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Stocks Head To The Moon


Realistbear
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I have two active shares - one in Lloyds which I hope will go back to the point I bought it at... and a short on the FTSE (contradictory, I know...). How on Earth the FTSE is UP I do not know.... in fact I think the rise from the bottom a few years ago back to the top is based on hot air - I look forward to big falls. At least that's what I'd expect to see!

3% down on my FTSE short right now but going to hold this one - glad I didn't buy into the leveraged short, though... maybe when TSHTF. I cannot see the FTSE rising much more, I honestly believe there must be big falls. If not, I'm the worst investor ever lol...

In the main because the euro found support near its lows as China denied they were going to dump their euro reserves, the dollar and US treasuries are selling off a tad (euro/USD was oversold), causing money to flow back into risk assets, causing short covering giving a nice turbo boost and BP claiming operation Top Kill seems to have stemmed the flow won't have done any harm.

Or, if you're hard of thinking, something to do with the moon (that happens every ten trading days and thus any movement is always of average only 4 trading days either side of 'moon' day). I prefer the 'any day with a 1,2 or 3 in it' technique myself. That one has never let me down.

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In the main because the euro found support near its lows as China denied they were going to dump their euro reserves, the dollar and US treasuries are selling off a tad (euro/USD was oversold), causing money to flow back into risk assets, causing short covering giving a nice turbo boost and BP claiming operation Top Kill seems to have stemmed the flow won't have done any harm.

Or, if you're hard of thinking, something to do with the moon (that happens every ten trading days and thus any movement is always of average only 4 trading days either side of 'moon' day). I prefer the 'any day with a 1,2 or 3 in it' technique myself. That one has never let me down.

Nah. Best technique is to openly boast when you "predict" the market correctly, and keep schtum when you don't.

Do this until you have encouraged other people to give you their money to "invest" with, leaving your own money safe from harm.

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Dow futures for tomorrow is up 302 (CNN). Looks like a big bounce, probably another big fall beginning next week. Increasing volatility is said to be a precursor of a bear run or crash. That's what happened in the last big collapse a couple of years ago - it's easy to see from the graphs.

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Dow futures for tomorrow is up 302 (CNN). Looks like a big bounce, probably another big fall beginning next week. Increasing volatility is said to be a precursor of a bear run or crash. That's what happened in the last big collapse a couple of years ago - it's easy to see from the graphs.

Dow futures for tomorrow is up 302 (CNN)?

DOW futures currently down 20 points.

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Buy buy buy before you miss out!

Bear in mind, it's not that shares are rising (some are, some aren't). It's that the £ has been muchly devalued and (now people have started to notice) shares - on average - are holding their value rather better.

I'm pretty unconvinced. Moved a bit more of my pension money OUT of shares when I saw today's market bounce.

Let's see how well shares "hold their value" when the governments of the world replace their profligacy with austerity (bear in mind that the UK 12% budget deficit is about 6% of GDP, i.e. removing it is a bigger fall in GDP than the 2008/9 recession).

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Let's see how well shares "hold their value" when the governments of the world replace their profligacy with austerity (bear in mind that the UK 12% budget deficit is about 6% of GDP, i.e. removing it is a bigger fall in GDP than the 2008/9 recession).

I'm afraid it's 12% of GDP.

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I'm pretty unconvinced. Moved a bit more of my pension money OUT of shares when I saw today's market bounce.

Let's see how well shares "hold their value" when the governments of the world replace their profligacy with austerity (bear in mind that the UK 12% budget deficit is about 6% of GDP, i.e. removing it is a bigger fall in GDP than the 2008/9 recession).

No one is removing the budget deficit, this year, next year, or at any time in the next few years (at least).

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No one is removing the budget deficit, this year, next year, or at any time in the next few years (at least).

It will have to be removed one day, AND the accumulated debt it has built up paid back.

It doesn't matter whether it's paid back by taxation or by printing money and reducing the value of the £. Neither is good news for you, share prices or the UK economy.

What you're telling me is that not only is your accumulated 20k of credit card debt not a problem but - because the bill won't come in until next month - you're fine to put a new sofa on there as well.

At some point the credit card company (= bond and currency markets at international level) will realise you can't afford to pay it back and will DEACTIVATE YOUR CARD.

Sure the governments don't WANT to remove the budget deficit, this year, next year, or at any time in the next few years. Did Iceland? Did Greece? But they don't have that choice, any more than you have the choice as to how long you rack up credit card debt before someone pulls the plug.

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In the main because the euro found support near its lows as China denied they were going to dump their euro reserves, the dollar and US treasuries are selling off a tad (euro/USD was oversold), causing money to flow back into risk assets, causing short covering giving a nice turbo boost and BP claiming operation Top Kill seems to have stemmed the flow won't have done any harm.

Or, if you're hard of thinking, something to do with the moon (that happens every ten trading days and thus any movement is always of average only 4 trading days either side of 'moon' day). I prefer the 'any day with a 1,2 or 3 in it' technique myself. That one has never let me down.

China are hardly likely to announce in public that they are going to be cashing in their Euros since that would instantly make them worthless.

Our chums in Asia can't win here. If the European governments are serious about their austerity program then one of their major export markets is going to be disappearing for the foreeable future. Moreover the recent round of budget cuts across Europe may not actually make any difference to the risk of systemic failure so the Chinese may have done their money whichever way they jump

It is not often that I agree with Bill Gross who invariably is talking his trading book but his comments on the likelihood of future debt 'restructuring' ( ie default) by countries such as Greece were worth reading

http://www.businessweek.com/news/2010-05-26/greece-debt-restructuring-is-inevitable-gross-says-update3-.html

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It will have to be removed one day, AND the accumulated debt it has built up paid back.

It doesn't matter whether it's paid back by taxation or by printing money and reducing the value of the £. Neither is good news for you, share prices or the UK economy.

What you're telling me is that not only is your accumulated 20k of credit card debt not a problem but - because the bill won't come in until next month - you're fine to put a new sofa on there as well.

At some point the credit card company (= bond and currency markets at international level) will realise you can't afford to pay it back and will DEACTIVATE YOUR CARD.

Sure the governments don't WANT to remove the budget deficit, this year, next year, or at any time in the next few years. Did Iceland? Did Greece? But they don't have that choice, any more than you have the choice as to how long you rack up credit card debt before someone pulls the plug.

It is true national budgets will inevitably have to be balanced and that austerity is guaranteed.

It does not necessarily follow that the international 'credit card' issuers are going to get their money back.

Bond and equity holders are in for a SERIOUS haircut on their assets before this is finished.

Just wait and see.

Edited by realcrookswearsuits
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