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OVER THE CLIFF????

October 9. 2014

Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

(Update Saturday:  Nothing is going to happen until the banks start reporting mid-week.  The momentum is down and if we do anything, the markets will probably decline further the first part of the week.  This is rough stuff but I am still holding all positions and collecting dividends….they will do anything possible to stabilize the markets going into the November elections.)

(Update Friday:  Maybe the declining gas prices will be stimulative for the economy and stock markets.)

Here is an excellent easy to read article on the state of the economy:

http://seekingalpha.com/article/2553215-why-the-market-topped-out

Last week I said the road was getting bumpy.

How quickly things change.  Suddenly we are hitting huge potholes and if a tire blows we run the danger of careening into the ditch.  We have had no volatility for a year but it is sure hitting now.

Despite low interest rates, stock buybacks and market manipulation they cannot keep the markets going higher.at least for right now  It appears that the huge unemployment rate of 13% (yeah that’s the real number) and the out of control entitlements like disability…. and government debt are finally starting to affect sentiment….along with the horrible economic conditions in Europe.

At this point I suggest you hold all positions and watch how the earnings season unfolds.

In my opinion they will do everything possible to get this market turned around and heading upward at least thru the November elections.  At that point all hell could break loose.

But I don’t have a crystal ball,… well I do but it doesn’t work so well,… and we just have to wait and watch.  Long term I am inclined to just hold on but we shall see.  Also read this interesting article on David Stockmans site:

http://davidstockmanscontracorner.com/collateral-damage-fed-style-yield-hungry-baby-boomers-are-on-a-death-march/

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