DOW dropping 600 points
[youtube]https://www.youtube.com/watch?v=1lWJXDG2i0A[/youtube]
With all the wonderful news coming out of the United States economy this year I surely can’t wait til October when the real fun begins. 
Buckle up lads as it is about to become very bumpy around here. 
Who shall pin the balloon first? Pop goes the weasel… 
[youtube]https://www.youtube.com/watch?v=nFQhlpB6N2A[/youtube]
I think it will occur between 2019-25. Of course I am hoping it happens more sooner. Between one to six years at the most. So unless you plan on dying in one to six years time it will happen in your lifetime. Yes, most are easily fooled by political rhetoric and propaganda but all of that is only as good (effective) as the supply chains of society keeps running. As soon as the supply chains wind down or collapse so too will the political rhetoric and propaganda collapse also. When that happens the world will become very interesting indeed. 
Yes, everything seems nice and new when you’re running everything up on debt through credit. Just take a look at national credit/ debt rates. People are going to need some real wits to survive what’s coming and if they don’t have any they better find some very quickly as time is fast running out.
What supply chains are you referring to?
The SP500 can’t go down unless the 500 best companies in the world go down the toilet and that’s just not conceivable. I mean, it can go down momentarily, but it will go right back up.
And I can’t imagine how the USD could go down before all the other currencies bite the dust, which will make the USD go to the moon.
As I said previously, once they start printing, they will have to print exponentially more just to hold the value down and the acceleration of printing may have to accelerate as well (4th order).
Watch the yen get stronger because they’ve slacked on printing more. To hold the yen down they will have to accelerate their printing. There is not enough ink in the universe to devalue the yen. Watch the Euro get stronger as well.
[youtube]https://www.youtube.com/watch?v=U_X6qLBtRTA[/youtube]
Almost everything he said was wrong and it’s the same as what he is saying today.
“The bear market is going to get a lot worse”
“Inflation is going out of control”
“The market is overvalued”
“The US is in worse shape than before”
Deficits, debt, the sky is falling!
Doom porn can be fun, but don’t bet on it.
If he’d put 10 bucks into the market for every doomsday prediction he’s made over the last 10 years then he’s be halfway to retirement right now.
Yes, everybody can be rich if only they buyed stawks!
All kinds of supply chains. Concerning companies they hold no loyalties or affiliations to any one nation anymore where I suspect you may be right about those 500 companies however if the S&P were to collapse quickly enough it will have tremendous consequences on nation economies where that is what really matters not some financial portfolio of a company.
Chinese yuan just became gold backed today which means it is the beginning of the end for the United States dollar. They’ve been printing for almost fifty years and it is no longer a winning strategy. You can only devalue a currency so much to stop inflation where it won’t work always.
They might try to buy treasury bonds or all kinds of bonds directly next but even that will have negative global market consequences.
The Japanese yen, Canadian loonie, and euro are so dependent on the American dollar that their plight is of little importance. Once the dollar faces a crisis their currencies will start faltering also.
Damn, with the Chinese yuan being backed by gold increasing with value now might be a good time in buying up yuan currencies. 
I will have to think and ponder on this deciding later. Currency trading is the smart money me thinks.
Historically, it has been among the best paths to accumulating wealth. I’m not talking about speculating and day trading.
What are your thoughts on currency trading?
Same as everyone else’s. Don’t do it. Too risky. You don’t start trading currencies until you’ve invested in just about everything else and still have money left to play with.
That’s what I do. Open a practice account with FXCM (not available in the US anymore, but you can still use the GBP practice account) They have the best software (Trading Station). Mess around with it for a couple years before you think about throwing real money in. I’ve blown up more accounts than I can remember.
TradingView also has a practice account, but it’s not realistic since you can’t go broke. I made $13 million last year trading gold on TradingView. Just keep buying all the way down because you can’t run out of money
With stocks, you need $25k if you want to daytrade (buy and sell in one day, 4 times in one week, or something like that). If you buy and sell the same day, that counts against one of your 4 for the week. If you violate it, you’re labeled a “pattern daytrader” and must keep your account above $25k or never buy and sell in the same day again (or switch brokers). The SEC sucks, which is why I trade currencies now. You’re more hogtied in the land of the free than in any other country where trading exists.
Realistically, if you want to trade stocks, you need $100k to start. I mean, unless you’re really good or really lucky or really patient and do not trade much.
I don’t know much about options, but maybe there is a way to circumvent some of the crap with them. On the other hand, more leverage is greater risk so I don’t know. If you get lucky, you can get into a straddle where there is no risk and all reward, but that requires patience and luck. Warren Buffett said the market is a mechanism for the transfer of money from the impatient to the patient.
I’m thinking about buying and holding physical foreign currencies thereby exchanging them as their value goes up against the United States dollar. I predict this happening with the Chinese renminbi.
You can do that with forex.com. Not physical, but you can sell the USD/CNH. 1 microlot is 1000 of them. You’ll also be paid 9 cents interest per day, 7 days, 365 ($32.85 per year unless rates change). It will cost $100 to hold the position, meaning your account value cannot fall below that.
Interesting, I’ll have to look into that.
I’ve heard that with some international corporate large banks you can just walk right in and exchange money for foreign currency directly but I think you have to have an account with them to do so. You know, skip the middle man and such. I wonder how feasible or profitable doing that is in the long run. I see Chinese renminbi skyrocketing in value as it now gold backed and is basically preparing to cut against all international dollar markets. It will essentially become the new international currency of choice for trading unfortunately in that I am no fan of the communist Chinese nonetheless I am realist and that is where I see things going.
They’ll charge fees to make it economically prohibitive to exchange hard currencies at bank branches for profit.
Why not invest in an ETF that tracks Asian bonds? Or one that tracks gold? Or volatility in the US markets? Why not buy short options for QQQ?
Do what the people who are making money are doing instead of trying to come up with a hairbrained way to do it differently. There are plenty of people on Wall Street who believe the same things that you believe. They’re shorting the indexes, they’re buying funds that are diversified across foreign bond markets, and they’re trading the VIX.
It seems like a headache to me. It reminds me of owning gold… as soon as I buy any, I’m $50 in the hole and require a $50 appreciation just to get back to even because of the spread. The spread is less with paper gold. It could be the same with real money.
You can also trade currencies with ameritrade, but the spreads are higher since they go through forex.com or oanda. But ameritrade is a full-service bank/broker and you can trade anything (lots of ways to lose your money lol). They have bill pay, stocks, futures, forex, debit cards, whatever.
This is a good one to buy and hold.
reuters.com/finance/stocks/ … file/FAX.A
Not a lot of volatility in the share price, so easy in and out therefore good liquidity. Good diversification, and counting on economies getting better on the other side of the world, but in the event that they don’t, you’ll have taken out decent amount of your capital over time by cashing the dividend check. But, you’d probably be smarter to just take fractional shares instead of the dividend, because you know…those economies are probably going to get better.