Total Complacency Reigns Among the Masses as Stock Market Sits on Edge of a Cliff - Mike Swanson (6/29/2016)
Yesterday I made a post in which I point said that I thought the stock market was on the edge of a market meltdown and people should look to reduce their risks and do some serious selling.
People in gold and with bets against the market are in a great position now, but the stock market masses tend to only be long stocks and are in big danger.
Read the post I wrote yesterday if you have not already by clicking here.
Yesterday I made note that I have not received a single email from a single person worried about the stock market.
And this is still the case this morning.
I talked with another stock market expert yesterday with a huge following and he told me the same thing.
Today the Investors Intelligence survey came out and showed that the number of bulls dropped 5.9% to 41.6% while the number of bears only went up 0.6% to 23.8%.
How is that possible.
The bulls instead of going into the bear camp went into the correction camp, which rose to 34.6%.
What this means that people just think this is a little blip and practically no one has become bearish on the stock market as a result of last week's drop.
On CNBC complacency reigns.
I have seen talk on there that the United States is insulated from anything that might happen in Europe or England to their financial markets or economy.
This is what Barrons said this weekend too.
If you got a Barnes and Noble near you go there and buy a copy and look at it.
The bull theory - really hope - is that when the stock market fell hard Friday and Monday that it was just a temporary blip and things are now going to up forever.
Here is Jim Cramer last night telling people to just buy "FANG" stocks, because "the high-growth game is one that never ends. These stocks will always bounce back, but the issue is from what level."
Well many Wall Street traders are already calling a bottom and CNBC guests are simply telling people to ignore anything happening and buy. If you turn on CNBC all you will see are people saying buy this or buy that. Here is just one example.
And when it comes to stock market small fries they have no worries.
I know because I receive only emails from bubble bulls telling me it is going up and NOT A SINGLE email from anyone worried.
That is why the VIX remains so low.
If you go on Yahoo Finance this morning the top article is a video of Marc Faber saying buy gold and also saying that the stock market will go up even first with the chaos to come!
And in response to Faber all you see are comments below the article by bubble bulls like this:
May you fall into the depths of the ocean and never heard from again! Who appointed you as our spokesman. We are actually sitting at the top of the world's best economy and the world's best market. If you don't like it move to singapore and join your friend Jimmy. Market was down because of the Breexit but by GOD's Grace it will rebound. The middle class mamas and papas need to build a nest egg for their kids, education and retirement and people like you spread doom and gloom. Have you ever thought about moving to another country and leave the Good OL USA Home of the Brave and Free and Free and the Brave. You are trying to cause commotion so you can cover your short positions and or buy cheaply. Go become a coal miner atleast you will be productive.As for me I am fully invested and continue to invest on a daily, monthly basis for the long haul. levinstein
This is just more bs. The markets will have recovered from last week supposed Brexit disaster by the end of the week. The rich use the media to screw with the small investor.
Fundamentals or global events haven't mattered for over 7 years and won't for the foreseeable future. The Fed has a floor under the market, oh sure you get a few down hiccups but then Wall St takes the money they get from the Fed (reinvestment of maturing securities) and pumps it back up. It won't change anytime soon, the Fed has shown no desire to shrink their balance sheet or raise rates
And this one:
average historical p/e rate is around 17-18. Current p/e 19 (s&p 500). Oh dear god we are overvalued, lol. Come on. Faber should be lucky it's not 25 or 30 considering there is no returns anywhere outside stocks, bonds etc. Maybe things get worse and drop 3 p/e like they did the other day (down 1000 points overall), but i hardly call this the titanic. Could stocks drop more? I guess? So what, hold them, wait for a return.
The reality is most people in the stock market have made no money in a year and a half and they believe that the market will make new highs for them and go up huge so they can start to make money again.
They can make money if they make changes and get into what is working now (gold) and get themselves positioned to buy when things become cheap again.
But they do not want to work or think at all.
They believe in this fantasy that the market will just go up for them forever when what has in fact been happening is that the market has been making a distribution top and is now about to roll over.
If the bulls are right in their predictions then what you have seen in the past two days is a blip and things will go up and make new highs and take off.
However, if the lows of this drop are taken out they will be proven wrong.
I believe the latter is going to happen and I also worry that if it does happen so many bubble bulls will wipe themselves out in what will turn into a huge market meltdown.
And no one is worried and no one is cared. They just watch CNBC and get told to buy.
People desperately want to believe the S&P 500 1990 level is the bottom and will hold, because everyone knows if it doesn't it will be a disaster.
I talked about the two reasons I think a big drop is going to be the end result of this yesterday here.
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