CNBC Writes: Why long-term investors should buy this selloff
After a year of steady and quite remarkable gains, fear has crept back into the stock market. Concerns about the U.S. economy have joined emerging market weakness and jitters about the Federal Reserve’s stimulus reduction to send the S&P 500down 6 percent from the high reached Jan. 15. But savvy traders are advising long-term investors that this selloff is presenting a terrific opportunity to buy stocks at a discount.
“If you’re a long-term investor, now’s the time to be allocating,” said Rich Ilczysyzn, senior commodities broker at iiTrader. “I know there’s a lot of pension fund capital waiting to be allocated. They may wait for a specific trigger, maybe 5 percent, or maybe 10 percent. But it’s not going to give the retail guy a lot of time to jump on. And what’s going to happen is, people are going to miss the absolute bottom.”
Read The Rest Of The Article Here
Only the pump and dumpers or the idiots in the financial media can say that a mere 6% selloff is a “buying opportunity of a lifetime”. I think that teach that phrase in the stock broker school to be repeated like a retarded parrot. Well, I guess I shouldn’t expect anything else from CNBC, a perpetual BS machine.
I would admit to one thing. It was quite entertaining to watch CNBC on huge down days in 2008 and 2009. To watch their “deer in the headlights” faces as they whined while trying to figure out why the collapse was happening. According to them, no one saw it coming.
WRONG, dear talking heads. Plenty of people saw it coming, including myself, and have tried to warn others. Yet, no one wanted to listen. We have the exact same situation today. That is fine by me. That is human nature and I have no desire to shove my work or opinion down anyone’s throat.
At the same time, one reality remains. The stock market is incredibly overpriced. Particularly, if you take credit and speculation into consideration. The most important point to understand here is that corporate earnings over the last 5 years have been driven by the same credit infusion (by the FED to the tune of $85 Billion a month + negative interest rates) that spilled into the stock market. When this QE goes away and/or when the velocity of credit slows down, both happening now, the stock market as well as the earnings will collapse.
Leading to a significant recession and a massive amount of wealth disappearing into thin air. As I have already mentioned on this blog a number of times, my mathematical work has confirmed that the bull market has already topped out on December 31st, 2013 and the bear will take us into the 2017 bottom. I am not sure if I can be any more clearer than that.
As such, if you want to listen to retards on CNBC (no offence to the genuinely challenged community) telling you that this is a buying opportunity of a life time, go for it. Just ask yourself, where were they when the real buying opportunity presented itself in the March of 2009.
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
