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Royal Bank of Scotland to investors: 'Sell everything'

Discussion in 'Sports and News' started by Dick Whitman, Jan 12, 2016.

  1. BTExpress

    BTExpress Well-Known Member

    I'm about 75 percent cash in the 401(k) but still invest 15 percent of my income in a 401(k) index fund. Dollar-cost averaging will mitigate almost any bear market, as will having only about 25 percent of the fund exposed to it. Maybe too conservative. But I'm old and careful.
  2. Dick Whitman

    Dick Whitman Well-Known Member

    I do all my investing in FanDuel.
  3. Michael_ Gee

    Michael_ Gee Well-Known Member

    As the head of the central bank for a currency that should never have been created, and the only official with real power within a political entity (the EU) very close to dissolution, Draghi has much more on his plate than the direction of financial markets. Compared to his, Chairman of the Fed's job is a breeze.
  4. Brian

    Brian Well-Known Member

    I only felt comfortable investing in things other than conservative index funds in 2008. Everything was so cheap it was hard to mess it up. If it got any worse, we were headed for a depression and our money was going to be worthless anyways. It was a no-lose and (hopefully) once-in-a-lifetime situation.
  5. swingline

    swingline Well-Known Member

    Scratchers, man. It's the only way to go.
  6. Twirling Time

    Twirling Time Well-Known Member

    Oil is spiking on news that natural gas inventories fell. It's bringing the Dow with it, up almost 300. But they just came out and said crude inventories rose, and that should quash the rally.
  7. swingline

    swingline Well-Known Member

    I'm putting away 16 percent of my salary toward retirement. My employer gives 3 percent, then matches another 2 percent, so I kick in 6 percent (which increases 1 percent every year on my hire date) with another 5 percent with an outside firm.

    I'm going to have to work until at least 65 and maybe 67 and hope like hell Social Security is still around when I'm done to pick up the considerable slack.

    If I get a job I've applied for an interviewed once (with a second round of interviews scheduled), I'll have at least $20,000 more a year to work with. That would help.
    Last edited: Jan 21, 2016
  8. The Big Ragu

    The Big Ragu Moderator Staff Member

    If this doesn't sum up the world the Federal Reserve has created for us, I don't know what does.

    Schlumberger announced earnings after the bell. Earnings declined by 17 percent. No surprise there. They laid off 10,000 people in the 4th quarter (but fear not, the BLS says our economy is at full employment!).

    And. ... The company will be buying back $10 billion worth of stock and paying a cash dividend of 50 cents per share.

    This is an extreme example of the nonsense that the stock market ran up on for several years -- and what I tried to point out in posts many times. Stocks are not trading on earnings or trading fundamentally based on anything productive that drives stock prices in a FREE market. If they were, our stock market would be trading much lower than it is. It has been companies borrowing money cheaply courtesy of the Federal Reserve -- and its keeping its thumb on the scales of finance -- and juicing their stock prices with buybacks. Shareholders love the financial engineering. Apparently, it is going to go on right till the very end, when a credit cycle takes full hold, and we get forced deleveraging, with some over indebted area that they cluelessly put into a bubble being the catalyst for the next financial crisis.
  9. hondo

    hondo Well-Known Member

    Why aren't you the Secretary of Treasury?
  10. BTExpress

    BTExpress Well-Known Member

    My company has to keep buying back stock to keep the price above $1 so it won't be delisted from the NYSE.

    Can someone explain in less than 1,000 words (sorry, Ragu) the downside to being delisted as opposed to throwing away money artificially pumping up a stock price that the market will just beat back down under $1 anyway?
  11. old_tony

    old_tony Well-Known Member

    I, too, really like and respect Ragu's thoughts. He knows his stuff. What he couldn't count on was the currency manipulations of the last seven years that have falsely inflated another false bubble.
  12. BTExpress

    BTExpress Well-Known Member

    As of 11 a.m. Jan. 29, the Dow is up 200 points. Here is Reuters' explanation:

    "Wall Street was higher on Friday after weak GDP data raised expectations that the U.S. Federal Reserve would go slow on future interest rate hikes."

    Of course, had the DJIA been down 200 points, they would have simply said it was because of "weak GDP data."

    Either way, they have an explanation. One that's full of crap.
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