Monday, July 27, 2015
CERR Investments.It appears that the wool is finally being dropped from peoples eyes. Sooner or later we will understand that this stock market is only up due to government intervention. China seems to know that and is trying to replicate the same thing by shoring up its economy with money and zero interest rates. Yahoo Finance reported today that industrial profits in the world’s second-biggest economy fell in June, sending Chinese shares tumbling on speculation a government intervention to stem a market selloff can’t be sustained amid weak growth. Now stock investors are waiting to see what the Feds will do and if they will try to raise rates this September. What ever happen to fundamentals and technicals? How is the growth rate for the US? It appears stock analysis went away in 2009 when the government took money from ordinary savings accounts, bonds, money markets - so that people would be forced to invest in stocks. How long will this game last remains to be seen.
Sunday, July 12, 2015
CERR Investments. Lately I thought the circumstances in Greece and China would be enough to rattle the markets so that there would be at least a 5% decline in the markets. It appears that Governments and Big Investors have decided to play ball together and prevent that from happening. No decision has been made in Greece as of yet and still the market climb last week. China still has the same problems it had before the decline but Big Institutions have decided to buy back in. Is it really good to artificially hold up these market margins? Only time will tell.
Thursday, July 2, 2015
CERR Investments: Isn't it strange that the Big Institutions are already saying that the Feds should delay interest rate hikes. Big Institutions have had so much free money since 2009 they will not want to change for a while longer.Money market rates, CDs, Bank Accounts, any investments that are small and less risky are not making any money. The game is still is to drive people towards riskier stocks and protect the investors who have already invested. The problem with that is outside forces. Now you see Greece, Employment, China, and the "Unknown" entering the discussions and becoming more of a concern. The small investor was burned badly in 2009 and was not helped very much with the financial bail out. The small investor lost all of his capital so there was no way to recoup or reinvest. Also because wages are stagnant people just don't have that extra capital to invest today. Big Institutions are not hiring more people because they are trying to get as much profit as possible. However once companies start raising minimum wages we may see some changes. Tickle down theory is just not working.