Revised December 2, 2013
The marvelous thing about the stock market is you can find someone, an expert, who will say the words you want to hear. Thus if you believe the stock market will continue to go up there are plenty of stock market advisers who will tell you that the end of the rise is no where in sight. However, if you are skeptical about the continued rise in stock market shares then you will listen to those who say now is the time to sell.
After all, buy low sell high demands you get out now! Frankly it looks like a bubble to me.
Economist Caution: Prepare For ‘Massive Wealth Destruction’
Starts with these two paragraphs.
Take immediate steps to protect your wealth . . . NOW!
That’s exactly what many well-respected economists, billionaires, and noted authors are telling you to do — experts such as Marc Faber, Peter Schiff, Donald Trump, and Robert Wiedemer. According to them, we are on the verge of another recession, and this one will be far worse than what we experienced during the last financial crisis.
Most of the above group are known bear market advisers. How about Oaktree Chairman, Howard Marks? He has a bundle of funds to manage. He posted this article on Morningstar. Not a bear market web site.
. . . there’s a race
to the bottom going on, reflecting a widespread reduction in the level of
prudence on the part of investors and capital providers. No one can prove at
this point that those who participate will be punished, or that their long-run
performance won’t exceed that of the naysayers. But that is the usual
pattern.
I know, you want to squeeze every last drop out of the unbelievable rise in the stock market. After all the S&P 500 is up over 25% this year alone. The problem is that when it drops, the falls seem to come fast and furious. Just remember, mutual fund trades occur at the end of the day. In just one day the market lost 777.68 or 6.98%. That was not in 1929. That was September 29, 2008.
Oh well that was 2008 you are saying. That was the start of the Great Recession. What about the 15% drop in August 2011? That occurred between August 4 and August 10.
Don’t be greedy!
Coast Contact 
Very good points. I have never dabbled in the stock market, not much of a gambler. The reality is though that we are so very much in a time like what led up to 1929 and the great depression. Not sure if we should be frightened or just resigned. Seems like people never learn from history and it just keeps right on repeating itself.
There is a theory that our stock markets are “efficient,” meaning that everyone has access to the same information at the same time. Of course, this is not true, but in a broad sense, the market taken as a whole expects to know about events and news in time to absorb them.
I predict a stock market rise for Tuesday, although investors should really just wake up and smell the bears. Really everyone, how long can this stock market rally go on?