Oh where, Oh where have the Doom and Gloomsters gone?

Fish gotta swim, birds gotta fly, girls gotta text, and if there is a 1000 point sell off in the market the Doom and Gloomsters will come outta their caves.  Only a few weeks ago the D&G crowd came out and announced the end was near and the market was going down more thousands of points.  Ahh...well today it is well ahh...up about 1000 points from the point it was announced it was going down for the count.  What happened? 

Remember when your humble blogger, OK well not your so humble blogger, was pounded by numerous posters on Facebook and elsewhere that we did not know what we were posting about and should go away and shut up.  That the market was going down and our advice for investors should be to sell everything, put it under your mattress, and hide under the bed.  Can not tell you the number of inside messages we got from registered representatives who could not rebuke such talk and wished they could but due to RR rules had to remain silent.  Well your humble blogger here has not such rules since we trade and invest in our little private account and private hedge fund we can say it loud and clear,  "YOU DOOM AND GLOOMSTERS WERE WRONG AGAIN !!"  

These D&G creatures come out because frankly they do not have the experience and most importantly a history of personal former mistakes in the market.  They do not listen and read intently to a sizable audience of market and financial opinions to understand what they do not understand.  We would expect they get much of their so called knowledge from such sites as Zero Hedge and Peter Schiff etc.  We too take a look at these sites regularly, but only for amusement and to see if we missed anything important.  On the other hand we daily kept abreast of other bloggers such as Doug Kass, Larry Kudlow, John Tammy, and a couple dozen more diverse opinions.  We use over 36 years of market experience which includes a combinations of technical and fundamental analysis to daily trade and lifetime invest.  In the end our lifetime of results speaks for itself and that is the steady compounding of investing and reinvesting to produce a build up of wealth that is tax advantaged. 

So where is the market going from here?  We got that down too and unlike the D&G crowd we will absolutely positively guarantee we will be right.  There are two scenarios.  One, we are in a market that resembles the late 1930's in America. Interest rates are low and will stay low for a good period here, we are talking years maybe decades below 5% mortgage rates. Just not much economic growth and not much reason for business to reinvest profits.  Therefore profits are being reinvested into their own stocks via dividends and stock buy backs.  That means anyone who is invested in mega and large cap mutual funds or ETF's will do just fine and grow their investments about 6% to 7% for as far as the eye can see.  Not bad if you just leave it there and let it compound over a lifetime.  We suggest a cheap expense Vanguard 500 fund or ETF.   Just add to it in a regular savings via an IRA or 401-k and it is even better since it is tax advantaged.  Anyone who bets against America long term is a fool and has been made a fool for some over 200 years. 

Now there is one other scenario but it is only better.  That is American voters, more specifically the young folks, figure out that voting for gay marriage and free birth control does not fill your gas tank, put food on your table, or grow your retirement nest egg the best. The under 35 year old crowd will discover what the 35 year old to 55 year old crowd already knows and that is we need some leadership in Washington DC that makes me wealthier by growing this economy, creating jobs and making my wages go up.  They together find that leader, vote them in, and experience what the over 55 year old group experienced with the election of Ronald Reagan that lower taxes, lower regulation, and free markets make everyone better off in the long term. In this scenario the young folks experience a renaissance of Free Market America and live a 30 year boom too. Businesses quit increasing dividends, stop buying back stock, start growing their business, the Federal Reserve goes into hibernation, and stocks grow 9% to 12% annually.  If you want to see what 30 years of 6% compounding versus 12% compounding does to your retirement assets go to your online computer and see how the millions, yes I typed millions,  add up. 

So as we opined on our last posting, "Young people this is your economy and you get to choose if you want to live in it". your choice  and your life, scenario one or scenario two.  We guarantee you get to CHOOSE one of the two choices.