Shocking: American Household Net Worth Collapses
American middle class continues to vanish at astonishing speed. At least according to the new study published by Russell Sage foundation For most families, wealth has vanished
The study, which measures the average wealth of U.S. households by income level, reveals a startling decline in wealth nationwide. The median household in 2013 had a net worth of just $56,335 — 43% lower than the median wealth level right before the recession began in 2007, and 36% lower than a decade ago. “There are very few signs of significant recovery from the losses in wealth suffered by American families during the Great Recession,” the study concludes.
I have covered the subject matter in my previous posts titled Guillotine Sales About To Surge. Make no mistake, the American middle class, and not the rich, is the driving force behind America’s success. I continue to believe that by decimating the middle class the US Government has undermined the very foundation of America’s future.
In other words, what the FED did over the last 20 years is nothing short of criminal. By concentrating of bubble blowing, asset appreciation and capital misallocation, the US Government and the FED have, for the most part, benefited only the rich. The problem is, no economy can function like this over an extended period of time. Rich or not, an economy with no middle class eventually collapses and becomes a banana republic. Unfortunately, we are approaching that threshold at breathtaking speed.
Daily Stock Market Update. June 24th, 2014. InvestWithAlex.com
A down day with the Dow Jones down 119 points (-0.70%) and the Nasdaq down 18 points (-0.42%)
As the day started a lot of financial media outlets jumped on the “This Bull Market Will Never End” horse proclaiming all kinds of crazy stuff. Here is just a small sample.
- As Dow nears 17,000, the worrywarts still speak loudest
- The 10 Stocks That Will Lead the DJIA to 20,000
- Bull markets don’t die of old age, why Dow 44,000 is coming
For god’s sake, will someone just come out and say that the Dow is going to 500,000 by 2098? Might as well. Yet, despite all this bullish sentiment the market promptly turned around and sold off to the tune of 140 points.
More importantly, despite all of this bullish sentiment the Dow is only 220 points higher than its December 31st top (an important point that I might explain later). Point being and as I have suggested before, the Dow remains in a very tight trading range, accumulating energy for a massive move. That move is just around the corner.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. June 24th, 2014 InvestWithAlex.com
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Daily Stock Market Update. June 24th, 2014. InvestWithAlex.com Google
Shocking Truth: The Smart Money Has Missed This Stock Market Rally.
According to the WSJ, a multitude of large investors have missed this stock market rally. And we are not talking about the recent rally (or lack thereof), but the rally since the 2009 bottom. Big Investors Missed Stock Rally
The institutions, ranging from large corporations such as General Motors Co.GM +0.07% to big universities such as Harvard, have been shifting to hedge funds, private equity and venture capital. But while these alternative investments outpaced stocks during 2008’s market meltdown and are seen as potentially less volatile, they have badly lagged behind the S&P 500 since 2009, a period in which U.S. stock indexes have more than doubled.
If you actively participate in financial market this shouldn’t surprise you. After all, it is the human beings in those organizations who make the final investment decisions. That makes their thoughts, feelings, emotions and decision making processes identical to almost everyone else on Wall Street. It would only be appropriate if they make the same mistake.
Shocking Truth: The Smart Money Has Missed This Stock Market Rally. Google
Investment Wisdom Of The Day
“If I’d only followed CNBC’s advice, I’d have a million dollars today. Provided I’d started with a hundred million dollars”. -Jon Stewart
The Hunt For 10 Baggers (Book…Introduction…Part 2)
Continuation of part 1……….As you can very well understand, pick just one of these home runs and you will be able to retire before Donald Trump does, pick 10 in a row and you will be able to fund NASA for at least a few years. Hence the significant interest in the subject matter.
Stocks like Franklin Resources. If you would have invested $10,000 in Franklin Resources (BEN) in February of 1989, today you would have over $580,000. A “58 Bagger” or a 5,700% return on your investment. If financial services companies do not spark your fancy perhaps the equipment maker Danaher Corp (DHR) will. If you would have invested just $10,000 in April of 1990, today you would have over $800,000. An “80 Bagger”. I bet you can smell the sweet scent of easy money right about now, yet very few investors are able to first identify and then to hold on to such amazing investment opportunities.
We are here to change that. During the course of this book we will look at 10 such individual stocks, the companies that have appreciated at least 10X over the last 5-25 years. We will go back in time to the point before the original stock run up ensued. We will analyze the underlying companies in great detail to ascertain if the companies in question had certain characteristics that can be attributed to potential Tenbaggers. In particular, we will look at such companies from three different angels.
- Fundamental Analysis: I believe it is important to understand any Tenbagger’s fundamental starting point. Prior to run up initiation. We will look at various valuation metrics, analyze financial statements, look at management, competition, products and product pipelines. Anything and everything in order to understand where the company was and why such a massive growth in its stock price was about to occur.
- Technical Analysis: We will look at the underlying charts in order to determine if the Tenbagger in question gave us any technical hints of what was about to come. The fact that the stock price was about to stage a massive multiyear rally. Plus, we will look at various entry points where we could have taken a position on purely technical assumptions and if we would have been able to ride the stock price all the way up on such technical attributes alone.
- Timing/Mathematical Analysis: Most importantly, I will introduce my proprietary timing/mathematical analysis into the mix to see if such massive stock rallies could have been predicted and anticipated. Plus, we will look at the durations of these rallies in order to identify proper exit points and what that means for the future of the underlying companies.
To Be Continued…….
The Dow Is Going To 44,000. Minus 34,000.
I was waiting for this. Nothing screams out “Market Top” more than some perma bull claiming that the market is going to hit 44,000. Bull markets don’t die of old age, why Dow 44,000 is coming
“We’ve been on record since the 4th quarter of 2008 saying that U.S. stocks were entering a 15 to 20 year bull secular bull market. While people have come around to being more bullish I don’t think people believe we have another 10 years left.”
And that’s the biggest problem with these idiotic projections and people claiming that 2009 bottom was the end of the bear market and the beginning of the next secular 20 year bull market. I guess it’s alright to have a 20 year secular bull market, yet it is impossible to have a 20 year bear market.
I have some bad news for them. If you study the market going all the way back to the first day of trading (May 22nd, 1790), you would soon realize that Bull/Bear markets alternate in almost perfect 17/18 year cycles. Meaning, the 2009 bottom was a mid cycle bottom similar to 1974, 1937, 1908, etc….. and not the termination point of the bear market that initiated on January 14th, 2000. The final 2014-2017 stage of this bear market will prove me right without a shadow of the doubt. Get ready.
Daily Stock Market Update. June 23rd, 2014. InvestWithAlex.com
A mixed day with the Dow Jones down 10 points (-0.06%) and the Nasdaq up 1 point (+0.01%).
Over the last two years the Dubai Stock Market (DFM) has been one of the best performing stock markets in the world. It could do no wrong, surging higher on almost the daily basis. So much so that most market pundits were falling all over each other (just a few months ago) while arguing that the DFM is only going higher. Today, the DFM has entered an official bear market territory after declining over 20% in a span of a few weeks. That 1,500 support looks fairly solid.
So what?
Well, the bullish sentiment readings for the DOW today are more extreme than they were for the Dubai Stock Market back at its early May top. The VIX, various bull/bear indicators and the bear capitulation discussed on this blog is a clear indication of that. Take it for what it is. One day the DOW will top out and begin a massive bear market. Whether you want it or not.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. June 23rd, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Daily Stock Market Update. June 23rd, 2014. InvestWithAlex.com Google
What’s Driving The Stock Market Higher?
As you very well know, many have been scratching their heads while trying to figure out what is pushing this highly speculative stock market ever higher. I have already illustrated a number of times that institutions are net sellers and while retail investors are buyers, the overall amount is not nearly enough to push the stock market to all time highs.
So, who is buying?
In-short, corporate buybacks are the most likely culprit in today’s stocks market rally. The rich get richer as stock buybacks surge.
Repurchases and buybacks soared nearly 60 percent in the first quarter, putting a floor under a market that struggled amid a brutal winter and an economy that contracted at least 1 percent. Companies have used bargain-basement interest rates to borrow money for stock purchases. In all, corporations increased buybacks by 59 percent to $159.3 billion, according to S&P Dow Jones Indices. That’s up strongly from the $100 billion for the same period in 2013 and a bit below the $172 billion high set in the third quarter of 2007, just before the financial crisis and market crash that sent indexes plunging 60 percent.
Nothing new here as corporations continue to act as Individual/Retail investors. AKA…..Stupid Money. What’s worst is that they are borrowing money to speculate in their own stocks on margin. Driving up stock bonuses and corporate payouts for their management teams. Yet, we all know how this story ends. Just take a look at 2007-2009.
