A negative week with the Dow Jones down 48 points (-0.18%) and the Nasdaq down 207 points (-2.55%)
The stock market is behaving, more or less, as it should. If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here
The week has ended on an interesting note. Barack Obama came out swinging at Mr. Trump in his I AM BACK! Obama refers to himself 102 times during 64-minute speech. Luckily, Mr. Trump wasn’t far behind in touting his own amazing economic accomplishments.
So, you might be wondering, what are these two astute deep state operatives fighting about? You got it. In part they are fighting over the ownership of the biggest financial bubble in human history. Obama says that it is his, while Mr. Trump proclaims it is entirely of his own doing. And that, ladies and gentlemen, is the sad state that our Nation exists in today.
In the meantime, things are not looking particularly good if you think Warren Buffett might be good at investing.
Beware Buffet’s Words: These 3 Critical Stock Market Indicators Signal Huge Losses Ahead
Last month, I wrote a piece about Warren Buffet’s favorite stock market metric and how it was signaling huge losses ahead.
If you haven’t read it yet – you can here. It’s even more relevant today.
And though Buffet’s favorite market indicator’s signaling huge danger ahead for investors – he just recently preached that stocks are still attractive.
This seems rather contradictory if you ask me. . .
Even though his favorite market value metric is at an all-time high – more so than during the DotCom bubble and Housing bubble. And with the S&P 500, NASDAQ and Dow Jones Index at record levels – Buffet’s still recommending stocks.
But, here’s the best part: he went on to say that he believes there will be another stock market crash eventually.
So, why does he talk about buying stocks when he’s expecting a coming crash?
His reasons are pretty simple: investors can’t time when the market will crash. So instead of sitting on the sidelines – waiting and missing the upside – just buy now. And when market prices do crash eventually – which he acknowledges they will – you can simply buy more at lower prices (also, he adds, compared to bonds – stocks are more attractive).
I kinda-sort-of agree with him. It’s not the best idea to try and time a market crash, as many value guys call it a ‘fools errand’.
There’s always that one person (we all know them) who thinks they will sell out right before prices collapse. But in reality, it never works out that way.
Do not listen to what Mr. Buffett has to say, instead, do as he does.
If you recall, Warren Buffett sold a ton of long-term puts in the midst of financial crisis in 2008-2009. A move that has contributed Billions to Berkshire-Hathaway profits ever since. Considering his own overbought indicators, is Mr. Buffett doing the same on the call side?
We might have an answer. If you would like to find out what the stock market will do next, in both price and time, based on our mathematical and timing work, please Click Here