Monday, May 25, 2015

What Happens After The Holiday?

CERR Investments:  Is volatility coming now after Memorial Day is over and summer time begins?  Well it looks like things are shaping up that way.  REITS are down and Small Caps have paused.  Airline stocks are in the dumps even with low gas prices. What does this all mean?  Well the Feds are still trying to influence the markets by making us guess when they will raise rates. This game is not for the small investor but for the big institutions. The Big Guys don't know when to pull their money out of the markets due to the Feds. The rest of the investors are just  holding onto the ride because it is the best game in town. Interest rates on CD, Bonds, Money Markets, and Bank Accounts are so low that stocks is the only game in town that is seeing any growth. How long will that last? Right now it looks like the markets have hit a resistance level either pausing or going sideways for a couple of months. That tells me people are just waiting to see what happens next. However are the billionaires who are saying the markets will collapse pulling their money out of the market? I think not but when they do that will be a gauge. Image result for market depression

One interesting thing I am hearing is that market may start declining when baby boomers start retiring and are force to start taking withdrawals from their 401K accounts. Well that does sound concerning. Just think people will no longer invest their money in stocks? I think not. Baby boomers will still invest but at a slower rate and their kids will get what ever is left. If the market is good people will invest. It is only when you see things like "Fraud", "Credit Default Swaps", "Ponzi", "Greece", "Bubble" that you see people pull money out.  In order to make money somebody out their is doing some hidden things that will upset the markets once it is discovered and then the dominoes fall.

One last thing to mention is the ever presence fear of "War" breaking out someplace.  With oil prices falling a big migration has begun. People are leaving their countries in droves due to economic collapse due to falling oil prices. When hunger and poverty starts grasping these regions and the dictators can no longer hold up the fail ponzi states, then we will see real change..

Huffington Post: 

170 Kids On Their Own Among Migrants To Arrive In Indonesia

Washington Post: 

Honduran child migrants leave home because of poverty and violence