Tuesday, July 15, 2014
"It's easy to see what's happening with debt and the real economy (as measured by GDP, gross domestic product): debt is skyrocketing while real growth is stagnant. Put another way--we have to create a ton of debt to get a pound of growth."
Monday, July 14, 2014
St insiders know that once John and Mary Mainstreet pile into the
market, the time is now to get OUT. They're jumping ship like rats,
while the small investors on Main St piling into the market. One reason
for this is that there's not big piles of cash left to keep pushing the
market still higher. Once John and Mary pile in, who's left with
mountains of cash to keep buying and pushing the market higher?
Look at the chart in this article that shows that just as the Wall St bankers are jumping OUT, small "retail" investors from Main St are finally (foolishly) piling in. This phenomenon has existed for generations in history. Many on Wall St know that this is a sign of an impending top. That's why this article was written to talk about it.
Professional investors, such as Nick Skiming of Ashburton Ltd., say that individuals investors are attracted to stocks after seeing others getting rich from a big rally, a time when equities are usually overpriced. The bursting of the technology bubble in March 2000 was marked by mutual funds absorbing a record $102 billion in the first quarter."