“Manufactured fraud”
By Daniel at 6 January, 2009, 11:30 am
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I find it interesting to read the various investment blogs, and the content of most of the postings. Boy have they changed over the years. After investing in this market for 30 years, I even find myself over-using the terms “manufactured fraud” to describe the market. It’s easy to get caught up in it I guess. I think the disgust has reached a boiling point for those that have been impacted, and for those that watch the market go through these “managed” gyrations. Whether you believe in the PPT or not is moot, it’s painfully obvious something is going on behind the scenes. It’s not hard to see why folks are so cynical about the market.
It takes quite a bit of searching to find a blog that has folks posting about real investment opportunities; commenting on companies that are financially healthy, and from a fundamental perspective, good investments. I don’t know about most of you, but I’ve given up on researching companies. When one successful company sees their stock drop 35% because of overwhelming forces, while a company that loses $20B sees their stock soar because they “lost less than expected,” you just have to throw your hands in the air. And this “priced in” business is absolutely ludicrous.
When you have to approach investing by trying to determine which way the market is going to be moved/forced, you’re not really investing, but gambling. I can now see why more and more folks call the US stock market a casino, because this market is about as far from a true market system as you can get. And with the heavy hitters holding two aces under the table every trading day, how does anyone expect to beat the house? Traders that know how the play the fix perhaps, but the average investor will get destroyed.
The market has shredded the hopes of retirement for millions of middle-class American’s, and I see nothing in the future that will change this. Over the last 10 years, the S&P 500 has LOST investors 10%+, and the next 10 years will be no different. Until the market is allowed to operate on its own, without outside intervention, all bets are off.
The casino remains open for business, and the pretty girls (analysts and media) are pouring free drinks (kool-aid) for all. A nice new pair of rose colored glasses at the front door, and off you go.
-R.C
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