Weekly Wrap

Man, I don't know what to say? Every fundamental and logical reason points to a stock market that should be tumbling, but instead, the S&P 500 Index closed above 1700 at the end of this week. It's just way too crazy.

Our Government is totally dysfunctional, the economy is stagnant, the job market is disintegrating, corporations are increasing their stranglehold on the poor and middle class, judges and politicians are slowly marginalizing our civil rights, and we're still continuing to lose our homes, our pensions, and our safety nets.

And even the cash-rich corporations sitting in the driver's seat are reporting disappointing earnings this quarter. There's absolutely no good reason why the stock markets should be at these levels.

Yet, there are crazy optimistic investors who continue to see the glass as half-full, and continue to tolerate the criminals in their efforts to destroy our way of life. Perhaps it's true that the wealthiest 10% of Americans own >90% of the stock market. Who else would take on such risk? If you can figure it out, more power to you.

Regardless, those who've continued to invest in low-cost, diversified, stock market index funds, have been in the driver's seat for the past five years, and have seen their portfolios gain tremendously.

At least the stock market appreciates my efforts at promoting a Boglehead approach to investing.

Happy Halloween | Say Your Prayers

I spent so much time | Believing all the lies | To keep the dream alive
Now it makes me sad | It makes me mad at truth | For loving what was you

Money For Nothing | Inside The Federal Reserve

As the global financial system continues to falter, the Federal Reserve finds itself at a crossroads. The choices it makes will greatly influence the kind of world our children and grandchildren inherit. How can the Federal Reserve steer our nation toward a more sustainable path?

How can the American people – who the Fed was created to serve – influence an institution whose inner workings they may not understand?

Money for Nothing: Inside the Federal Reserve is an independent, non-partisan documentary film that examines America's central bank from the inside out - in a critical yet balanced way.


"Money For Nothing" Official Theatrical Trailer from Liberty Street Films on Vimeo.

Weekly Wrap | Where I Stand

It's been a few months since I've posted anything of meaning (if ever) here, so I thought I would check in, rehash my position, and document my performance for the record.

Again, I'm still fully invested in cash since last September. Unfortunately, I still have little faith in our criminalized financial system (and also our economic and political systems) and am fully expecting unbridled greed and corruption to lead to another Great Recession-like crash, or even worse.

Although I still monitor the markets and our economy daily, I haven't invested in nor traded individual stocks since I've moved into cash. As a whole, I view the markets as not only being corrupted, but being way overvalued to invest in, and much too risky to "play around" in even if they weren't.

IMO, the only reason stocks markets have continued their ascent is because of Fed intervention and manipulation, and because most of the money being actively invested/traded is held by the 10% of population located at the top of the economic pyramid whom invest with hedge funds, HFTs, and other investment managers whose jobs depend upon generating alpha. I call them "the herd".

Economically, the continuing spin coming out of both Washington and the financial sector is one of an improving economy, but I see just the opposite.

Corporations are still producing relatively record level profits, but it's mainly occurring at the expense of workers and consumers. That's unsustainable, as the gap (and discontent) between the extremely rich and the rest of us widens daily. Any improvement in consumer spending comes at the expense of increased borrowing/debt.

The unemployment situation isn't improving either. The current administration's spin is to manipulate the data so that it "seems" like it's the job market is improving (e.g. including/excluding certain employment classifications), but not everyone is being fooled. Part-time and temp work is increasing while full time employment, wages, and benefits are decreasing. This spin, too, is unsustainable.

Again, I see nothing on the horizon to reverse both the economic and unemployment trends.

The Obama administration is leaving it up to the corporations to reverse unemployment, but yet they continue to enable corporate welfare and the shifting of jobs overseas (e.g. TPP).

And now that the administration has recently sold out to "compromising" with the GOP, they're also enabling efforts to widen inequality and oppress average Americans' rights (e.g. cuts in social welfare programs, unconstitutional surveillance, and an increasing police state).

These types of oppression work against increasing average Americans' faith in the system.

Yet, in the face of everything that I've mentioned, and after I moved my entire portfolio out of the stock markets, they've still managed to gain around 20% since the beginning of this year.

The S&P 500 Index closed out this week at 1692, remaining near record-level highs.

Even after everything I've said and done, at this point, it's all moot. I'm being left behind. My ability to mystically predict market movements, at least short-term market movements, has failed me - for now.

Dr. Doom on Asian Markets

Someone is manipulating the strings again, and it's causing the herd to stampede from the Japanese stock markets. So, who's the first person the media interviews when things quickly take a turn for the worse? That's right, Dr. Doom. Here's a breaking news video of his initial reaction to that stampede.