The deflationists are right about one thing, you will be able to buy stocks at at much lower prices, soon.
Take a look at the six month daily chart of the SPY and pretend you were born on that day in March when the index hit bottom at 67.10. i.e. zoom in on the March to today part of the chart. Then all you know is a bull market, everything prior to that, namely the huge crash from 1600 that landed with a thud at 67.10 on your birthday is outside of your data set. The idea of shorting would seem unnatural to you and that is exactly what the Street elite want. The talking heads on CNBC and Faux business news are at it again as if they have no memory of July 2007 to March 2009. Don't let them suck in. As I have shown with the DJIA recently the SPY is in the process of forming a local high in a downtrend, otherwise known as a higher low. When you zoom back to the full year you see the downward stair stepping I'm talking about.
Novice investors get caught up in the media hype and get burned. Remember this the news is always the best, the outlook always the most promising, the bullishness is always the highest AT THE END OF THE RUN. Why? Because as they are pulling the outsiders in, the insiders are getting out. And right now the insiders are getting out.
Not to belabor the point, but just to belabor the point check out the SPY for the last three years. see an uptrend in there?
The really bad thing about these insiders is that they aren't just satisfied with their bailouts and profits on insider trading, they want to squeeze every last cent by conning you in as they get out. Can't get blood from a stone huh.
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