Loading ...For You : Sir Plunger
I strangely came upon this card in a book set to me from an annonymous reader in Florida. about the great depression. The Book arrived in the mail and was surprisingly quite worn, obviously well read. The sender said she bought it at a second hand book shop .
I have had it for maybe 10 years….It’s a prized possession….
With reference to Your Great Post Tonite at Rambus
What a week for the DOW up 2.9% or 673 points in one week. Rambus’ charts have shown the breakout, followed by backtest and now no resistance is in sight. It has now built up such a full head of steam that anyone trying to stand in front of it is getting mowed down. It is a bit scary actually, because we know that the big money is made and lost at the turn of the cycle and most of the public gets it wrong at both ends and the public is now buying. So what should an investor do?
Yes, I do feel like Roger Babson who correctly identified the top of the market in September 1929, after of course identifying it in both 1927 and 1928. But he understood what was going on, whereas the public had no clue, here is what he said at the top:
“I repeat what I said at this time last year and the year before, that sooner or later a crash is coming which will take down the leading stocks and cause a decline of 60 to 80 points in the Dow Jones. Fair weather cannot always continue. The Economic Cycle is in progress today as it was in the past. The Federal Reserve System has put the banks in a strong position, but it has not changed human nature. More people are borrowing and speculating today than ever in our history. Sooner or later a crash is coming and it may be terrific. Wise are those investors who now get out of debt and reef their sails. This does not mean selling all you have, but it does mean paying up your loans and avoiding margin speculation. Sooner or later the stock market boom will collapse like the Florida boom. Someday the time is coming when the market will begin to slide or , sellers will exceed buyers, and paper profits will begin to disappear, then there will immediately be a stampede to save what paper profits then exist.”
Roger Babson September 5, 1929.
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This could be your Subtitle
Cheers
S Augustus December 3 2017
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This is the fourth bubble I have participated in. The first was the gold/silver/oil bubble of the late 70’s and the three we have had since the late 90’s. I can’t believe we are going to do this again. No the FED will not learn since it’s all they know how to do. Print until it gets ridiculous, then raise rates until it blows up. Nothing new under the sun… In England in the 11th century people got sick of the inflation and money printing caused by the bankers so they sequestered the central committee of bankers and cut off their right hand and then their private parts. The point being they will keep doing it until someone stops them. At least the English figured this out”
Plunger Dec 3 2017
Rinse and repeat. You can sense what’s coming next…
Sorry have I missed something?
The mid cycle (credit cycle) slow-down is not until mid-late 2019 so we still have lots of time for considerable expansion in the stock market, after which there will be exponential increases through to 2026
Folks that stay on the outer waiting for a significant correction will pay a heavy price, for their complete lack of understanding of the 18-22 year credit cycle!
I welcome Plunger over to the inflationary side. Big deflation will come, but not for a long time.
https://goldtadise.com/?p=407586