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Investment Grin Of The Day

An engineer dies and is sent to hell.

He’s hot and miserable, so he decides to take action. The A/C has been busted for a long time, so he fixes it. Things cool down quickly. The moving walkway motor jammed, so he un-jams it. People can get from place to place more easily. The TV was grainy and unclear, so he fixes the connection to the Satellite dish and now they get hundreds of high def channels.

One day, God decides to look down on Hell to see how his grand design is working out and notices that everyone is happy and enjoying umbrella drinks. He asks the Devil what’s up?

The Devil says, “Things are great down here since you sent us an engineer.”

“What?” says God. “An engineer? I didn’t send you one of those. That must have been a mistake. Send him upstairs immediately.”

The Devil responds, “No way. We want to keep our engineer. We like him.”

God demands, “If you don’t send him to me immediately, I’ll sue!”

The Devil laughs. “Where are YOU going to get a lawyer?”

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Investment Grin Of The Day Google

Are Social Media Stocks/ETF About To Get Destroyed?

Let’s take a quick look at two charts. Facebook (FB) and Twitter (TWTR).This is rather simple. Fundamentaly speaking, both companies are massively overpriced.  Technically, Twitter is on the verge of breaking below a massive muti-year rising wedge.

Should it do so, I wouldn’t be surprised to see Twitter below $15 a share over the next 12-18 months. Facebook is about to break below a major/important support level. The problem is, Facebook has massive gaps all the way down to $20 a share. Gaps that must be closed sooner or later. That is not a good sign.

Hmm, I wonder what happens next. 

Twitter TWTR - InvestWithAlex

Facebook FB - InvestWithAlex

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Are Social Media Stocks/ETF About To Get Destroyed?  Google

What You Should Expect From The FED Tomorrow

Daily Chart April 28 2015

4/28/2015- A mixed day with the Dow Jones up 72 points (+0.40%) and the Nasdaq down 5 points (-0.10%). 

So, does it matter what the FED says tomorrow? Not really and not if you value your money. Here is why.

As far as I am concerned there is only one thing, and one thing only, that is holding this market together. The FED and investors blind faith in the fact that the FED will be able to stop any and all market corrections. Either through QE, interest rates or by simply making statements to the press. So much so that every single bottom over the last couple of months can be attributed to the FED talk.  El-Erian tends to agree. Danger, Danger — ‘Market Is in Love With Central Bank Trade’

Here are the 3 reasons as to why this “herd mentality trade” will blow up in investors faces. And much sooner than most people believe. 

  1. The Fed is a Reactionary Force: If we study the past, the FED has always been late to react to any and all market developments. For instance, Bernanke was talking about the accelerating US Economy as late as Q1 of 2008. They have no clue and there is no reason to believe that this time will be any different.
  2. The Market Will Decline Anyway: My mathematical and timing work makes it very clear. Over the short-term the market is independent of all fundamental inputs. That is to say, the market will top out on a certain date in 2015 and initiate its decline. No matter what the FED does or say. That day is approaching fast.
  3. Investors Will Lose Confidence In The FED: This is unavoidable. As soon as the FED is unable to backstop the next decline, most investors will lose confidence in a millisecond.  That in itself will accelerate the decline

The main take away from the points above is as follows. The FED trade will be in place until it is not.  The problems is, by the time most investors realize this fact, it will already be too late. By the time the analysis above becomes a reality, the stock market will already be down 10-25%.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. 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. April 28th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

What You Should Expect From The FED Tomorrow Google

Shocking: Why Even Investment Legends Make Mistakes At Market Tops

soros and duckenmillerThis is rather a sobering look at how most investors think and behave at market tops. Forget about your mom and pop retail investors, we are talking about the top 0.5% of professionals out there. 

Last month, Stan Druckenmiller recounted his own experience with capitulation and performance chasing when he was the lead portfolio manager for George Soros and the Quantum Fund:

“I’ll never forget it. January of 2000 I go into Soros’ office and I say I’m selling all the tech stocks, selling everything. This is crazy… Just kind of as I explained earlier, we’re going to step aside, wait for the next fat pitch. I didn’t fire the two gun slingers. They didn’t have enough money to really hurt the fund, but they started making 3 percent a day, and I’m out. It’s driving me nuts. I mean, their little account is like up 50% on the year. I think Quantum was up seven. It’s just sitting there.

So like around March I could feel it coming. I just – I had to play. I couldn’t help myself. And three times during the same week I pick up a – don’t do it. Don’t do it. Anyway, I pick up the phone finally. I think I missed the top by an hour. I bought $6 billion worth of tech stocks, and in six weeks I had left Soros and I had lost $3 billion in that one play. You ask me what I learned. I didn’t learn anything. I already knew I wasn’t supposed to do that. I was just an emotional basket case and couldn’t help myself. So maybe I learned not to do it again, but I already knew that.”

And while most investors believe it is impossible to predict the market top, I tend to disagree. When the TIME is right, I intend to nail it to the day and within 100 point accuracy.

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Shocking: Why Even Investment Legends Make Mistakes At Market Tops Google

Mike “MISH” Shedlock & Two Hedge Fund Managers Discuss The Stock Market, Currencies, Commodities & Investment Ideas – Weekly Podcast

March 7th, 2015: We have a great show for you this week. Financial adviser and one of the most popular/prominent financial bloggers out there, Mike “MISH” Shedlock, joins hedge fund managers Matthew Demeter and Alex Dvorkin to discuss the following topics….

  • Mish’s Blog can be found here. MISH’S Global Economic Trend Analysis
  • What the stock market is doing and what we expect to happen over the next few weeks.
  • COT Report and what the big guys are buying. Listen to make sure you are not on the wrong side of the trade.
  • Deflation, employment numbers, gold, geopolitical and macroeconomic issues.
  • A multitude of great investment ideas and various tops/bottoms that can make you a ton of money.
  • And of course, much…..much more.

Don’t miss this one and join us again next Saturday. 

Listen to the podcast by clicking on the player above. If you prefer iTunes, please Click Here

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Mike “MISH” Shedlock & Two Hedge Fund Managers Discuss The Stock Market, Currencies, Commodities & Investment Ideas – Weekly Podcast Google

You Know The Stock Market Is About To Top When…..

You know a TOP is near when clueless mainstream financial media talking heads start making fun of well researched bears. No further comment is necessary here.

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You Know The Stock Market Is About To Top Out When….. Google

What Stocks Are Top Hedge Fund Managers Buying?

duck tales investwithalex2

It is always important to know what stocks spark the fancy of some of the top money managers out there. The list below consists of the stock picks discusses at Pershing Square Capital Management’s (Bill Ackman) 2015 Harbor Investment Conference.

  • Thermo Fisher Scientific
  • Monsanto
  • Flextronics
  • McDonald’s
  • Valeant
  • Howard Hughes Corporation
  • NorthStar Asset Management
  • Liberty Media Corporation
  • Tesoro Logistics

And as always, do your own research before you pull the trigger.

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What Stocks Are Top Hedge Fund Managers Buying? Google

We Have A WINNER!!!

We have randomly selected a winner for our InvestWithAlex 1-Year Premium Account Giveaway. Click Here

I would like to thank everyone for participating. And while not confirmed, we might do another giveaway next year.

Winner: Mr. Gerhard Polacek

Thank you for playing.

Why Are Bond Yields Collapsing? – Daily Podcast

Listener Question: Why Are Bond Yields Collapsing? – Daily Podcast – Listen to our short 5-10 minute podcast to find out. Plus, don’t forget to email me your questions.10-Year Note2

10-Year Note

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Why Are Bond Yields Collapsing? Google