Financial Advisers Now Shaming Investors Into Overpriced Equities

daily chart ADecember4 2014

12/4/2014 – A down day with the Dow Jones down 14 points (-0.08%) and the Nasdaq down 5 points (-0.11%). 

The market continues to perform as anticipated. Forget about that “good news is bad news and bad news is good news” stock market adage. We now exist in an alternative universe where everything is good news. Thanks to the FED. Consider the following stupidity.

I am not entirely sure why anyone pays attention to the ECB’s all talk and no action policy, but fair enough.  At the same time I am sad and discouraged that we live in the world where insane monetary policy is viewed as a solution to every slowdown. Where buying speculative assets and creating  massive worldwide equity bubbles is viewed as “stimulating the economy”. As Bill Gross says….”You can’t cure debt with more debt”. Crazy.

My initial reaction was……great…..financial advisers are finally doing their job by trying to warn their clients about today’s unsustainable valuation/speculation levels. NOPE. NOT EVEN CLOSE. They are shaming their clients for sitting on the sideline. That’s right, they are shaming people into investing at today’s exuberant valuation levels.

Just imagine a financial adviser pushing you to go LONG in January of 2000 and/or October of 2007 and you will have a clear understanding of what they are trying to do. You might be lucky enough to scrape a few % point of remaining upside only to see your portfolio suffer massive losses when a bear market finally rears its ugly head.

In other words, this is not going to end well.

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. December 4th, 2014 InvestWithAlex.com

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