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
- After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity | ZeroHedge
- The Return Of Crisis | ZeroHedge
- Credit Markets Continue to Show Signs of Stress - Caution Warranted | Financial Sense
- Gunshots Heard In Hong Kong As Police Battle Angry Crowds On First Day Of Chinese New Year | ZeroHedge
- Former Fed President Demands Negative Rates To Combat "Terrible" Fiscal Policy | ZeroHedge
- Capital Flight Intensifies in Italy and Spain | Financial Sense
- WTI Plunges Back Below $30 After Goldman "Teens" & IEA Excess-Supply Warning | ZeroHedge
The most relevant financial news and articles from the Internets
- A CPA says there's only one way to cut down your taxes | Business Insider
- The truth about the stock market in 16 simple charts | Business Insider
- 23 signs you're burnt out at work | Business Insider
- 540 robots dancing in sync looks just as insane as you'd think | Business Insider
- Scientists have discovered a possible cure for jet lag | Business Insider
- Awe-inspiring quotes from Carl Sagan reveal how... | Business Insider
- The stocks Wall Street analysts love most are getting crushed this year | Business Insider