,I'm all for higher interest rates.I just wonder if it will tighten peoples spending if it starts going up (I know it wouldn't go up by much).


Either way,we have a front row seat to this mess.
Link Posted: 10/3/2015 10:55:18 AM EDT
[#29]
NIRP will be an absolute disaster for housing in terms of massively inflating the already massive housing bubble that has been re-inflated, which means an even bigger eventual bust.

We just stopped our efforts of the past 1+ year to build a new house.  Prices have started to go crazy again in the past 12-16 months and with this recent turn of events in the equity markets, we've decided to just stop all together, as our current house pays us (i.e. is paid for).

Other things we've noticed regarding housing:

  • The same exact shenanigans are back in play that were in the 2003-2007 time frame

  • Low-doc loans, stated income loans, etc

  • HELOCs and home equity loans back in play based on fictitiously elevated appraisals

  • Massive abuse of FHA, VA, USDA loans for 3% or less (mostly 0%) down payments -- these idiots are insolvent the minute they sign the closing docs


We live in a new neighborhood that began life in 2012.  From the beginning we have watched the public records for closing docs for this neighborhood as a way to gauge market health -- and it's abysmal.

Of the ~100 houses that have been built in this neighborhood since 2012 the vast majority of them are "financed" with less than 10% down.  In the past 24 months there has been an explosion of 3% or less down payments with the bulk of those actually being 0% down.  And there has also been a noticeable increase of greater than 100% financing.

While a sample size of 100 isn't all that big, I guarantee this is playing out in neighborhoods all over the country.

Here's some perspective:

My scumbag neighbor who "bought" his $300k house with a measly $5k down (how insane is that?!) at the same time we bought ours back in 2012, just refinanced last summer for $330k so he could build a pool.  I guess he somehow blew some of the cash on something other than the pool, because the pool took 8 months(!!!) to complete (they're building entire houses in here in 6 months or less!) -- and by the end it was clear that the contractors were only working on a "we'll work when you pay us" basis.

Then he had to refinance again for a measly extra $2k so he could put his yard back together.  He literally did not have the cash to re-sod his yard after the pool was finally done, yet was able to refi for a 2nd time in less than 12 months.  Oh, and this is all being done via the VA (he's "disabled", yet mows, runs, bikes, and makes sure to claim the extra $5k in homestead tax exemption).

This has Disaster 2.0 written all over it.
Link Posted: 10/3/2015 10:57:06 AM EDT
[#30]
Nah, give it a couple of weeks.  Y'know, Oct. surprise and all that stuff.  
Link Posted: 10/3/2015 11:06:12 AM EDT
[#31]
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Quoted:



How much has ZIRP stimulated the economy?

How much more have people spent that they wouldn't have if interest rates were higher?

As a saver and someone that saves up to buy what they can afford,I'm all for higher interest rates.I just wonder if it will tighten peoples spending if it starts going up (I know it wouldn't go up by much).


Either way,we have a front row seat to this mess.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  






How much has ZIRP stimulated the economy?

How much more have people spent that they wouldn't have if interest rates were higher?

As a saver and someone that saves up to buy what they can afford,I'm all for higher interest rates.I just wonder if it will tighten peoples spending if it starts going up (I know it wouldn't go up by much).


Either way,we have a front row seat to this mess.



We've had three major economic bubbles over the last 20 years.  The first really wasn't inflated by legislative or monetary policy.  It was completely fueled by the irrational euphoria and optimism springing from the technology revolution of the 90's.   The second bubble that formed was intentional, and was a combination of policy decisions, both legislative and monetary, which were made to deal with some of the problems associated with the bursting of the tech bubble.  The real estate bubble was formed, and we cruised along until 2007-08', when it burst.  

The 08' crisis was huge. I don't believe people outside of my industry can really appreciate what happened in 08'.  It truly was a global financial collapse.   It was huge.  

It' could have been a financial system killer.   ...that's when central banks really took over and began "experimenting" with monetary policy.  The actions taken since 08' were unprecedented, we'd never done anything like this before.   The Fed intentionally decided to inflate a bubble, because it was believed there were no alternatives.  The 08' crisis was just that bad.  We could have easily gone into a deflationary spiral the likes of which we've never seen before.  A global depression that would have made the Great Depression look like a financial hiccup.  Everything might have unraveled, financial systems and governments.  It really was that scary.

So what we did was apply morphine, and hope the economy healed itself, and I have to honest.  To some degree it kinda-sorta worked.  We're still here, the global financial system is still kicking.  But now we're addicted to monetary stimulus, and we've taking them so long they're losing their effect.   We have to go through the withdrawal now.  

We can't put it off any longer.  I believe the Fed should raise rates, and we need to feel the pain of it.  

Link Posted: 10/3/2015 3:20:39 PM EDT
[#32]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  



View Quote




Absolutely and it's been this way for DECADES!

The PTB will do most ANYTHING to maintain Public Confidence --how many times have I written this???

They have to --to stay in Power and CONTROL!


Also...

PUBLIC Psychology is the KEY to Market Investing...


The so-called 'PPT', etc., intervenes to keep the party going...

And occasionally, ---when their Buds want to take lots of profits... And the political environment is somewhat optimum

Or they can't prop it up any longer vs. the costs...


Allow the Mkt to fall and  Shear the Shit Outta the Sheep.







Link Posted: 10/3/2015 5:22:49 PM EDT
[#33]
dt

Link Posted: 10/4/2015 10:26:14 AM EDT
[#34]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  



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Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  




I agree.  The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008.  Yet ZIRP is the emergency rate.

Quoted:
NIRP will be an absolute disaster for housing in terms of massively inflating the already massive housing bubble that has been re-inflated, which means an even bigger eventual bust.

We just stopped our efforts of the past 1+ year to build a new house.  Prices have started to go crazy again in the past 12-16 months and with this recent turn of events in the equity markets, we've decided to just stop all together, as our current house pays us (i.e. is paid for).

Other things we've noticed regarding housing:

  • The same exact shenanigans are back in play that were in the 2003-2007 time frame

  • Low-doc loans, stated income loans, etc

  • HELOCs and home equity loans back in play based on fictitiously elevated appraisals

  • Massive abuse of FHA, VA, USDA loans for 3% or less (mostly 0%) down payments -- these idiots are insolvent the minute they sign the closing docs


We live in a new neighborhood that began life in 2012.  From the beginning we have watched the public records for closing docs for this neighborhood as a way to gauge market health -- and it's abysmal.

Of the ~100 houses that have been built in this neighborhood since 2012 the vast majority of them are "financed" with less than 10% down.  In the past 24 months there has been an explosion of 3% or less down payments with the bulk of those actually being 0% down.  And there has also been a noticeable increase of greater than 100% financing.

While a sample size of 100 isn't all that big, I guarantee this is playing out in neighborhoods all over the country.

Here's some perspective:

My scumbag neighbor who "bought" his $300k house with a measly $5k down (how insane is that?!) at the same time we bought ours back in 2012, just refinanced last summer for $330k so he could build a pool.  I guess he somehow blew some of the cash on something other than the pool, because the pool took 8 months(!!!) to complete (they're building entire houses in here in 6 months or less!) -- and by the end it was clear that the contractors were only working on a "we'll work when you pay us" basis.

Then he had to refinance again for a measly extra $2k so he could put his yard back together.  He literally did not have the cash to re-sod his yard after the pool was finally done, yet was able to refi for a 2nd time in less than 12 months.  Oh, and this is all being done via the VA (he's "disabled", yet mows, runs, bikes, and makes sure to claim the extra $5k in homestead tax exemption).

This has Disaster 2.0 written all over it.

We moved last year for my job, which has more options if one company goes under.  We are renting currently and I have been watching the housing market.  I hear stories of multiple offers above asking in a day or two of listing and a lack of inspections or appraisals during the sale process.  Our plan now is to hold steady, accumulate more capital, and wait for the deflationary wave that is bound to come.  The cracks are starting to show more frequently.

I don't recall where I read it, but there was a very nice article talking about deflationary prices even in a hyper inflationary environment.
Link Posted: 10/4/2015 1:53:22 PM EDT
[#35]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
NIRP will be an absolute disaster for housing in terms of massively inflating the already massive housing bubble that has been re-inflated, which means an even bigger eventual bust.

We just stopped our efforts of the past 1+ year to build a new house.  Prices have started to go crazy again in the past 12-16 months and with this recent turn of events in the equity markets, we've decided to just stop all together, as our current house pays us (i.e. is paid for).

Other things we've noticed regarding housing:

  • The same exact shenanigans are back in play that were in the 2003-2007 time frame

  • Low-doc loans, stated income loans, etc

  • HELOCs and home equity loans back in play based on fictitiously elevated appraisals

  • Massive abuse of FHA, VA, USDA loans for 3% or less (mostly 0%) down payments -- these idiots are insolvent the minute they sign the closing docs


We live in a new neighborhood that began life in 2012.  From the beginning we have watched the public records for closing docs for this neighborhood as a way to gauge market health -- and it's abysmal.

Of the ~100 houses that have been built in this neighborhood since 2012 the vast majority of them are "financed" with less than 10% down.  In the past 24 months there has been an explosion of 3% or less down payments with the bulk of those actually being 0% down.  And there has also been a noticeable increase of greater than 100% financing.

While a sample size of 100 isn't all that big, I guarantee this is playing out in neighborhoods all over the country.

Here's some perspective:

My scumbag neighbor who "bought" his $300k house with a measly $5k down (how insane is that?!) at the same time we bought ours back in 2012, just refinanced last summer for $330k so he could build a pool.  I guess he somehow blew some of the cash on something other than the pool, because the pool took 8 months(!!!) to complete (they're building entire houses in here in 6 months or less!) -- and by the end it was clear that the contractors were only working on a "we'll work when you pay us" basis.

Then he had to refinance again for a measly extra $2k so he could put his yard back together.  He literally did not have the cash to re-sod his yard after the pool was finally done, yet was able to refi for a 2nd time in less than 12 months.  Oh, and this is all being done via the VA (he's "disabled", yet mows, runs, bikes, and makes sure to claim the extra $5k in homestead tax exemption).

This has Disaster 2.0 written all over it.
View Quote




Good informative post...






Link Posted: 10/4/2015 1:53:49 PM EDT
[#36]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
dt

View Quote



What's dt Q?


Link Posted: 10/4/2015 1:57:50 PM EDT
[#37]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

I agree.  The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008.  Yet ZIRP is the emergency rate.


We moved last year for my job, which has more options if one company goes under.  We are renting currently and I have been watching the housing market.  I hear stories of multiple offers above asking in a day or two of listing and a lack of inspections or appraisals during the sale process.  Our plan now is to hold steady, accumulate more capital, and wait for the deflationary wave that is bound to come.  The cracks are starting to show more frequently.

I don't recall where I read it, but there was a very nice article talking about deflationary prices even in a hyper inflationary environment.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  




I agree.  The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008.  Yet ZIRP is the emergency rate.

Quoted:
NIRP will be an absolute disaster for housing in terms of massively inflating the already massive housing bubble that has been re-inflated, which means an even bigger eventual bust.

We just stopped our efforts of the past 1+ year to build a new house.  Prices have started to go crazy again in the past 12-16 months and with this recent turn of events in the equity markets, we've decided to just stop all together, as our current house pays us (i.e. is paid for).

Other things we've noticed regarding housing:

  • The same exact shenanigans are back in play that were in the 2003-2007 time frame

  • Low-doc loans, stated income loans, etc

  • HELOCs and home equity loans back in play based on fictitiously elevated appraisals

  • Massive abuse of FHA, VA, USDA loans for 3% or less (mostly 0%) down payments -- these idiots are insolvent the minute they sign the closing docs


We live in a new neighborhood that began life in 2012.  From the beginning we have watched the public records for closing docs for this neighborhood as a way to gauge market health -- and it's abysmal.

Of the ~100 houses that have been built in this neighborhood since 2012 the vast majority of them are "financed" with less than 10% down.  In the past 24 months there has been an explosion of 3% or less down payments with the bulk of those actually being 0% down.  And there has also been a noticeable increase of greater than 100% financing.

While a sample size of 100 isn't all that big, I guarantee this is playing out in neighborhoods all over the country.

Here's some perspective:

My scumbag neighbor who "bought" his $300k house with a measly $5k down (how insane is that?!) at the same time we bought ours back in 2012, just refinanced last summer for $330k so he could build a pool.  I guess he somehow blew some of the cash on something other than the pool, because the pool took 8 months(!!!) to complete (they're building entire houses in here in 6 months or less!) -- and by the end it was clear that the contractors were only working on a "we'll work when you pay us" basis.

Then he had to refinance again for a measly extra $2k so he could put his yard back together.  He literally did not have the cash to re-sod his yard after the pool was finally done, yet was able to refi for a 2nd time in less than 12 months.  Oh, and this is all being done via the VA (he's "disabled", yet mows, runs, bikes, and makes sure to claim the extra $5k in homestead tax exemption).

This has Disaster 2.0 written all over it.

We moved last year for my job, which has more options if one company goes under.  We are renting currently and I have been watching the housing market.  I hear stories of multiple offers above asking in a day or two of listing and a lack of inspections or appraisals during the sale process.  Our plan now is to hold steady, accumulate more capital, and wait for the deflationary wave that is bound to come.  The cracks are starting to show more frequently.

I don't recall where I read it, but there was a very nice article talking about deflationary prices even in a hyper inflationary environment.




Which ever way it goes...

You're a wise man...



It seems getting on disability is a Major career path for many...



"I agree. The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008. Yet ZIRP is the emergency rate."


I have NO IDEA why ANYONE pays any attention to what they say.

They prove to be a pack of liars who have helped destroy our country... ----taking their marching orders from the financial/political classes.


They sure have made a lot of Elite rich though...





Link Posted: 10/4/2015 1:58:05 PM EDT
[#38]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



What's dt Q?


View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
dt




What's dt Q?





I made an editing mistake, deleted the post, and didn't feel like retyping it.  That's all.
Link Posted: 10/4/2015 2:04:49 PM EDT
[#39]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



I made an editing mistake, deleted the post, and didn't feel like retyping it.  That's all.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
dt




What's dt Q?





I made an editing mistake, deleted the post, and didn't feel like retyping it.  That's all.



I hate when that happens...  


Especially a long technical post that accidentally gets deleted during the process of composing...


Like this one...

Here





Link Posted: 10/4/2015 4:58:43 PM EDT
[#40]
Discussion ForumsJump to Quoted PostQuote History
Quoted:




Which ever way it goes...

You're a wise man...



It seems getting on disability is a Major career path for many...



"I agree. The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008. Yet ZIRP is the emergency rate."


I have NO IDEA why ANYONE pays any attention to what they say.

They prove to be a pack of liars who have helped destroy our country... ----taking their marching orders from the financial/political classes.


They sure have made a lot of Elite rich though...
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
The market is addicted to the morphine of monetary policy.  I'm going to go out on a limb and stand by what I said before the last Fed meeting.  The Fed needs to go ahead and raise rates.  

As crazy as it sounds, I believe the Fed, and perhaps all central banks and planners, are afraid of losing the "faith" of the market.  They're afraid people will lose their "belief", and realize central banks really aren't in control.  At least not to the degree most believe.  

ZIRP is a bad policy that has caused all kinds of economic distortions and malinvestment.  It also leads to a kind of market "addiction", all of which must end.  We must endure the painful withdrawal of this toxic policy.  The longer we put it off the harder it will be.  

Just my 2 cents.  




I agree.  The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008.  Yet ZIRP is the emergency rate.

Quoted:
NIRP will be an absolute disaster for housing in terms of massively inflating the already massive housing bubble that has been re-inflated, which means an even bigger eventual bust.

We just stopped our efforts of the past 1+ year to build a new house.  Prices have started to go crazy again in the past 12-16 months and with this recent turn of events in the equity markets, we've decided to just stop all together, as our current house pays us (i.e. is paid for).

Other things we've noticed regarding housing:

  • The same exact shenanigans are back in play that were in the 2003-2007 time frame

  • Low-doc loans, stated income loans, etc

  • HELOCs and home equity loans back in play based on fictitiously elevated appraisals

  • Massive abuse of FHA, VA, USDA loans for 3% or less (mostly 0%) down payments -- these idiots are insolvent the minute they sign the closing docs


We live in a new neighborhood that began life in 2012.  From the beginning we have watched the public records for closing docs for this neighborhood as a way to gauge market health -- and it's abysmal.

Of the ~100 houses that have been built in this neighborhood since 2012 the vast majority of them are "financed" with less than 10% down.  In the past 24 months there has been an explosion of 3% or less down payments with the bulk of those actually being 0% down.  And there has also been a noticeable increase of greater than 100% financing.

While a sample size of 100 isn't all that big, I guarantee this is playing out in neighborhoods all over the country.

Here's some perspective:

My scumbag neighbor who "bought" his $300k house with a measly $5k down (how insane is that?!) at the same time we bought ours back in 2012, just refinanced last summer for $330k so he could build a pool.  I guess he somehow blew some of the cash on something other than the pool, because the pool took 8 months(!!!) to complete (they're building entire houses in here in 6 months or less!) -- and by the end it was clear that the contractors were only working on a "we'll work when you pay us" basis.

Then he had to refinance again for a measly extra $2k so he could put his yard back together.  He literally did not have the cash to re-sod his yard after the pool was finally done, yet was able to refi for a 2nd time in less than 12 months.  Oh, and this is all being done via the VA (he's "disabled", yet mows, runs, bikes, and makes sure to claim the extra $5k in homestead tax exemption).

This has Disaster 2.0 written all over it.

We moved last year for my job, which has more options if one company goes under.  We are renting currently and I have been watching the housing market.  I hear stories of multiple offers above asking in a day or two of listing and a lack of inspections or appraisals during the sale process.  Our plan now is to hold steady, accumulate more capital, and wait for the deflationary wave that is bound to come.  The cracks are starting to show more frequently.

I don't recall where I read it, but there was a very nice article talking about deflationary prices even in a hyper inflationary environment.




Which ever way it goes...

You're a wise man...



It seems getting on disability is a Major career path for many...



"I agree. The fed has said the economy has recovered and there is no need to keep in the emergency actions from 2008. Yet ZIRP is the emergency rate."


I have NO IDEA why ANYONE pays any attention to what they say.

They prove to be a pack of liars who have helped destroy our country... ----taking their marching orders from the financial/political classes.


They sure have made a lot of Elite rich though...

Wise comes with age and I still have tons to learn.  I am a millennial after all.  I am motivated to do the best I can to provide my son a stable childhood.

I do pay attention to what the liars say so I can act accordingly, usually as a contrarian viewpoint.  The wheels are coming off the track, and sooner than most realize.
Link Posted: 10/5/2015 10:11:54 AM EDT
[#41]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I love how you (and some others) now want to pretend that this thread was somehow about something completely different than it actually was.

. It was not.  It was a thread about a specific prediction you made - namely that markets were going to collapse (on thupcoming Monday) specifically as a result of a default in Greece and subsequent problems in the EU.  That has not happened, and you were completely wrong.  Sorry you have trouble admitting that, but it is painfully obvious to anyone who can read.

You trying to pretend that the thread was some kind of general discussion about market trends is pretty disingenuous, but not surprising, I guess.  It is consistent with the "Six Months" (TM) mindset of Doomers, in which the goalposts are constantly moved, topics changed, and ridiculously accusations made.  All of those have been evident in this thread.

As an example, you and others set up a strawman and pretend that anyone that disagrees with you must be a "pumper" and must be long in the markets.  That's as silly as claiming that anyone who doesn't like Trump is a Jeb supporter - which everyone knows isn't true, yet Trump supporters often vigorously make the argument all the time, arguing against a fake strawman instead of what people are actually saying.  For example, the fact that I am laughing at your inept and incorrect predictions doesn't tell you ANYTHING about my investment strategies, and the fact that you'd label me a "pumper" or some silly thing only demonstrates how weak you are at arguing.

Same for the constant changing of topics and trying to re-focus the discussion on new things, when it becomes obvious that you are wrong about your initial point. For some reason, Doomers seem unable to ever admit a mistake, and constantly just move the goalposts, and try to convince people they were "really" talking about something else.  Some of the usual suspects have seriously been claiming that the economy is just about to collapse since around 2009 - and it's always just around the corner - and they don't even seem to comprehend how ludicrous they've come to appear, standing on their street corner year after year, yelling to everyone how the end is nigh, and just about to happen.  If we enter a bear market for the next few years, it will NOT have validated them, or "proved them right" because they've been claiming that the markets are going to TOTALLY  COLLAPSE - for whatever ever-changing reasons they pull out of their ass.  In the on-going threads, that have been going since around 2009 - that pretty much nobody other than Doomers post in now, because everyone else got tired of the same ol bullshit over and over - nobody said "I predict we'll get a bear market for a few years" . It was always things like "The economy is going to totally collapse in the next few months because we have too much unsustainable debt" or "The economy is going to totally collapse in the next few months because the commercial real estate markets are too heavily leveraged" or "The economy is going to totally collapse in the next few months because global trade is screeching to a halt" or "The economy is going to totally collapse in the next few months because the Fed is talking about stopping QE" or "The economy is going to totally collapse in the next few months because mortgage standards are being lowered by Fannie/Freddie" and so on and so on and so on - patting themselves on the back for how clever and insightful they are, and sneering the stupid steeple that just don't understand the economy like they do.  For years and years and years.  Always a new reason for why the collapse is going to happen, yet no collapse.  

And nobody willing to ever admit they were wrong.  The funniest example is that of QE (as I may have mentioned earlier).  Lots of Doomers  confidently predicted that everything would collapse if the Fed ever even announced that they were going to start tapering the asset purchase program.  Then the Fed did exactly that, and suddenly the goalposts were moved, and the confident prediction was that if the asset purchase plan was actually ended, economy would totally collapse - without any acknowledgement that they previous prediction had been 100% wrong.  Then the Fed did exactly that, and then suddenly all of the Doomers stopped talking about QE. Any mentioned of it completely disappeared from their dire predictions of economic collapse, and if asked about it, they'd either claim a secret conspiracy, claiming that asset purchases were still somehow secretly ongoing withany anyone knowing (presumably orchestrated by the Illuminati and lizard people), or they'd move the goalposts again, and claim that what they "really meant" by QE (which was the asset purchase program that injected money into the system) was actually something completely different, namely the Fed balance sheet - which nobody had mentioned before QE ended.

So the fact that you are now trying to claim that you said something different from what you actually said, and are trying to claim that you were "really" talking about something different, and that you (and other Doomers) are now not really interested in talking about how a default in Greece is going to cause a collapse (which was your original prediction) is hilarious, and 100% predictable.  

What will be even funnier is that IF the migrant crisis causes a serious problem in the EU - undermining the EU treaties and governance structure, which it easily could - and somehow managed to pitch the EU into a deep(er) and serous recession, which will obviously hurt global markets, your will undoubtedly claim that you predicted it, because the word "EU" was in your original post.  That would be par for the course, and even more hilarious.

So please continue with your transparent rationalization and constant moving of goalposts.  It is VERY entertaining.  . That's ultimately what I am in this thread for - entertainment.  You have made it clear that you are not actually interested in really developing a more sophisticated understanding of the issue, and nor are you interested in an actual rational discussion - so laughing at you is pretty much the only reason I am in this thread.  
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Where did all of the pumpers go?


I love how you (and some others) now want to pretend that this thread was somehow about something completely different than it actually was.

. It was not.  It was a thread about a specific prediction you made - namely that markets were going to collapse (on thupcoming Monday) specifically as a result of a default in Greece and subsequent problems in the EU.  That has not happened, and you were completely wrong.  Sorry you have trouble admitting that, but it is painfully obvious to anyone who can read.

You trying to pretend that the thread was some kind of general discussion about market trends is pretty disingenuous, but not surprising, I guess.  It is consistent with the "Six Months" (TM) mindset of Doomers, in which the goalposts are constantly moved, topics changed, and ridiculously accusations made.  All of those have been evident in this thread.

As an example, you and others set up a strawman and pretend that anyone that disagrees with you must be a "pumper" and must be long in the markets.  That's as silly as claiming that anyone who doesn't like Trump is a Jeb supporter - which everyone knows isn't true, yet Trump supporters often vigorously make the argument all the time, arguing against a fake strawman instead of what people are actually saying.  For example, the fact that I am laughing at your inept and incorrect predictions doesn't tell you ANYTHING about my investment strategies, and the fact that you'd label me a "pumper" or some silly thing only demonstrates how weak you are at arguing.

Same for the constant changing of topics and trying to re-focus the discussion on new things, when it becomes obvious that you are wrong about your initial point. For some reason, Doomers seem unable to ever admit a mistake, and constantly just move the goalposts, and try to convince people they were "really" talking about something else.  Some of the usual suspects have seriously been claiming that the economy is just about to collapse since around 2009 - and it's always just around the corner - and they don't even seem to comprehend how ludicrous they've come to appear, standing on their street corner year after year, yelling to everyone how the end is nigh, and just about to happen.  If we enter a bear market for the next few years, it will NOT have validated them, or "proved them right" because they've been claiming that the markets are going to TOTALLY  COLLAPSE - for whatever ever-changing reasons they pull out of their ass.  In the on-going threads, that have been going since around 2009 - that pretty much nobody other than Doomers post in now, because everyone else got tired of the same ol bullshit over and over - nobody said "I predict we'll get a bear market for a few years" . It was always things like "The economy is going to totally collapse in the next few months because we have too much unsustainable debt" or "The economy is going to totally collapse in the next few months because the commercial real estate markets are too heavily leveraged" or "The economy is going to totally collapse in the next few months because global trade is screeching to a halt" or "The economy is going to totally collapse in the next few months because the Fed is talking about stopping QE" or "The economy is going to totally collapse in the next few months because mortgage standards are being lowered by Fannie/Freddie" and so on and so on and so on - patting themselves on the back for how clever and insightful they are, and sneering the stupid steeple that just don't understand the economy like they do.  For years and years and years.  Always a new reason for why the collapse is going to happen, yet no collapse.  

And nobody willing to ever admit they were wrong.  The funniest example is that of QE (as I may have mentioned earlier).  Lots of Doomers  confidently predicted that everything would collapse if the Fed ever even announced that they were going to start tapering the asset purchase program.  Then the Fed did exactly that, and suddenly the goalposts were moved, and the confident prediction was that if the asset purchase plan was actually ended, economy would totally collapse - without any acknowledgement that they previous prediction had been 100% wrong.  Then the Fed did exactly that, and then suddenly all of the Doomers stopped talking about QE. Any mentioned of it completely disappeared from their dire predictions of economic collapse, and if asked about it, they'd either claim a secret conspiracy, claiming that asset purchases were still somehow secretly ongoing withany anyone knowing (presumably orchestrated by the Illuminati and lizard people), or they'd move the goalposts again, and claim that what they "really meant" by QE (which was the asset purchase program that injected money into the system) was actually something completely different, namely the Fed balance sheet - which nobody had mentioned before QE ended.

So the fact that you are now trying to claim that you said something different from what you actually said, and are trying to claim that you were "really" talking about something different, and that you (and other Doomers) are now not really interested in talking about how a default in Greece is going to cause a collapse (which was your original prediction) is hilarious, and 100% predictable.  

What will be even funnier is that IF the migrant crisis causes a serious problem in the EU - undermining the EU treaties and governance structure, which it easily could - and somehow managed to pitch the EU into a deep(er) and serous recession, which will obviously hurt global markets, your will undoubtedly claim that you predicted it, because the word "EU" was in your original post.  That would be par for the course, and even more hilarious.

So please continue with your transparent rationalization and constant moving of goalposts.  It is VERY entertaining.  . That's ultimately what I am in this thread for - entertainment.  You have made it clear that you are not actually interested in really developing a more sophisticated understanding of the issue, and nor are you interested in an actual rational discussion - so laughing at you is pretty much the only reason I am in this thread.  


I don't know why I bother to respond to threads, when you usually come along and say whatever I'm thinking about 1,000 times better than my lousy attempt.  I should just wait for you to get around to a thread and then just add a +1.  

Well said.  


Link Posted: 10/5/2015 12:27:57 PM EDT
[#42]
This is interesting.



We are approaching a resistance level.  If we breach it  It will revert the bearish resistance line into a bullish support line right around the 1990-1900 level.  Right where we saw buyers coming in on Friday.  Personally I think it's a trap, and would remain very cautious trying to play it to the upside.  But it's worth noting.  

The euphoria of continued ZIRP may not last but a day or two longer.  I'll be interesting to see how the price action reacts if we go above 1980-90 level.

(edit after market close)

Well we banged right up against the bearish resistance line and stopped, just as would be expected.  I think you have to sell this rally.
Link Posted: 10/5/2015 7:18:17 PM EDT
[#43]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Personally I think it's a trap, and would remain very cautious trying to play it to the upside.  But it's worth noting.  

The euphoria of continued ZIRP may not last but a day or two longer.  

I think you have to sell this rally.
View Quote


Agreed - I see no reason for improvements if the underlying assumptions of slow growth in Europe and China are still on the table, although commodities took off today, suggesting some China improvement.
Link Posted: 10/5/2015 9:30:07 PM EDT
[#44]
My personal opinion is that a large portion the rally is a short squeeze.
Link Posted: 10/5/2015 9:35:00 PM EDT
[#45]
Link Posted: 10/6/2015 6:53:36 PM EDT
[#46]
Look like the buyers dried up today. or the buy cover is over.
Link Posted: 10/6/2015 7:16:37 PM EDT
[#47]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
History repeats itself.

http://i.imgur.com/fWid1rp.png
View Quote




What program is that?  I reproduced it on Yahoo finance, but I like your output better.
Link Posted: 10/6/2015 7:27:42 PM EDT
[#48]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
History repeats itself.

http://i.imgur.com/fWid1rp.png
View Quote




Man, if I were a Buy and Holder and studied that chart...

My ass would be sooo puckering right now...





Link Posted: 10/6/2015 7:39:21 PM EDT
[#49]
Discussion ForumsJump to Quoted PostQuote History
Quoted:




Man, if I were a Buy and Holder and studied that chart...

My ass would be sooo puckering right now...





View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
History repeats itself.

http://i.imgur.com/fWid1rp.png




Man, if I were a Buy and Holder and studied that chart...

My ass would be sooo puckering right now...







How have your net returns compared to mean market returns over your investing career?

By the way, not a smartass question, I'm genuinely curious.
Link Posted: 10/6/2015 7:54:42 PM EDT
[#50]
Discussion ForumsJump to Quoted PostQuote History
Quoted:




Man, if I were a Buy and Holder and studied that chart...

My ass would be sooo puckering right now...





View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
History repeats itself.

http://i.imgur.com/fWid1rp.png




Man, if I were a Buy and Holder and studied that chart...

My ass would be sooo puckering right now...






No shit!
My broker took me to cash a couple of months ago and we have just day trading GLD, TLT. EDV . etc.
Doing pretty good and we always beat the markets.
Most of the paid advisers we follow advise 50 to 75% cash right now and be careful do to slowing growth.
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