These Billionaires Are Dumping US Stocks… Should You?
By BILL BONNER, CHAIRMAN, BONNER & PARTNERS
BonnerandPartners.com
MARCH 19, 2015
Dear Diary,
Fátima, our new 10-year-old English-language student, is a stranger to modern economics… as well as to vernacular English.
“What do you think of central bank policies?” we asked.
“What’s a central bank?”
“It’s the bank that provides money to the other banks.”
“Where do they get the money?”
“They create it out of nothing.”
“Oh.”
“Would you like some money from the central bank?”
“I guess so.”
Fátima must be aiming for a career on Wall Street.
Let the Good Times Roll
Yesterday, we promised clarification. Central banks are desperately pushing up stock prices. But we have our “Crash Alert” flag flying over the ranch house.
What gives? Which is it? Higher stock prices or lower?
The short answer: both.
Yesterday, the Dow shot up 227 points – or 1.3%. Gold was up $14 to settle at $1,164 an ounce.
What will it do tomorrow or the next day?
It’s up to Mr. Market. He will do what he wants in his own sweet time.
He must be deeply conflicted.
On the one hand, central banks are tempting him to loosen up… to get him to have some fun… and let stock prices fly.
On the other hand, he remembers what happened the last time he did that: Everybody was having a great time, until someone called the cops.
Over the last six years, it’s been a case of “laissez les bons temps rouler!”
“Do you want some money from the central banks?” ask the authorities.
“I guess so,” answer banks, hedge funds and speculators.
Billionaires Dump US Stocks
The Rest…HERE
