If you look to the tags section on the side of this website the 2nd most popular topic I post about is things relating to the Economy. Until I made this post I never realized how often I discussed it but I guess it just proves how interested in the subjects of economics and markets. To be honest my personal portfolio and those I manage have steadily outperformed the markets, I am not an insider by any stretch nor even an expert but more of an educated layman who enjoys learning.
Today though I write though as somewhat of a cautionary post. Since the DJIA was around 15,000 and gold was under 300 and ounce, I have been advising people to steer clear of the market and move fiat currency into real assets. I made this post Nov. 7 2009 titled “The Recession Is Over, My Ass” which basically flies in the face of everything you hear regurgitated daily by the media. I encourage people to read that article as well.
On May 6 2010 the DJIA suffered it’s worse single day loss since 1987. When I heard this immediately I thought of 2008 when the market was in literally freefall in it wasn’t uncommon to have 500 point moves in a single session. As evidenced by my earlier post you can see that we are in more precarious footing today than ever and to assume that things are fine is asinine.
The cracks are spreading in the dam and it is only matter of time until it breaks. It could be months, years or even decades although I would be extremely surprised if it was more than a couple years.
Needless to say for the sake of time, I would advise anyone who rode the market down from 15k to 6k back up to 11k to cut your losses and get the hell out. Take this 100% rebound off the lows as an absolute Godsend and don’t look back. We are on an unsustainable path as anyone with even a basic understandings of economics knows. You’ve gotta know when to hold em and know when to fold em, know when to walk away and know when to run. Now, is the time to run and fast.