1811 Capped Bust Half Dollar

1811 Capped Bust Half Dollar

Saturday, May 14, 2016

Another Market Top ?

As we know now nothing is a given in the stock market. The problem today is the unprecedented National Debt of which never had to happen. Had our elected officials taken action around 2002 when Bush warned about subprime loans then our country and the world would be in a much better place. How this is resolved is another thing. Europe totally messed up with the immigration thing. Sweden is over-run with them. Someone explain how they will support them. Political correctness got us here and sure won`t be the answer to correct it. It is going to take a hard line stance back to common sense. That being said the stock market now has a triple top and is pointed down. So do we just sit in a money market account ? Depends on your comfort zone. I do not believe in the buy and hold strategy. I am not a day trader either. I chart and use longer swing trades. With the market probably headed lower money can still be made, just think out of the box in reverse. Like when the market is totally tanked certainly is a time to go long, just the reverse now. There are ways to short the market with ETF`s. Like I mentioned before it depends on your comfort zone. In all honestly if I owned a corporation in the stock market I would be hedging against a declining stock value. How some do it is another thing but as investors we should too. It is known oil companies have done just the same.

This leaves a question with Gold and Silver and the rising dollar with the possibility of a declining market. Gold and Silver sparkled after the economic collapse of 2008. Just check their charts. Whether we can see a dip with them is yet to be seen but I certainly suggest consideration of some diversity of physical and paper investing. It could be a long time before oil goes back to $ 100.00 and it could very well drop back in the coming week or so. Watch the Dollar, yesterday was a strong day up and it could move up quite a bit more resulting in pressure on the stock market and Gold and Silver. Oil could be affected too.

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