Skip to content

Need expert help on WHEN to buy, and WHEN to sell at Wall Street?

June 8, 2009

At times like these — when fundamentals count for nought and real numbers are hard to come by — it’s best you get all the help you can get to gamble invest at Wall Street. Timing is key say the experts….

Read on to get the inside track for your timing from source of story here.

Market Schizophrenia and the Madness of Crowds

by Martin D. Weiss, Ph.D. June 07, 2009

martin-weiss

While stocks have been rising, bonds have been plunging.

Rarely in my lifetime have I seen these suffer from a more extreme case of schizophrenia!

And almost never have I seen bonds follow stocks!

Nearly all of the time, it’s bonds that win this tug of war; and it’s stocks that succumb.

It makes sense.

  • Plunging bonds represent surging interest rates …
  • Surging interest rates are pure poison for corporate profits …
  • And any damage to profits must be reflected in plunging stocks.

extremely-dangerous

This chain reaction of events does not always unfold immediately. But the longer it’s delayed, the harder the subsequent fall.

And right now, the schizophrenic gap between bonds and stocks could not be more obvious or extreme:

Just since early April, while the Dow has risen by more than 12 percent, the price of 30-year Treasury bonds has fallen by nearly 12 percent.

For Treasury bonds, which generally fluctuate in tiny increments, that’s the equivalent to a traumatic stock market crash.

No stock market rally can withstand this pressure for long.

No investor in his right mind can stay fully invested in stocks with this kind of massive dead-weight threatening to pull him under.

Yet, strangely that’s precisely what hordes of “professional” portfolio managers are recommending: A FULL house of stocks in your investment portfolio.

That’s Not Just Schizophrenia!
It’s The Madness of Crowds!

Many readers commenting on my personal blog agree.

They note that investors seem schizophrenic — vaguely cognizant of the dangerous deficit crisis that’s driving bond markets into a collapse … but still buying stocks in a knee-jerk reaction to Wall Street hype.

Fortunately, you are mostly reluctant to buy stocks with this Sword of Damocles hanging over your heads.

Mike V., Grant, John F. and many others are among those disinterested in trading the lulls and short-term rallies in this continuing crisis. Instead of chasing stocks, they’re content to buy contrarian investors that will profit from the long-term trend.

As Mike says,

“Don’t get too crazy about short-term pops.
Let’s make money slowly and steadily.”

Others, however, would rather have it both ways: They want to be positioned for longer term bear market profits — AND, at the same time, they ALSO want to profit from intermediate market rallies or from stocks that rise when others are falling.

As Jack T. puts it, “I’d like to think I’m an investor who’s willing to make some money on the upticks while being positioned primarily for the Bear.”

But Greg P. writes that investing today, “seems like a crap shoot as opposed to an exercise in sensibility.”

So what’s the answer? What’s the best approach to investing in intermediate fluctuations that punctuate every major trend?

The vast majority of our readers know very well what’s needed: Expert help in timing short-term buy and sell decisions. Or as Doris J. put it, “Someone has to help me tell WHEN to buy, and WHEN to sell.”

Heads Up:
Major Announcement Coming Next Week!

Over the past few weeks, my team and I have been listening carefully to you — and we’ve been working feverishly behind the scenes to get you what you need in this schizophrenic market.

And this coming week, we’re going to make an announcement you’re going to love — a free gift to help you sharpen your timing skills and to more confidently go for substantial profits no matter which way the overall market moves.

So stay tuned and keep your eyes glued to your inbox.

Good luck and God bless!

Martin

P.S. I want to add a special thank you: I never cease to be thrilled with the faith, support and gratitude our readers express to us!

Don G. writes: “You, and your father before you, represent the very peak of wisdom and integrity in this uncertain but vital realm.”

Joseph K. says that our reports are his aces in the hole. “When you say buy, I buy; when you say sell, I sell — unless I’m away from home for a couple of weeks, in which case I generally lose a bundle.”

I deeply appreciate your support. I cannot thank you enough. Plus, I also find critical comments extremely valuable. Keep them coming!

From → Malaysia Upclose

4 Comments
  1. Christian permalink

    can you help answer a stock question?

    The company wants me to sign over my stock certificate to get the dividends after liquidation. I believe the total will be more than $9000.
    They have sold most of the business and will close business soon

    What they want me to sign is below on company letterhead. There are 5 total shareholders and I have 9 percent of the stock.

    On this date June 08, 2009 Christian xxx and xxx agree to the following. Christian xxx will be given 9% of any profits from xxxx profit split after all expenses have been paid or not less than $9,000.00 total to be made in two payments. First payment to be made in the amount of $4,500.00 on June 08, 2009 and final payment to be made upon complete dissolution of xxx and distribution of any remaining profits. Upon receipt of first payment Christian xxx agrees to sign and return stock certificate to xxx

    thanks,
    Christian

    – Hi Christian,
    i am sorry i cannot help you with your question. The person more eminently qualified to do so is Dr. Martin D. Weiss himself. Please copy and paste your question at the sites at these urls:

    http://www.moneyandmarkets.com/market-schizophrenia-and-the-madness-of-crowds-34123
    http://blogs.moneyandmarkets.com/martin-weiss/you-ask-well-deliver/

    i hope this will help. Thank you. –

  2. ruyom permalink

    I hope everyone studies this carefully crafted article by Awang Selamat (Utusan), one of the best apologists and spin doctors Umno has to offer us, and reflect on the cynicism, hypocrisy and corruption that opportunists hope might appeal to backwards feudal mentalities so beloved of those who walk the corridors of power in Putrajaya.

    Let us examine the Awang Selamat article.

    When Awang Selamat writes the malays have been betrayed, then he is keeping very good company indeed. Adolf Hitler repeatedly wrote the Germans have been betrayed by the minority Jews. Karadzan Milosevic repeatedly said the Serbians have been betrayed by the minority Bosnians.

    Robert Mugabe repeatedly said the Zimbabweans have been betrayed by the foreign West. The BJP regularly say that the Hindus have been betrayed by the minority Muslims.

    Nevertheless I am certain that the Malays nowadays are not as uninformed as Awang Selamat and his political masters in Umno would like to believe.

    The fact is, Malaysia is fast becoming another basket case country – and the most important thing if you can’t fix the problem or won’t fix the problem is that – Umno can still make sure they win the next elections by fixing the blame.

    There is rampant theft by Umno elites, wholesale corruption by Umno cronies whereby the rich and connected malays are entitled to rob the poor and everybody else under the guise of social justice via the NEP, Umno nepotism in the leadership selection process, a fixed judiciary by Umno, a fixed police by Umno and a fixed electoral commissions by Umno.

    Why should Umno leaders fix the problem when they are getting richer by the minute via corruption, cronyism and nepotism?

    Awang Selamat like other Utusan hacks have been hired to do the job for Umno – make sure Umno can fix the blame onto the non-Malays via a good dose of racist rhetoric, scare mongering, hate mongering, bigotry and ethnic xenophobia – straight from the serious and weighty editorial section of Utusan.

    They all have been victims – the minority Bosnian Muslims in the former Yugoslavia, minority Jews in Nazi Germany, minority Muslims in BJP India, minority whites in Zimbabwe and of course, the minority non-Malays in Malaysia.

    There are no prizes for guessing who is being prepared for the role of the fall guy, scapegoat and bogeyman by Umno in Malaysia – it is Hindraf, the Bar Council, Bersih, DAP, PAS and PKR.

    Adolf Hitler, Karadzan Milosevic, Robert Mugabe, BJP and Umno gangs all have one thing in common – they became obscenely powerful, filthy rich while their countrymen suffered, starved and died for it.

    All the while their leaders shouted – traitor this and traitor that – as if the louder they shouted the more easily their lies could be believed.

    Luckily there are a lot of Malay-Muslims in Malaysia who think for themselves, and not swallow everything Utusan tells them to. How stupid do Umno spin doctors think the rakyat have become?

    As for rich Umno elites getting contracts and scholarships, and poor bright non-Malay students not even getting a place in our higher institutes of learning, this is Umno version of social justice – what a joke, what a travesty, what a monstrous lie.

    The fact is Umno cannot make enough money to support their mansions, exotic cars, and wives without stealing from you and me – so Umno version of social justice will always be Umno steals from everybody – you should know by now Umno loves stealing from the poor because the poor are just such easy targets – Malays, Chinese, and Indians – semua di makan oleh Umno – sedapnya!

    Awang Selamat appears aggrieved that today generation of Malay Muslim leaders might actually believe in freedom, equality and fraternity. He might be upset that some Malay Muslim leaders are trying to preach goodwill and compassion to everyone – regardless of race or creed.

    I suppose this is a shocking betrayal of Umno apartheid policies where in Malaysia today you can be threatened, mollycoddled, scapegoat-ed or jailed strictly on the basis of your ethnic origins.

    As a word of caution, I am sure the boys at Utusan will mix it up for their readers – sound conciliatory at some times and then sound racist xenophobic at other times – because even the most stupid people will be able to see through their ploy.

    So recently when Muhyiddin ostensibly tells Utusan off in public for being too racist, what he actually means is this – You Utusan hacks are fooling nobody so please change tactics for now – later when the climate is more conducive, then you can try being racist again!

    Whether the average Malay thinks Awang Selamat is talking sense or nonsense, it is immaterial to me as I have already emigrated to a country where they insist on equal citizenship, equal opportunity, inter racial solidarity, freedom of speech, rule of law, and freedom of religion – and they insist you get it for free.

    Although I love my place of birth, and I am used to racial and religious idiocy from people like Awang Selamat, I see no good reason why my children should have to put up with the same institutionalised racism in a rapidly declining Third World basket case like Umno apartheid Malaysia.

    In future, it won’t really matter if the next generation become university graduates or not because the Malaysian public universities will be so rotten that the degrees will be just worthless pieces of paper. What future will the kids have then?

    The fate of Malaysia will always be in the hands of the malays. I hope they will choose wisely but then again, it is way too late for me and my family, because I am busy creating a life for myself abroad.

    With people like Awang Selamat to lead the way for Umno, in spite of the pain of separation from old friends and family in Malaysia, and loneliness I feel abroad, I smile to myself every time I read Utusan, because I definitely know I made the right decision leaving for a country abroad that actually has a future.

  3. good info thanks of lot

  4. hghggghhhhhhh

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: