The greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants.
So, if we’re getting some late stage run for glory which sends us ever higher, I don’t buy for a moment that it’s the general population finally diving in. I could however see it being the bankers printing even more than they acknowledge they are.
There are all sorts of options plays you can have fun with. I suggest that 90% of the people should stay with the absolute basics of trading options, and that simply means buying call options if you think a stock is going to rise. It means buying a put option if you think the stock is going to fall.
... investors who have been riding the waves of BOJ-fueled euphoria in the rising Japanese stock market are now freaking out that the central banksters are getting ready to take the "punch bowl" of central bank funny money.
Logic says this had to end. History says it’s got to end. And yet they keep finding rabbits. I’ll be the first to admit, that I NEVER thought they could kick the cans down the road as far as they have. Yet, here we are.
Each day that goes by brings us one day closer to the “end game.” One would have to be genuinely silly to try and put a date on that event, but you all know it’s coming. The US dollar’s days as the world reserve is going to come to an end.
...we are living in a weird inverse economic reality where cause does not follow effect and nothing does make rational sense. It's a magical world created by the wizards of Wall Street, and, to the extent that we participate in their system by using their monopoly money and investing in their rigged markets, they will continue bending those markets to their will...
Fair value is not a fail safe, doesn’t always tell you where things are going to open, and becomes useless just minutes into the day.
The old adage on Wall Street is that the market climbs the steps going up, but takes the elevator down. It certainly does.
Every time this market has gone a bit sour over the past 6 years, they’ve found a way to goose it higher.
But now it’s stirring again. While it is still trapped below 1300, what we do see is the gold miners have really perked up.
One important lesson investors can learn from the market action over the past decade is that the government plays a very important role.
In a choppy, overdone, fake market, I find that buying bottom feeders who are selling calls is about the safest thing we can do.
Over the next two – three weeks we’re going to hear from thousands of companies. If you’re holding individual stocks, it is worth your while to look up their earnings releases and maybe selling out a day ahead of their reports.