mind expanding nonsense

401st Post

401 019

How do ya follow a massive celebratory, self-congratulating, tribute to my ego, 400th Post?  Well with a 401st post.  I could have done  a 400th Post trilogy, but that’s been pretty much overdone.  What with Star Wars, Indiana Jones, Men In Black and Lord of the Ring trilogy, which was actually written as a trilogy.  What will they think of next?401 020

Lately, I’ve taken to doing small little sketches, often times doing up to three on one page.  It’s not like I’m taking a big risk with these “itty-bitty” little diddies.  Avoiding risk is paramount on my mind at this stage of life (Geezerhood), cause if I bet wrong, I can end up screwed.

And speaking about getting screwed.  Now’s not the time to jump into the Stock Market, all the euphoria about new highs notwithstanding. The economy may have the appearance of being back on its feet, but a lot of people have been left behind, and sadly, it looks like it’s permanently.  Incomes are not growing, and they say inflation is under control, despite the fact that everything one has to buy to survive (food and gasoline) is steadily going up in price.

All the announcers on CNBC (the business channel) are wildly bullish (and, wildly ultra-conservative) and talk like a new bull market has just begun.  I always thought that when it came to the stock market, you were supposed to buy low and sell high (not while high, cause that can lead to some mild disasters); not the other way around.  To me, the stock market looks high (consider the source), at least according to long-term stock charts.  While the experts are euphoric, and say: Nothing but good things lay just around the corner, or in the next quarter.401 021

Folks who bought in 2000 during the “Dot Com” bubble, had to wait 8 years to recover from that one.  Remember what he had going on in 2008?  The “Housing Bubble”.  That didn’t turn out so well.  Now we’re back to those same old highs, but this time it’s a different “high”, a “Liquidity Bubble”, being artificially support by our central bank: the Federal Reserve.  The thinking is: Money  has nowhere to go except into US stocks.  Banks sure ain’t paying savers squat on C D’s and money market accounts. And the Almighty Dollar is the king of currencies, while gold plummets. But don’t be fooled.

And speaking of fools, have you ever heard of the “Greater Fool” theory of investing?  You know that the Stock Market ain’t like going to WalMart, where all the stocks (mostly made in China) are sitting on a shelf just waiting for you to buy them at a discounted price. Nope, it’s basically an auction: for every buyer, there’s a seller.  Smart Money (which often times buys a lot of dumb shit), buys low, and sells to Stupid Money, when stocks are high (buy low – sell high…but not under the influence).  The Greater Fool theory states (and I’m a fool for great theories):  Buy high, and sell to the fool who is willing to buy even higher.  That assumes that there’s a lot of dumb-shits out there just waiting to get fleeced.  That’s why the “Experts” are encouraging everyone to get into the Stock market.  What they fail to say is: Once everybody is in, there’s no more buyers left, and stocks will fall from lack of buyers.

Well, all I can say is, they ain’t gonna fool me.  Or as The Who said, “I won’t be fooled again”.

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Comments on: "401st Post" (18)

  1. Snoring Dog Studio said:

    Your blog is a great investment. Thank you for the 401st post!

  2. Are we always thinking that prices are going up? Do we ever recognize them going down? Actually I think inflation has remained at about 2% per year, which is considered healthy for the economy. But I too rue the price of milk. In the end, our own financial health determines how we see the world. Nice little vignettes there Hansi. I enjoyed.

    • Right now we have a strange mix of inflation and deflation. Commodities are sinking, along with gold and bond yields. Gasoline remains stubbornly high, and some food prices are on the rise. Crazy world we live in right now.

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  3. It would seem there is very little difference to life on the other side of “the pond” then. Love the itty bitties.

  4. “Folks who bought in 2000 during the “Dot Com” bubble, had to wait 8 years to recover from that one” – Big deal ! I still have not recovered from that day June 18, 1949 when I “emerged”.

  5. The rich get richer and the artists and poets starve. It was forever thus. 🙂

    Happy 400 anniversary.

  6. I too am leery of the current market, but now, understanding the your investment powers, I will no longer watch CNBC until they show “Hansi: Enhancing Your Money”

  7. I think you’ve outlined why some of us are just a little afraid to fully retire. Wishful thinking about the economy isn’t a good investment, that’s for sure!

    • I retired nine years ago at age 57, but have continued to work part-time, mainly as a way to hedge against the horrible economy, that has recently been squeezing people out of the middle class.

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  8. Kudos on the big Four Oh Oh – Oh that I should live to see that day…

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