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|User Info||Aooooooga! Aooooooga!; entered at 2018-10-11 10:59:24|
Registered: 2007-09-10 Scottsdale, AZ
The other big issue is the high frequency trading computers. They trade on momentum and not fundamentals. Yesterday, we saw what happens when the momentum goes the other way. I watched the DOW dump over 400 points in the matter of 2 hours. Add in the fact that the fundamentals are completely insane and this is what happens when the bubble gets to big. When stocks like Costco are trading at 32 times earnings, then you have to take notice. There is so much leverage out there that isn't marked to market, something has to go wrong here. Trump wants to blame this on the Fed, but these interest rates never should have stayed at zero for more then a couple of years. They protected wall street and gave them the ability to issue billions in more leverage to make believe the economy was growing. I have been telling the investment committee I am on, that there is no organic growth in our economy. It's all about stock buybacks and Non-GAAP accounting. That made me the least popular guy in the room....