Every time I talk to a hands off investor who has good savings, I hear commentary that the market will continue higher.
Until my post in 2010, I believed that laws and the 'system' would revert to the mean. That somehow fundamentals would curb asset inflation eventually.
Since my post in 2010 titled View Change, I am open to the idea that this here, right now, is a market bottom never to be seen again, S&P 500 will hit 4000, then 20,000, on the way to a million.
All that has to happen is stop enforcing financial laws, give away money no strings attached, and influence the market through manipulation. As I said in 2010, if the S&P 500 hits 2000, USA citizens will hit a new low for USA living standards. With 41% of working age Americans not working, 15% of Americans living in poverty, inflation for 2014 target double the central bank target, forecast at 4.1%, As a comparison how US citizens are faring, in 12 months 22 billion dollars in homes bought by Chinese citizens in CASH in just California!
We have seen this to varying degrees since 2008, starting off with suspending honest accounting in place since the great depression back in 2009. Without honest accounting, I am still unsure how any company under fictitious accounting can ever be severely punished by the market.
Please keep in mind, if the market doubles from here in the next year or two, all is not well.
We will see an acceleration of side effects, consequences, there will be ripples into bond markets, commodities, currency destabilization with smaller countries, and worst of all big money starting to lose fear.
Losing fear of consequences of actions, companies no longer required to work as hard to get that carrot. Recklessness, corruption, and acceleration of lawlessness. Money is a powerful motivator for change, to drive people to be productive, but it can drive down real work if too easy as it would become if the market drives higher and faster.
I honestly have no clue what is next market wise, today maybe the best time ever to buy into the market, I really mean that. Or we are about to get a long over-due correction back to reality. When the orange line crosses below the blue line, you must listen and get out of the market, for we could have one hell of a correction.
For now, party on dude, S&P 500 to 4,000 and beyond!
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