Are the recent highs in the stock market averages real, or illusory? That depends on whether you have a system to lock in the gains, and eliminate any chance of losses. I talked about that system in my best selling book The Great Wall Street Retirement Scam. Since the stock market crash of 2008 the major indexes have moved in one direction ever higher and higher. The reasons for the missile like trajectory of the markets ranges from “higher corporate earnings” to “free money from The Federal Reserve”.
Right now in the world, the risks in financial markets are beyond the understanding of even the smartest minds on Wall Street. If you remember back to 2008, even the smartest minds at the major Wall Street firms and major banks had no idea of the risks that existed. In just a short period of time hundreds of billions of dollars were lost, retirees saw their life’s savings evaporate, and some of America’s most respected financial firms went out of business.
I see the stock market today like a ferris wheel. If you were to fall from the top of the ferris wheel, certainly you would be hurt very seriously, and even death could occur. However, if you fell out of the ferris wheel from the bottom, you might only have a few scrapes if that.
There is more money in the financial markets of the world than at any time before. Because of the massive manipulation of money by The Federal Reserve, money that must be put to work by mutual funds, pension managers and private equity funds has been forced to take more risk in stocks. Like the rider of a ferris wheel, those investors who have ridden the market to the top, or have just gotten on at the top, will most certainly get hurt when they fall from the top. Some will get hurt seriously when they fall, and some will not recover.
Smart money has already left the markets.
The smart money is waiting until everyone is screaming to get off the ferris wheel.
That is the best time to buy.