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Why The U.S. Stock Market is NOT a Bubble - Armstrong

Goldhedge

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Why The U.S. Stock Market is NOT a Bubble
Posted on January 15, 2016 by Martin Armstrong

A real bubble is when you suck in everyone who has no business investing in the stock market. We are nowhere near a bubble, despite the current correction process. There is no risk of an 80-90% decline as was the case following 1929. Many losers obviously didn’t come forward publicly during the Great Depression, but one such loser did. She was a girl of 22 named Margaret Shotwell. She told the press that she had lost more than $1 million and even named the stocks she had owned. The list was Montgomery Ward, Paramount, Cities Service and General Motors—all blue chip companies, no doubt.

Nevertheless, when Margaret was only 12 years of age, her father had brought home a friend to listen to her play the piano. That friend was John Neal, who upon his death left her $l million in stock to Reynolds Tobacco. Shotwell diversified her fortune into other companies on margin. “I was just one of the suckers,” she said during an interview with The Tuscaloosa News. “I lost everything I had in the world. That was $900,000 and I owe $50,000 to my broker besides. But it isn’t smart to be rich anymore. I’ve got lots of company now.”

Above is a video she made explaining her loss from the Great Depression.

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http://www.armstrongeconomics.com/archives/41898
 

the_shootist

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The markets took a bumpy ride down this morning yet PMs are giving up their overnight gains....should be an interesting afternoon. I predict the damage will be somewhat mitigated by days end as more money gets shifted around (from PMs to stocks) to plug the holes in the dike. Highly entertaining!
 

gringott

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Dang that avatar is very distracting.
 

the_shootist

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Cigarlover

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"A real bubble is when you suck in everyone who has no business investing in the stock market. We are nowhere near a bubble, despite the current correction process"


How many trillions are locked up in 401k's thats are all invested in the stock market which has helped fuel the bubble? In 1990 the dow was about 1000-1500 iirc. So it took 100 years to get to 1000 and only 26 more to get to 18000
 
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earplugs

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Well what do you believw? Do you believe the Fed will step in or dontcha? If the Fed doesn't step in, the market will sink. If the Fed does step in, the markets will rise. Imho, they will let the markets sink a bit before the step. Why blow a wad of trillions and get a 10% gain when they can blow the same amt at dow 8 and get 50%-80% gain?

Technically the dow is a head and shoulders. Really bearish. PE is are still at all time highs. Global markets are correcting big. War is festering. Doesn't seem to be a good time for usa markets to go up, especially when such bellwether companies like apple, wmt are cutting back.

And to go all out looney, I will mention some bible propehcy, the part about the iron legs. From what I've read, sounds like america..we are now entering the end of that Era and entering the feet.
 

Cigarlover

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In a free market economy there shouldnt be a fed or Gov stepping in for anything. As we can see worldwide, gov and bankers just create debt and war.
 

earplugs

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In a free market economy there shouldnt be a fed or Gov stepping in for anything. As we can see worldwide, gov and bankers just create debt and war.

Free or equal? In a free market, big and small can do anything they wajt, even rig it so as not to be free. All the biggest companies, including wmt and tesla and msft have their finger in the gubmint pie. In fact, getting gubmint help is where most companies go because it's the easiest way to get a lot of money.
 

FunnyMoney

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A derivative is rich investors placing side bets on things like whether your house is going to burn down or not. Not just their house, your house. What could go wrong?

The cat was let out of the bag long ago, over a hundred years ago. They're no longer in the realm of too big to fail, they're in the realm of too big for our own good.

... a greater curse.... - see avatar.
 

SilverCity

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Mr. Armstrong's view has changed since he was released early from his prison term. Wonder what kind of deal he cut?

John B Wells recently asked him a direct question about the outlook for gold and silver and he gave a totally evasive non-answer.

SC
 
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anywoundedduck

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Mr. Armstrong's view has changed since he was released early from his prison term. Wonder what kind of deal he cut?
Something to do with a golden fiddle.