Why you're Portfolio just tanked again.

I just have to chuckle (or cry) when I see these things. I am looking at the top two Business News stories from the AP Headlines on My Yahoo. One shows how Jobless claims have plunged and retail sales improve. Both good. However, I Then look at the down markets at the close, and notice the headline, "Traders Cash in winnings after week's huge gains". Yes. Traders. Who would that be? Me and my E Trade account? You're Ameritrade Account? Probably not. It's more likely a huge Money Manager or Investment Banking Firm, or maybe some Hedge funds cashing out a weeks worth of party money for their wealthy clients. Because of the massive sell off, the markets go down. This effects your portfolio almost regardless of what you are invested in. Will it go back up? Maybe. But you have to wait another day and endure another day or more of hoping and praying you will ever retire because of the actions of the Wall Street elite.

Now that it's down, with some decent Stress Test info (and they can twist it into good or bad however they want it), these same folks will now Buy these discounted stocks (from their own actions). When they do, their portfolio, and to some extent yours, will go up a little bit. But because they have Billions invested, and you Thousands, their's will skyrocket in value. They've just created their own wealth.

Are there REAL reasons the market goes up or down. Sure. But ever day I watch and listen as these kind of headlines roll across, and people that know more about the industry than I shake their head wondering why the Market is doing what it's doing based on the news. Sometimes it doesn't matter. That is a problem. That's where it's gambling. The FREE Market is a lot more free to those that can afford it.

Just my take.

Stock Trading is stock trading. If you want security, buy Savings Bonds.

The market dropped 102 points. Its lower than it was yesterday, but higher than it was the day before and the day before that and so on for more than three months back in time.

A Ponzi scheme. And those at the top always win. Those at the bottom nearly always lose.

but up for the year.

more and more the misuse of the words "you're" (which is a contraction, meaning "you are"), and the word "your" (which is possessive) ......

Sorry! No offense intended!

Good post, however.





:toast:

N/T

it does what it does, and IMO there is almost never the correlation they are trying to convince us to accept.

So many times they will argue that News Story A is the cause of the market reaction, but when you examine which stocks were actually down (or up) that day, they inevitably belong to a sector that has nothing to do with Story A.

Good post!

Down 102 yesterday. Up 164 today.

Or maybe it didn't "tank" yesterday. The one thing I'm confident about is that it will fluctuate. Doesn't mean its tanking. Or that its surging. It does mean that for the past few weeks, its been rallying, but that the strength of the rally is still in doubt.