PatriotsReign

I've been saying that I believe the markets will crash again for a while. I'll also admit that I thought it would have already started by now as the signs have been there for a while.

Here's a great article that supports this view. After reading it, I've decided to put all my 401k money into safe haven, guaranteed return vehicles.

"The Securities and Exchange Commission voted on Wednesday to limit short-selling of stocks that are falling rapidly in price, The New York Times’s Floyd Norris reports. The rule was adopted on a 3-to-2 vote, with the two Republican members saying that no case had been made to justify any further action against short-selling.

The limits would apply to any stock whose price has fallen at least 10 percent during a day’s session. After that, short-selling would still be legal but not unless the sale was at a price higher than the best bid price then available.

"Short selling restrictions are a great indicator of imminent market crashes. The biggest market declines in history all happened shortly after short selling restrictions were introduced."

Mish's Global Economic Trend Analysis: Short Selling Restrictions "A Great Indicator of Imminent Market Crashes"

Once again, we have our gov't trying to keep prices, in this case, stock prices, artificially high. History tells us that without exception, these policies will fail. You can't keep the price of anything artificially high for long. Imagine our gov't telling investors they can't short stocks that are rapidly DECREASING in value but making no rules against stocks that are increasing in value?!! WTF?

This is as bad as the HAMP policy for troubled home owners. "We will do anything to help keep people in their homes!" Again...WTF?? Even if they can't afford that home? Yeah, ok...thank you Mr president. That makes a LOT of sense. Please let us know if you'll need more of OUR money to help!

It's nice to know that our esteemed federal public servants keep insisting upon "pissing into the wind" They just grab handfulls of money and throw it at the economy and like a barrelling freight train headed for a sharp corner, this economy will remain derailed.

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"No one walking this earth knows what is truly righteous"

BelichickFan

I have about 60% is safe places also; the concept that everyone's 401K got crushed is silly given that all 401Ks have a cash, or equivalent, option. The problem is the "guaranteed return vehicles" are returning about nothing and losing when inflation is factored in. Even treasuries are returning almost nothing with Stocks iffy and most even more bearish on Bonds than stocks. There's really no good places to go, 5 year CDs are making less than 3% right now.

PatriotsReign

It's just amazing how many and how quickly investors have been buying & driving stock prices higher since the bottom last year. It's as if they believed this was just another recession.

To your point regarding few interest earning options....Hey, if you put most of you $$ into tiny interest earning vehicles and the market crashes back down to 7-8,000, it's like you earned a *****load!! Imagine the savings!

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"No one walking this earth knows what is truly righteous"

Michael

Which is why communists like Van Jones ask things like, How is that capitalism working out for you?" They can't see that capitalism is never allowed to work in this country. It's always corrupted by socialist/communist/progressive/ultra liberal big government hack-a-rama social programs and ideology.

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