No. Schiff drinks a little too much haterade before he talks about the market. Always thinks the sky is falling.
Think about this as the Crisis Du Jour (Crisis of The Day). If you look at all of the times the public has panicked over any kind of crisis and the market has tanked, but then fully recovered it’s almost laughable. The media hypes everything for better ratings. Academic research (which doesn’t benefit by how good or bad the market does) shows that the market always goes back up over time.
This is just another bump in the road for the markets. In a couple of months it’ll be forgotten just like Meredith Whitney’s Muni Bond crisis back in December is now forgotten.
Never invest based on your emotions, always think long-term. Besides, we already have a good jobs report this morning and the market futures are up.
You guys really think it’s all gravy with S&P dropping the US rating to AA+ from AAA?
Don’t get me wrong…I find it ironic they let the housing bubble take place and it was clear sailing till we were far into the bubble pop. I don’t value their “opinion” or rating. Just sayin…most do and this may lead to some serious panic.
This ties into the 2 things I’ve suggested over the past few weeks. That I thought they would drop and now we’ll probably see interest rates rise. I imagine they did this so the Fed takes no heat on doing what NEEDS to be done…raise the rates. Also I believe the panic we will see could add to the deflation I suggested just a day or 2 ago. I knew the bonds and USD looked strong…and it was suspect that commods and stocks dropped sharply at the same time. We’ll see if it pans out but I think it was a rotation of $$$. Stay tuned! 
LOL this country’s in for a ride, it aint over by a long shot, I didn’t vote so I can’t bitch, but congrats on electing your great leadership
It’s not Obama. It wasn’t Bush. It’s not the repub or dems fault. It’s the way we refuse to use a flat tax system and how we live beyond our means as AMERICANS! The people AND the go-mint are to blame for thinking they never need to run a surplus. I don’t vote because they are all fucking crooks we are given access to. I refuse to vote the lesser of the crooks in. I DO believe I can bitch despite not voting. I don’t vote with intent, not because I’m lazy or think it’s not my problem to vote. There’s a HUGE difference!
I’m liquid…BRING THE PAIN! We need deflation if we’re ever going to get American jobs back and become a fundamentally sound nation again. I usually end that with IMO…I am no longer going to do so because it is fact.
http://www.tradersbase.com/2011/08/07/market-gearing-to-crash-tomorrow-your-trading-plan/
New vid/post up from Chris. Really good info, albeit with some ballsy predictions.
Premiums are just so high we advise against buying option contracts. Sellers will rake in the $$$ on the VIX blowing up. 
GREAT time for covered calls in many cases.
How are yall preparing for what may take place? Any thoughts on what may happen next?
my 401k f-in tanked I’m down 4% 
I know I’m in it for the long haul but still makes me upset. I was going to move some things around but didn’t…should have. I’m getting my liquid funds lower and buying some things I want.
If it goes lower it will break into flash crash support. If we don’t get a sharp bounce I’d move to stable value or something bond based quickly.
Hell…I’d hope for a bounce and then still go to bonds. Money has NOT rolled out of bonds into equities as should happen in “recovery” mode. I was posting this early July in fact, given the stagnation of price movement in the indices. Sadly…I didn’t get bear ETF’s at the top. Now I’m waiting to see if support breaks and if yes I’ll be doing bearish ETF’s in my IRA.
Im 100% in 1993 RX7 lol
LOL. I bet that sounds BEARISH! 
hahaha
Oh and I forgot I have a good amount in beer. I find it to be a highly desirable commodity.
But for real I am and have been sitting in cash for some time. i do not trust the market util our debt is actually on a path to be dealt with. By that I mean a point that we are making more then spending again someday like every other american has to live…yet our nation thinks they con operate forever spending more then they make. So needless to say I will be in cash for a longgggg time.
I’ll be going bearish ETF’s with a portion of my cash on a bounce to resistance or a break below the support we currently are sitting on. You’ll probably be in cash for quite some time like you said.
I REALLY want to see how the monthly candle closes but dunno if waiting that long will prove wise given the volatility spike. 8/
Why you no can haz bearish?
I would, but I just don’t have the time/desire to make the trades anymore and I ALWAYS have gotten burned playing the bear in the past. It is the play I would if anything but id be quick. I made a BOSS amount of money on dead cat bounces(using my govt funded machine gun logic) while shit was hitting the fan and on bull runs…about 1 Turbo FDs worth. But I just don’t have it in me anymore to keep up with it. I used to be more motivated to get money I guess lol. Boy that is a sad thing to admit as young as I am.
http://www.tradersbase.com/2011/08/0...et-telling-us/
I finally made time to blog. I think yall will like what I have to say, well unless you’re a bull.
Also a updated video from Chris…his short picks from last night are making us $$$! 8)
my dads lost like 150k in the last week
great time to start throwing money into the 401k / IRA if looking long term?
IMO not yet. Check my blog post when you have a minute. If we see momentum cease…then it’s worth a base entry. I am steering clear of longs at this point…just too many indicators pointing to a probable double dip/deflation.
Of course my analysis is only valid till we get QE3 and they further kill our spending power and hand over our money to poorly managed businesses.
dow dropped 600pts today
you know its bad when you get a server error trying to log into your 401k online
Don’t sell the things in your 401k at a loss. Raise your contributions and buy more while it’s on sale if you can. Did that through the last “dip” to effectively double my 401k balance. At the very least keep your contributions the same (dollar cost averaging ftw).
People say “I know i’m supposed to be thinking long term, but…” But nothing. Think long term, end of story.
---------- Post added at 04:29 PM ---------- Previous post was at 04:23 PM ----------
IMHO, yes. I was boycotting the 401k at my new gig because I think their fund choices suck (loads far higher than they need to be). But with everything going on sale, I’m in for 20% pre-tax. Won’t miss it any time soon.
Definitely factor in what the experienced traders here are saying, but my perspective is that if you do scheduled, fixed-amount buys into a 401k plan or IRA, the effect of dollar cost averaging is likely to kick ass for you. Dollar cost averaging - Wikipedia
I agree with almost all of what you said. Especially siting it out if the funds suck and raising contributions when the market is beat to shit.
I don’t like that last part though…scheduled fixed amount buys. That’s a recipe for disaster. IMO it’s CRUCIAL to up the contribution after a market ass whoopin. It betters your cost basis and ups the odds of a profitable outcome. That’s what you said at first…the last line just kind of contradicted that.