Next Year Stocks Could Tank (or Sooner)
The 500 pound gorillas in the room are the impending U.S. 'Fiscal Cliff' and the creditors waiting to downgrade the United States. These gorillas are more powerful than Cornelius, Dr. Zaius and company. Remember what happened last year when the S&P downgraded the U.S.? The market fell off a cliff and crushed our equities and 401(k)'s. Bullshit.
Recall when we had our worst day of in August of 2011 since the fall of Lehman Brothers during the 2008 financial crisis. The S&P downgraded the U.S., we lost our coveted AAA credit rating. It was the first for our country. All three major U.S. stock indexes sank between 5% and 7%, pushing the Dow below 11,000. Stocks tanked around 15% in the two weeks leading up to the downgrade as fear was in the trading air. The threat alone of an impending downgrade wiped out billions from our portfolios.
Fellow Masters if Moody's or S&P throws the U.S. under the bus with a downgrade expect the worse. We really hate reading shit like this and we hope the 2012 election gives the market some reassurance we won't fall of the 'Fiscal Cliff'. Godspeed to us all. If anything, its a moment to pause and look your portfolio and think about adding some stop losses and hedges. Review Gold and Silver are the Perfect Hedge for some trading ideas.
The Epic Chart from Aug 8th 2011:
Best of the Blogs
Scanning and identifying the best blog entries every hour
- The European Debt Bomb Fuse Is Lit! Target2 Imbalances Hit Crisis Levels | ZeroHedge
- Citizen Militia Experiences Explosive Growth Following The Last Election | ZeroHedge
- The Four Horsemen of the Retirement Apocalypse | Financial Sense
- In Latest Intel Mutiny Against Trump, DHS Analysts Say White House Travel Ban Is Wrong | ZeroHedge
- Iran Holds Massive Naval Drill Over 2 Million Sq. Kilometer Area | ZeroHedge
- SAUT: Fade the Fed, Markets Now Dependent on Fiscal Policy | Financial Sense
- America's Border Patrol Budget: Spot The Obama Difference | ZeroHedge
The most relevant financial news and articles from the Internets
- How Americans really feel about their country on 33 key issues, and... | Business Insider
- Here are the best things you can buy at The North Face's winter clearance... | Business Insider
- ACLU: Here's what you should never do if you're stopped by the police | Business Insider
- Here's why weed makes you so paranoid | Business Insider
- Warren Buffett just shared his best investment advice, and said... | Business Insider
- 'How much are you going to buy?... | Business Insider
- Here's why the Academy Awards are nicknamed 'The Oscars' | Business Insider