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Stop buying new investments, start saving a lot. A bubble is about to pop.

FEDI had to say it although I do not know what is going to happen, but today’s move on the market was very surprising to me.

It wasn’t the “surprising” halt on tapering efforts from the FED, but the Wall Street reaction what shocked me. Are we really dealing with a bunch of idiots on the market these days? As long as I watch what’s going on as surprised and disgusted I am.

It looks like the investors are too fixed on FED’s moves that they are already blindfolded to see the reality.

So what has happened? Ben told us this early afternoon that the US economy stinks, it is bad, it doesn’t perform as expected. Therefore FED decided to keep its QE3 stimulus intact and continue buying bonds spending $85 billion of printed money.

And the market participants started buying everything what was available and pushed S&P 500 and other markets to new record highs.

Later a press conference was held and it moved the markets even higher.

Although I believe this frenzy run-up will correct tomorrow, the market may continue on its pumped march upwards. I am however skeptical and think these levels are artificial and unsustainable that I am going to take some steps to slow my buying and continue more in saving cash.

If this bubble busts, I will have a lot of cash available to buy all the stocks the same investors will start dumping when the music stops.

 
 





2 responses to “Stop buying new investments, start saving a lot. A bubble is about to pop.”

  1. […] Stop Buying New Investments, Start Saving Alot, The Bubble is About to Pop – Hello Suckers discusses the fact that he believes current market levels are unsustainable and he is taking actions to prepare for a correction.  This would include saving up cash to be available when bargains begin appearing.  Personally, I have no idea when the market will correct.  It could be next week, next month, next year or 10 years from now.  I don’t time the market.  Rather I prefer to buy high quality companies when I believe they are being offered at a reasonable valuation. […]

  2. Ben says:

    It’s crazy, isn’t it? I thought the market didn’t have much room to run at the beginning of the year and look where we are. The weird thing is that since the economy is still in stall speed the sentiment hasn’t gotten to bubble levels yet. I agree with you that having some cash on hand for future purchases makes sense.

    • Martin says:

      Yes, I think the market is out of touch of reality. I did some purchases now, but right now i am heading to be saving only, because when this craziness stops, I am expecting all those who were now buying running away screaming and selling everything. When that starts I want to have cash on hand.

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