Good god. Undoubtedly among today's diminishing list of leaders were the Fed's crippled coterie of banks and financials whose heavily subsidized state of masked insolvency faces no serious challenge at the polls: a matter of fact probably in no small part behind the market's rally since June whose positive impact has been particularly favorable to these two groups (Banks +27.5%, Financials +24.4%, S&P 500 +16.4%).
Yet confidence is a fickle thing, isn't that right Bernice. Yes indeed, at least judging by the fading fanfare for equities following the Fed's financial system subsidy press via QE3.
Per this matter of confidence intractably crushed following 2008's collapse of Adam Smith's Leveraged Ponzi Scheme, one is well-advised to note that, the greater portion of losses in percentage terms to such darlings as JPM, WFC, BAC, C, GE and other widely held hostages to a generously greased debt trap occurred during the first two months of 2009 when the myriad of ill-conceived bailouts were well-along in their formulation, rather than in 2008 when the broad market was being trashed. The lesson here is that, desperately trapped lenders of last resort in fact offer no stopgap capable of forever forestalling a great financial reckoning precipitated by too much debt chasing too little real wealth creation. In other words, razor thin confidence simply cannot be papered over. Today's turkey goose only yet again confirms this.
* * * * *© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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