Uncategorized 
No Comments The Last Bull Market
Melt-down. We know what that means. But something else is happening now. It’s called melt-up. We’ve had an extended bull market since 2009 and it continues. Many say it’s the Trump bump. Some of that is certainly true although there may be a lull from the devastation of Hurricane Harvey and the possibility of Hurricane Irma causing even more destruction. The government will spend millions and all that money spent will act as a stimulus to the economy. But that’s stuff of pocket change. The real shot in the arm comes from investing mania which will effect everyone in the end. In normal times the “printing” of twelve trillion dollars would devalue our currency but the dollar is stronger than ever. Interest rates have been and still remain fairly close to zero which means little risk in investments. Stocks are the world’s strongest currency and becoming more valuable every week. There will be downturns now and then but the trend will not stop. Few people are invested in the stock market. Cash has been held because the average guy is still uncertain of the future. But the lure of income will eventually draw everyone into stocks. The Bank of Japan will be the number one buyer of Japanese stocks. Worldwide, banks are getting into stocks. Janet Yellen has said that it could be beneficial for the Fed to buy stocks! Just imagine the biggest printing press in the world getting into stocks; the sky will be the limit. The staggering rise in the DOW to 50,000 or more will drag everyone into the market as it becomes the “only game in town”. How high will it go? Somewhere between forty and seventy thousand is very possible. The secret to actually making money will be knowing when to get out. Remember, when everyone gets greedy, get scared. Knowing where to put gains made will be imperative to retaining wealth. Before the collapse the wise will have taken their gains and invested in things the government doesn’t want, is hard for them to use or find out you have i.e. precious metals, durable goods, boats, cars, real estate, or collectibles. This is no time to dally; you must get in early and out early. The next bull market will likely be thirty or more years after the collapse. This may sound ridiculous I guess but the more you think about it the more sense it makes.