Are the top elite banks (like G.S, J.P. Morgan etc) in the world are greedy and manipulative?
I bet they are. I am not going into any details here. The government has the perception that all these big banks are ‘too big to fail’ and if they fail, then the nation’s economy will collapse and so the government. So, the big banks have a special privilege to suck money out of all ordinary folks like you and me. Go and check, how much small fees you have to pay annually to the banks...mind you, all added up. Not only that, they also make big fat profits out of manipulating the market.
Remember why gold price plunged $250+ to 1321 within a few days in Mid April. One of the key reasons as mentioned before is because influential Goldman Sachs said “gold is too high and let’s sell” and then everybody sold in panic. Of course, GS is not only the greedy one getting involved. Imagine how much profit they made within those 2 days from ‘Shorting Gold’ around 1550-1620. One day in the future, all these BS guys will say “buy gold and buy more gold, it is too cheap”.
About my beloved adopted motherland, Australia
Bank here in Australia now are releasing the half-year profit result. Today, the National Australia Bank are reporting a blockbuster first half year profit result, with cash earnings up, profits soaring. Its rivals like Westpac also reported a blockbuster result last week. Here is the key point and do you believe it - banks are still able to make ‘blockbuster’ profits in the sluggish economy in Australia. What about you and me? Are we making more profits or getting more pay? We all have to pay all the increasing bills (electricity, foods, bank fees) etc – our purchasing power is diminishing.
Change! We need a change of government. China is in super boom cycle for the last 13 years, ask yourself, how much benefits have you got from our resources-rich Australia. Nothing and absolutely nothing – young graduates find it hard to look for jobs and even ‘placements/unpaid training, the industry is slow to help. Look at Singapore, the country (with no natural resources) does not even produce groundnuts are enjoying some sorts of prosperity – high employment with higher pay and higher standard of living because of China factor. Change; go for a change...cast your vote wisely in the upcoming election.
Major world markets
Asian stocks edged higher: Japan +0.74%, Hong Kong +0.86%, China +0.51%, Australia +1.09%, Singapore +0.88%. Japan particularly strong despite the weak economy. Gains in global stocks were due to an unexpected China's data – increasing April imports and exports. European stocks are also up and it seems everywhere are up and up despite all the problems in the world economy. Dow is making a new high again touching 15105.
I have been looking for a pull back from next week but who knows I can be wrong if it continues to go up till June, another turning point. I couldn’t care less if I am wrong because I already have realised profits and not a ‘paper profit’. No one can go broke by taking profits. Of course, I know that we must not miss the big run up profits but at this lofty level, I expect the upside is limited. The most, I earn less but as I say before, leave the last bit to others. But I will be very right if there is a big pull back along the way because I can buy back in at much lower price again.
Everybody (stock investors) is in the party mood including my wife. Her government superannuation fund (can’t trade/withdraw till she retires) return a whopping 25% for the last 5 months (annualised gain is almost 60%). Think seriously, is it so easy or realistic to make such kind of return within 5 months? Market is always irrational due to fear and greed. Market euphoria generally is driven by greed and ‘dysphoria’ is always driven by fear.
Everybody can make money in the euphoria market (you can be your own expert) but when the tide turns, everybody are losing money. Trading is a very emotional exercise and if you don’t have any experience and strategies, you better stay out. You are competing against the sharpest minds (in the world) with lots of experience.
Investing for a major move is the way you should aim for but you got to have vision, patience and discipline to stay in the volatile market which is driven by manipulation, fear and greed. Take gold as an example; I am sure most of the long term weak investors are already forced out of the market. Majority of the average investors already give up and say ‘the Gold Bull is over’.
What should you do in this market- stocks and gold?
If you miss the run in stock market, you should wait for pull back. If you are not out yet, take some profits at least. Stay calm and wait for the right time to buy into stock market again. Nothing goes up vertically....at some stage, there are always some sorts of retracement. Forced out gold investors, you need to reconsider to buy back gold when time is right. Gold Bull is not dead yet. He is just taking a rest and he deserves it. Gold and silver is in a state of a ‘shaking out’. There is a time to buy and there is a time to sell. Paid subscribers will be the first to know when the time come.
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