Monday, September 22, 2014

Oh Really" They are just realizing the market rally is fictitious!

 (Yahoo.finance.com) Finance ministers from the Group of 20, which includes the United States, the U.K, the European Union and China, warned at their latest meeting that financial markets may be headed for a slump. “Downside risks persist, including in financial markets,” the group said in a statement from Cairns, Australia. “We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility. At the same time, big companies have been buying back their own shares at a record pace, which protects investors in the short term by pushing stock prices higher than they’d otherwise be, but has two major downsides. First, stock buybacks can mask underlying weaknesses in the stock market, since they make demand for stocks seem stronger than it is. That can breed complacency, which is one of the concerns now. Buybacks also make a company’s performance seem better than it is, since the stock usually rises on a buyback, even though earnings don’t.   

(CERR Investments). Here they go again talking about a market correction.  Well if you don't know by now the market has already been in a correction.  It not for Fed involvement you would see the real size of the market. The big players have all the cards at this moment and the small time investor is being taken for a ride. Just think, we can't trade in and out of the market because that would be costly due to expenses being charged by our financial services. If markets correct watch how Mutual Funds react. Hopefully they have made the trade to safer investments before the correction happens. that is why we pay them. Our only hope is the long time horizon of the market it showing that someday it will bounce back. At least that is the hope. 

Get ready for the SEC finding more crooks, ponzy schemes, insider traders, and cheats when the market corrects. Money will be less diluted so companies will truly have to prove how they are making their money.