Stock Market Maybe Being Propped Up By Fed

Discussion in 'UPS Retirement Topics' started by anonymous6, Apr 16, 2013.

  1. anonymous6

    anonymous6 Guest

    just my opinion but I don't think there is a valid reason why the Dow is bordering on 15,000 going by fundementals.
    i am a little nervous that we are in another artificial bubble.

    historically, for one thing, the market usually goes down after an election year. granted, some economic indicators are up but with gold prices all over the place and the tremendous uncertainty in Europe , Middle East, and Korea, why would the stock market be holding steady or rising?

    just wondering. anyone else thinking this or am I just being paranoid. ( was burned big time in 2008, as most here )
     
  2. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Hope you are wrong.
    When the market tanked yesterday after the Boston bombing, I put all of my 401k back into the market.
    I had 50% sitting in a cash equivalent (STIF) since earlier in the year.
    I had planned to look at it in May but the "emotional" drop yesterday presented an irresistible opportunity.
     
  3. oldupsman

    oldupsman Well-Known Member

    Depends on your personal financial situation. I'm totally debt free and retired and living off my pension. I rode the whole
    thing out last time. Got all my money back and more. I really don't need to dip into my IRA accounts. If you feel you're going to need some cash
    sometime soon now is a good time to sell something. I just sold almost the last of my UPS stock. Seemed like a good time to cash in.
    ​But there is so many outside factors controlling the market anymore who knows.
     
  4. Benben

    Benben Active Member

    PE is still low, historically speaking. In 2012 everyone and their dog held everything back in savings and cash just waiting for the other shoe to drop which never did. Corperations had more cash on the books than any other time in history and the average American had the lowest debt in the past 2 decades. The re-election made everyone think, "ok, we have another 4 years, time to start making some money." QE 1,2,3,+ have been all about getting the flow of money going again.

    With that being said......13% in 1 quarter is WAY OVER THE TOP. Pull back is in process. How long the pull back lasts I haven't a clue. Gold goes up because so many flee to it as a safe harbor when things are scary. Right now things are not scary, therefore nobody is buying gold and the price crashes. I do know the Fed will keep interest rates low for the rest of the year and into 2014. Dividends will safeguard/hedge your possitions. Don't try to make a fast buck and 2013 will be an excellent year! Risk vs. Reward.... never lose sight of the prize. 2013 will turn out to be a GREAT YEAR!
     
  5. bmwmc

    bmwmc Active Member

    Hopium.

    [video=youtube;fkRyG4SQfn4]https://www.youtube.com/watch?v=fkRyG4SQfn4[/video]

    ​A artificial time for the markets.
     
  6. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Historically speaking with P/E ratios the DOW could run up to around 17k before it gets overpriced.
     
  7. moreluck

    moreluck golden ticket member

    UPS reports on Thursday (25th), I think.
     
  8. anonymous6

    anonymous6 Guest

    i use DCA ( dollar cost averageing in all my accounts and everything is on autopilot. it's a catch 22 sort of. if you don't invest you have to pay huge taxes and lose that money forever. the market could tank and you lose anyway unless you have the time for it to recover.

    the recovery time this time was only 5 years but there is no guarantee that there will be a recovery next time.
     
  9. brownmonster

    brownmonster Man of Great Wisdom

    The market dropping a little over a percent is not really tanking. Gold and Apple on the other hand.....