Gold 401K

It’s White Knuckle Time!

In case you’re not a close follower of the stock market, and yet much of your 401k is heavily invested in such, the ride is going to get even BUMPIER than it has been these past four days! Starting with last Thursday, look at the past four trading days and see what I’m saying. 

Up 122, down 159, up, 143, and today down 225!

Of course you might be saying, hey, that only a loss of 120 points for four days. Right! And that’s just the “warm up”. The “distribution days” are now more than numerous which is another way of saying that the institutional investors are SELLING into this market.

Could Richard Russell and a host of others be right in saying that we’re been in a “bear market rally” since March 9, 2009? We won’t have to wait much longer to find that out. And have you been checking out the S&P P/E?

The price/earnings ratio for the S&P is above 20. Historically, when the P/E for the S&P is above 20, stocks, in general, are expensive and end up providing buyer with losses. The last I checked, the HERD (of bulls) are running for the cliff with the CALL to PUT ratio being more than 2-1.

There are two ancient expressions that might be worth mentioning here at this point.

>Sell in May and go away
>The TOP has been in for some time now and the bigger the TOP, the bigger the DROP!

What’s a person to do? Who knows except that PAPER never has been a good asset to keep one at the tables.  If you stay at the tables long enough (can you say Vegas?), you’ll eventually run out of money. I might mention though this yellow metal called GOLD! It got nicked a little today; however, it’s been up 30% over the last twelve months- up $270 an ounce.

Hmm. 

Let’s see now. A solid, physical investment that’s headed to $2,500 to $5,000 or the wild roller coaster ride of the current stock market? I guess it all depends upon how much of a gambler you are and how much a thrill you get out of a “white knuckle” ride.

About the Author

As a spiritual-futurist, I have a BA degree majoring in history. One cannot know the future without knowing the past which holds clues to what is on the horizon. The world is in such a rapid expansion of knowledge that we are close to entering a tipping point that will forever change earth as we know it.

Immoral Resource Re-Distribution