Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Forget Goldman Sachs; Only Fools Rush Into Stocks

Commodities / Gold & Silver Stocks Mar 27, 2012 - 07:06 AM GMT

By: Money_Morning

Commodities

Best Financial Markets Analysis ArticleShah Gilani writes: Is Goldman Sachs (NYSE: GS) playing us all for Muppets when they say stocks now present a generational buying opportunity?

The investment bank's 40-page bullish report, titled "The Long Good Buy: The Case for Equities," says to forget the huge run-up since 2009, forget the 25% rise in equities over the last five-and-a-half months, and forget bonds. This party is just getting started.


Are they right? Yes, they are.

Should you heed their advice and sell your bonds and load up the truck with equities? Hell no.

Goldman's report is like me forecasting increasing dark towards evening. It's too obvious. Of course stocks are a better buy than bonds in the long run when bond yields are so low.

But there's this little problem of timing that they don't address.

If you load up on equities now, and there's a correction, or worse, a double-dip in major market economies, and you get taken to the cleaners, unless you're young enough to hold onto your stocks for a generation, you may be done... as in toast.

Right now is not the time to jump onto the bull market. It looks great, I agree. But this creature is getting restless, and coming into the spring, some caution may be warranted.

If you want to get in, have patience. There's plenty of time, if the markets are presenting a generational buying opportunity.

By the way, they already have had a generational run, and you probably missed it. Did you load up in March 2009? Did you load up in October of last year?

Piling on right now is exactly when the fools rush in. Forget Goldman. You know they fleece their clients. Just because you aren't a client doesn't mean they're not out to use you, too.

The markets didn't rally on the Goldman report. They shrugged it off as mere public relations, perhaps to defray that conversation about the firm playing its clients like puppets.

What drove markets last week was China. There are increasing worries that the Chinese economy may be slowing more than anticipated. If that is the case, if Chinese GDP growth slows to below 7.5%, global markets will cool down. If its GDP growth falls to 5%, or lower, global markets could crash.

Yes, I mean crash, as in, drop 50% in short order.

I'm not saying that's going to happen. But if it does, well, you might not want to dump all your government bonds just yet.

Now, about Jon Corzine...

Proof That Something Is Very Wrong with Our Legal System
Seriously, what is wrong with America's regulatory apparatus? We make laws that don't get enforced when the criminals are too powerful, too connected, and probably have too much dirt on too many other important people to be taken to task.

The guy authorized (forget that "allegedly" stuff; according to the person who he gave the instructions to, he did it) the transfer of customer funds out of MF Global to JPMorgan Chase.

Why? Because they needed to pony up some cash to maintain trading positions they had taken - speculative trading positions that helped sink the company.

There are CFTC regulations about co-mingling customer funds with firm accounts. There are regulations about safeguarding customer accounts. There are laws that support the regulations and penalties for breaking the laws. Regulations are laws.

What I don't understand is this.

Why isn't Corzine being charged with signing off on MF Global's bogus financials as its CEO and being prosecuted under Sarbanes-Oxley?

Stay tuned, because I'm more than curious why this whole affair has the stink of a government cover-up. There's more to this than meets the eye, and inquiring minds need to know.

Lastly, did you hear the one last Friday about BATS?

This Is BAT-ty as Hell
If you don't know, BATS stands for "Better Alternative Trading System." And it is a behemoth of a trading venue. It's an electronic exchange that accounts for more than 10% of total equity trading volume on any given day.

The firm was started by a high-frequency trading pioneer who wanted a better place to do his trading and a better place to attract flies to his spider web.

BATS wanted to raise $100 million in its own IPO last week. It didn't float its new shares on the NYSE. It didn't float them on Nasdaq. It floated its new shares on its own BATS network exchange.

This was a first for BATS. Their IPO was the first IPO to be launched at the BATS trading venue.

And what a blast they had, debuting their own stock on their own exchange.

It was unfortunate - some might call it plain old bad luck - that the day of the IPO, regulators said they were launching another deeper, longer look into the effects of high-frequency trading and the relationship some exchanges (can you say BATS out of Hell) have with high-frequency trading outfits. In other words, they want to know, are there any disadvantages to regular investors? DUH, are these people imbeciles, or what?

For your information, the NYSE and regulators approved a massive new computer warehouse the size of a few football fields across the Hudson from the NYSE, in beautiful New Jersey (maybe the Jersey Shore... and maybe it's run by someone called Snooki or The Situation).

Why so big? So that high-frequency trading firms and hedge funds can "co-locate" their servers right next to the Exchange's servers to reduce "latency" - which means the nano-seconds it takes to push orders around and get them filled.

DUH, these idiots gave HFT folks space next to their computers so they can trade faster, and they didn't know what they were doing? Please, this is comical.

Do I need to mention that Jon Corzine was New Jersey's governor when this was happening? No, you probably knew that.

Anyway, BATS had a bad morning, reading the news after it priced its IPO on Thursday night. But, as bad as the news was for BATS on Friday morning, things were about to get a lot worse.

BATS trading system blew up its own IPO. A software glitch sent the IPO share price from its debut at $15.25 (well below the $16 it was priced at the night before) down to a fraction of a penny in a matter of seconds.

It was all over in about nine-and-a-half seconds. The IPO was withdrawn, and a lot of insiders' dreams of summering on the Jersey Shore were squashed.

Now, don't get me wrong, I never wish anything bad on anyone. Well, usually not. But somehow I can't help but laugh at this extraordinary kerfuffle.

Source :http://moneymorning.com/2012/03/27/forget-goldman-sachs-only-fools-rush-in/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014