SP500 0.58% 2,958.8 standard & poor's 500

BBUS, page-5045

  1. 1,904 Posts.
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    Womtrade & others,

    I agree 100% with the economic assessments, things are terrible, so many workers in the US have been laid off and had their hours reduced.
    There definitely is a disconnect between the economic reality and the market/stock prices.

    But you have to ask why!

    Rather than continue to knuckle down and buy BBUS or short stock or not buy any stock that seems to go up and up and up in the face of all of this pain, you have to understand why!

    The FED!

    The FED did in in 2008/9 and are doing it again, only this time, they have learnt a lot of lessons and are doing things differently, better, if you're a stock bull.

    Not only are they helping to bridge the gap for those who have lost jobs or had hours reduced( thus keeping the same amount of liquidity pre covid) but they are also printing money and buying $41billion worth of bonds....DAILY

    Jerome Powell said this at the beginning, the Fed will buy whatever amount they need to .... that's just a masssive massive statement to make.

    It tells us that the Fed is going to inflate bubbles everywhere they can to ensure all levels remain as they were precovid and i can be certain, they will overdo it.

    We could see record high stock prices this year.

    "The Fed has lowered interest rates to nearly zero and snapped up not just Treasurys but also corporate bond exchange-traded funds."

    They have forced rates down 'everywhere' and all it leaves left for cash to go, STOCKS.

    I dont agree with any of what the Fed does, but , understanding what they are doing. helps to make investment decisions.

    I think having BBUS in your portfolio makes a lot of sense, but I would keep it at a 5-10% weighting in your portfolio.

    Other than getting on this gravy train with the FED, you have to buy gold and gold stocks.

    Because I think one day, all the FED is doing will come undone, the US dollar will collapse.
    THey can only print so much money because people are willing to keep buying these dollars, but when the music stops and the big debtor nations out there like China start to realise the US will print and print until the big boys stop buying, the US dollar will start to sink big time and you want to be in GOLD when that happens.

    I see so many experienced, wealthy, smart investors out there on social media saying they cant beleive how far and fast stocks have gone up and they cant possible be buying at these levels etc. etc., but thats what happens when the FED distorts the reality, intervenes, damages and corrupts the system.
 
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