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
- Runner Screen | iBankCoin.com
- Conference Board Leading Economic Index Increased in March | Financial Sense
- Who Made More, Facebook VCs or Its Founder: The True Cost of the VC Preferred Stock Control Premium | ZeroHedge
- Europe April Manufacturing Summary: France's Loss Is Germany's Gain | ZeroHedge
- Facebook Beats But CFO Leaving | ZeroHedge
- Ukraine Gives Russia 48-Hr Ultimatum Or "We Will Fight" | ZeroHedge
- Market Beginning to Shift Inflation Expectations | Financial Sense
The most relevant financial news and articles from the Internets
- The Ex-Boyfriend Of Billionaire Investor Vinod... | Business Insider
- 9 Animated Maps That Will Change The Way You See The World | Business Insider
- These Guys Started The Biggest Single-Day Startup Event In The World — And It's Happening Right Now In... | Business Insider
- Ex-'Daily Show' Writer Behind @TheTweetOfGod... | Business Insider
- The Next Time You Hail A Cab You Might Wind Up With Free Financial Advice | Business Insider
- ... | StreetInsider.com
- How ‘Indiana Jones And The Temple Of Doom’ Created The PG-13... | Business Insider