Wednesday, June 6, 2012

The Maverick Conservative, The Stock Market, and Computer Gamers/Bailout Ben

Read the previus article posted on this blgo.  Then realize that I have made quite a bit of money the last tow days trying to outguess the computer gamers that now control the stock market, and Bailout Ben.  I had reduced my stock portofolio to 20% 80% in cas).  However, in the past weeek or ten days, I have gone back up o 50% invested in stocks.  Why? Is it because I have any "donfidence" in Bailut Ben as "savior"? ..................................................Sorry, you almost killed me that time as I went down on the foloor unable to breathe because I was laughing so hard.............................. 

No.  I am playing a  DNAGEROUS game here.  I can't stand to "day trade", but there is no way any SANE person can "invest" in the stock market any more.  It is a game of musical chairs.  You have to GUESS how the computer gamers on Wall Street are going to USH UT the stock market at certain times.  Then you have to GET OUT in time.  If yo udon't get out in time, yu lose.  Plus, you need to invest in companies that Bailut Ben Bernake WON'T LET FAIL (or financially solvent companies beaten down so far tthat they will bounce back, with no danger theey will go under).  Thus, in recent days, I have AGAIN i"invested" in Citigroup, starting with the stock at about 26.

Is this because I think Citigroup is a "wll run" company?  This is not even worth giing to the flloor to luaght about.  Don't be silly.  But we already KNOW that Bailout Ben Bernake is PRINTING MONEY for Citigroup, and that he will NOT LET CITIGROUP GO UNDER. Now, in the end, this attempt by a meree MAN to CONTROL tghe economy of the world cannot work.  But I am GAMBLING that the final collapse is not yet upon us, although I think it is getting pretty darn close.  So long as the final collapse does nto happen,, Bailut Ben is going to MAKE SURE that Citigroup does not go under.  At 26, Citigroup is really selling at 2.60 per share, in terms of teh share price before the reverse 1 for 10 stock split a few years ago.  I have CONSISTENTLY made money buying Citigroup below 30, and selling it above 30.  You can see thqat this has NOTHING to do with the "fundmentals" of Citigroup.  It is a GAME--and not even the kind of DAILY game the computer gamers on Wall Street are now pllaying. 

The stock market does NOT move on economic "fuhndamentals"--excpet in the sense that a major collapse in the economy EVENTUALLY will have its effect.  But on a daily, weekly, or monthly basis, the stock market is moving completely on COMPUTER GAMING and HYPE>  Gamblers like me may try to OUTGUESS these insane peole, but yoiu can see how DANGTEROUS this is.  Don't try this at home.  Only insane "professionals" like me whould ever try this, and I admit I am INSANE. 

But you are even more INSANE if you think that there is any such thing as "long-term" investing any more. m in thisera of Obama and Bailout Ben Bernanke (not to mentin the comnputer gamers that are reeally controlling the stock market with their dialy computer program trading). 

No.  I did NOT just tell oyu to "buy" Citigroup.  What I told you is WHY I jsut bought Citigroup, and already have a profit on the trade.  But CAN I get out in time, or will the computer gamers immediately drive the stock market back down based on "fears" of what is hapening in Europe?  What "fears"?  "Fears" are what we had LAST SUJMMER.  Right now, Europe is a DISASTER, and WE are approacing that situatin.  The ONLY reason we look fairly good is because we are nto as bad as Europe,  We still have the RESIDUE of our old "free market" economuy, which no longer really exists.  Taht makes us the strongest economy in tn a world of FAILING economies.  Oh, I laso have a profit on MORGAN STANLEY (yes, the Wall Street firm that MISPRICED Facebook, but made money for its client).  Again, I am going on the theory that they will not LET Morgan Stanley fail, and on the idea that the time to buy a compnay (whose business is not disappearing, in a business where they will be alowed to fail) is when the HYPE has driven the stock of that compnay to a LOW price.  Ype.  I made money on Moraan Stanley before, buyhing it at 12. I hpe to do it again, but look how DAnGERUS tghis is.. Readers of this blog, however, know that I will DARE almsot anything.  I will certainly "dare" to tell you that Bailut Ben Bernake is wearing o clothes. However, yu can be more certain I am RIGHT about Bailout Ben Bernanke than that I am right about this game of computer musical chairs they now call a "stock market'>  These are truly The Stupidest People on Earth (the peole on Wall Street)), but they are CONTROLLING a RIGGED GAMEE.  You wuuould probably be better off listening to ME on stock investments than you will be listening to Jim Cramer.  But you can say that about throwing darts at a list of stiocks.  Would you be better off listening to me on SPECIFIC STOCK INVESTGMENTS than you wuld be if you threw those darts?  PROBABLY NOT>.  And you wuld be playing the most DAnGEROUS GAME you ahve ever played. Don't do it. Don't do this at home.  One of these days, I am going to write the article abut how YOU, as an individual, SHULD "invest" in the stock market. I asure you, the article will tell you NOT to do it the way I do it (almsot as a matter of entertainment rather than real "investing'). Until then, do NOT try to follow my stock 'advice".  I am merely trying to illustrate for you how DANGERUS the stock market really is.  I think you are learning, as stock market VOLUME has declined something like 50%.  And the Wall Street peole on CNBC act like they don't know why that is!!!!!  Did I not tel you that these are The Stupidest People on Earth?  Maybe not as stupid as YOU and I are, since they have somehow gotten US to bail THEM out, and CONTINUE BAILING THEM OUT EVERY SINGLE DAY.  But that is a kind of 'smart" that eventally destrouys the goose that lays the golden eggs, and wil eventually destory Wall Stret. 

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