Current Risks in the Stock Market
The article below will tell you why I am into alternative ways of generating sources of passive income rather than look to the Stock Market.
By Jorge Malo
If you pick up the newspaper or see the news on TV, you probably noted that the Dow Jones Index is making new highs almost everyday. Everybody is happy, and as soon as the Dow closed above 13.000 for the same time, some analyst started to talk about the index going to 14.000 in 2007. Remember the year 2000?
Probably the main difference between the year 2000 and 2007 is the excess liquidity that today exists in the markets around the World. That excess liquidity has to be invested somewhere, and since the
On the other hand, you probably noticed that you are paying higher prices at the pump than in the past. Also, your grocery expenses are increasing. The FED takes into consideration core inflation for their decision making, which is inflation excluding energy and food. The problem is that 2/3 of the economic growth in the
As you can see, with the Dow Jones above 13,000, and the S&P 500 at about the same level it was in 2000 before the crash, investors are discounting any bad news or risks that the economy presents. As I stated at the beginning, the reason for this is the excess liquidity in the World. Too much money following a few assets. As an investor in this market, you should take into consideration the risks involved and either decreases your exposure to the
Disclaimer: There is a risk of loosing money when investing in derivative products such as Futures and Options over Futures. Consult with your broker before investing in this market.
Below are the means by which I diversify myself from the current stock market. I was heavily involved a few months back. But not now…hope to use the methods below to generate enough cash for me to scoop up cheap and valuable assets when the economy goes down. The smart ones love a downturn, the dumb ones dont. :)
Feel free to click on them to find out more and if you are interested can join them at a very low fee or free!