Where is the rabbit?
We need a rabbit!
It was a very frightening week of the market, two 100 points of the day and Friday's low.
In the past few days, Sir Alan tells us that things are rising and the economy is basically strong. Mr. Market did not hear him. It seems that the jaw bone can not let people buy. In fact, sellers are more than buyers.
If you go back to history, it is a truth that has become the traditional wisdom that the stock market rises during the election year. Reasoning is obvious. The president – who he is – in the office will pull out all the stops to create an illusion that the economy is in a good state and he is one who's credit. Both Mr Bush and the Fed are better off getting their best hat and reaching for the white rabbit.
It will take some real magic to make people in the buying mood. The lower the price, the less likely they are to buy. Of course, the broker called the investor and told the investor: "This is buyout, the stock is cheap, and now better, you can not let this opportunity go, you can not exit the market. Intertwined with. Do not believe any pork
What broker should tell investors is to save their money by placing a stop order. You can be sure that will not happen. Big brokers frowning stop and punish those who encourage their customers to use their lucky. Is that when I was a broker, I worked for the company and did not punish the concept that I refused to accept a client when they would not stop shopping. That's why I never lost customers and have them for years.
This year the major indices (DOW, S & P and Nasdaq) fell. Not a lot but certainly lower. That means those who invest in mutual funds who are losing money. Brokers always say "you It is in the long distance ", so do not worry about what happened now. It was they in 2000 to tell you that you still did not recover your losses.
No brokerage company tells the story of the secular bull market and bear market. In the past 200 years there is a regularity, if the history continues to repeat, will follow the same path. The shortest haunted bears have been 8 years, the longest 25 years. At least we do not have this through one.
Investors (I hope you) will protect their portfolios and have a stop-loss protection in every position. Each broker and financial planner will recommend against it, but its money is not theirs.
The market is not magic. Hocus orangutans and white rabbits will not make it rise for a long time. The illusion is not there. Forget the brokers abracadabras and put stop damage today .