Royal Bank of Scotland: "sell everything"
02-08-2016, 05:18 PM
#171
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Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
Originally Posted by CBreezy
Yawn. More Yawns.
This is for you and those like you, Breezy...
I found this note from United Capital rather interesting (emphasis is mine):
---->This really goes to the root of why I am so fed up with the financial advisory industry as a whole. Let me translate the above for you.<------
“For anxious investors who want a quick answer to the question, the simple answer is, “No.” Now we’ll explain why. First, corrections are natural, normal, and we’d even say, necessary. I’ve gone through many of them, having started my career in investment management just two months before the 1987 crash.
While different circumstances led to each one, the fundamental aspect of a correction (or even a bear market) is that the market simply reprices securities to better match the underpinnings of an investment as they currently are.
Sometimes, this may happen because of a recession, which we do not think is the most likely scenario, but in many other cases, it’s simply because stocks got a little ahead of themselves. Right now, stocks in the S&P 500 are more expensive relative to their earnings than they historically have tended to be, according to Ned Davis Research. That means that investors bid up share prices more than (or perhaps one might even venture to say “earlier than”) they should have.
In that sense, a correction is just that: “correcting” a stock’s value to what the earnings and net worth of the company in question should dictate.”
While different circumstances led to each one, the fundamental aspect of a correction (or even a bear market) is that the market simply reprices securities to better match the underpinnings of an investment as they currently are.
Sometimes, this may happen because of a recession, which we do not think is the most likely scenario, but in many other cases, it’s simply because stocks got a little ahead of themselves. Right now, stocks in the S&P 500 are more expensive relative to their earnings than they historically have tended to be, according to Ned Davis Research. That means that investors bid up share prices more than (or perhaps one might even venture to say “earlier than”) they should have.
In that sense, a correction is just that: “correcting” a stock’s value to what the earnings and net worth of the company in question should dictate.”
---->This really goes to the root of why I am so fed up with the financial advisory industry as a whole. Let me translate the above for you.<------
“We don’t really manage your money. What we do is encourage you to buy some stuff and then sit on it so we can charge you a fee.
When prices decline, because we don’t really pay attention to the markets, we have to send out an excuse letter to keep you from transferring your money to another advisor who actually pays attention to what is going on.
Even though we knew stocks were overvalued, and such overvaluation leads to corrective cycles in the market, we really didn’t think about selling stocks to reduce the risk of loss. We are too busy trying to get other people to invest money with us. The more the better.
We hope you understand, but our revenue line is more important than yours. Oh, and please deposit more money in your account because dollar cost averaging works better for us than it ever will for you.”
When prices decline, because we don’t really pay attention to the markets, we have to send out an excuse letter to keep you from transferring your money to another advisor who actually pays attention to what is going on.
Even though we knew stocks were overvalued, and such overvaluation leads to corrective cycles in the market, we really didn’t think about selling stocks to reduce the risk of loss. We are too busy trying to get other people to invest money with us. The more the better.
We hope you understand, but our revenue line is more important than yours. Oh, and please deposit more money in your account because dollar cost averaging works better for us than it ever will for you.”
Last edited by SayAlt; 02-08-2016 at 05:33 PM.
02-10-2016, 04:50 AM
#172
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Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
Global central banks have run 'out of ammo'
02/10/16
Central banks are pulling out all the stops to turn around the global economy.
They're pumping money into their economies, creating negative interest rates and buying billions of dollars in bonds. Yet experts are worried these strategies will not be enough to turn around the slump in the world.
"Major central banks have run out of ammo," says Ed Yardeni, chief investment strategist at Yardeni Research.
Global central banks are running 'out of ammo'
02/10/16
Central banks are pulling out all the stops to turn around the global economy.
They're pumping money into their economies, creating negative interest rates and buying billions of dollars in bonds. Yet experts are worried these strategies will not be enough to turn around the slump in the world.
"Major central banks have run out of ammo," says Ed Yardeni, chief investment strategist at Yardeni Research.
Global central banks are running 'out of ammo'
02-10-2016, 06:53 AM
#175
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Joined APC: Jul 2009
Position: Downwind, headed straight for the rocks, shanghaied aboard the ship of fools.
Posts: 1,128
Originally Posted by CBreezy
Be careful, he'll call you an idiot and moron next because you don't join his Cult of Economic Doom.
02-10-2016, 07:07 AM
#176
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Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
You mean like this?
The irony is as hilarious as the hypocrisy.
The other amusing thing is, while I provide data and professional opinion to back up my words of caution, all you guys do is deny and name-call without posting anything that backs up your opinions.
And then you hive-five one another like you're smart.
LMAO
Originally Posted by thevagabond
The sky is falling! The sky is falling! - Chicken Little
The irony is as hilarious as the hypocrisy.
The other amusing thing is, while I provide data and professional opinion to back up my words of caution, all you guys do is deny and name-call without posting anything that backs up your opinions.
And then you hive-five one another like you're smart.
LMAO
02-10-2016, 09:10 AM
#177
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Joined APC: Jul 2009
Position: Downwind, headed straight for the rocks, shanghaied aboard the ship of fools.
Posts: 1,128
We're not denying anything. We know the market is momentarily correcting. It does that and it will continue to do so. Some of us find your panicky it's the end of the world approach to investing and life in general humorous and we're going to poke fun of it. Keep on quoting your doom and gloomers and we'll keep on lampooning you Chicken Little. By the way, many people who didn't panic in '29, who dug in and held their ground, did very very well for themselves long term. Good luck with your small losses as you keep cashing out in your quest to time the market.
02-10-2016, 09:24 AM
#178
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Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
Originally Posted by thevagabond
the market is momentarily correcting.
Ummm, no, it isn't. But you go right on thinking that way. It's all you know how to do.
In fact, you sound a lot like Obama attempting to claim that unemployment is below 5%....and nevermind the 94+ million people out of work and the lowest labor participation rate since the 1970's.
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