The stock markets aren't happy with the election results.

[EL PRESIDENTE]

FED is hinting at revising their open ended easing program sometime in the future. I've noticed a few more "experts" trying to make statements about QE, Interest rates and what's going to happen...nothing significant or mainstream yet, but there's more people "chatting" out there.

 

[blazerboy30]

FED is hinting at revising their open ended easing program sometime in the future. I've noticed a few more "experts" trying to make statements about QE, Interest rates and what's going to happen...nothing significant or mainstream yet, but there's more people "chatting" out there.

Interestingly the FED meeting minutes that came out yesterday showed talks and discussions of slowing the QE and purchasing sometime this year. It was pretty surprising to see the market up a lot yesterday with those minutes being release. Perhaps that's another sign of the irresponsible euphoria in the market right now, which will make things hit even harder when it happens.

 

[EL PRESIDENTE]

investors won't pull out until that point where they can't make money. a good jobs report like what came out this morning is bad for investors because if it reaches a certain point, that is when the FED is going to start tapering off QE4. everything is the inverse of what you would reasonably expect, and that is due to all of the FED intervention in the economy. Its just a cat and mouse game right now.

 

[blazerboy30]

Just the mention of slowing QE in September and possibly stopping by mid 2014 is causing a decent sell-off so far. Pretty much every asset class is getting hit: US stocks, foreign stocks, treasuries, bonds, commodities, oil, gold, REITs, silver. Such a broad-reaching sell-off shows that the market was artificially propped up and being priced for that. Instead, you would usually expect that a sell-off in the equities would lead to buying of bonds, treasuries or gold. But not in this fake, artificial market.

How low will this drop?

I sold out of everything on May 23, so I'll be sitting on the sidelines waiting to pick up some cheap shares.

 

[magnifier661]

Just the mention of slowing QE in September and possibly stopping by mid 2014 is causing a decent sell-off so far. Pretty much every asset class is getting hit: US stocks, foreign stocks, treasuries, bonds, commodities, oil, gold, REITs, silver. Such a broad-reaching sell-off shows that the market was artificially propped up and being priced for that. Instead, you would usually expect that a sell-off in the equities would lead to buying of bonds, treasuries or gold. But not in this fake, artificial market.

How low will this drop?

I sold out of everything on May 23, so I'll be sitting on the sidelines waiting to pick up some cheap shares.

Yeah it's looking very bleak. The market is in a downward spiral.

 

[blazerboy30]

Yeah it's looking very bleak. The market is in a downward spiral.

Like I mentioned, the thing that makes this downward trend difficult is that fact that the various asset classes are moving down together.

Any thoughts of where to move funds since moving from equities to bonds doesn't appear to be a smart move at this point?

I'm not to the point of outright shorting the market...yet.

 

[magnifier661]

Like I mentioned, the thing that makes this downward trend difficult is that fact that the various asset classes are moving down together.

Any thoughts of where to move funds since moving from equities to bonds doesn't appear to be a smart move at this point?

I'm not to the point of outright shorting the market...yet.

I think healthcare will still have an upward trend because the government supports it.

 

[blazerboy30]

I think healthcare will still have an upward trend because the government supports it.

So far it's moving down with the broader market.

https://www.google.com/finance?chdn...&q=NYSEARCA:XLV&ntsp=0&ei=_I7IUajXJMakiQLbtgE

I don't think any equity sector will not be strongly correlated with the broad market. I'm looking for other asset classes, outside of equities, that will be anti-correlated. So far the U.S. dollar fits.

 

[magnifier661]

So far it's moving down with the broader market.

https://www.google.com/finance?chdn...&q=NYSEARCA:XLV&ntsp=0&ei=_I7IUajXJMakiQLbtgE

I don't think any equity sector will not be strongly correlated with the broad market. I'm looking for other asset classes, outside of equities, that will be anti-correlated. So far the U.S. dollar fits.

I've invested in TEVA "Tetra Pharma"; they make generic drugs. THey are on a slide, but hardly at the rate of other sectors.