The one fact you must know about investing

“The stock market is devious, and will do what it takes to separate as many people as possible from their hard earned dollars. The persistent rise from the March lows is converting bears into bulls and bulls into XL bulls while contrarians, realists, and bears are becoming extinct.

Investors who fear they’ve lost out on this rally have begun pouring their money back into the market to avoid missing out on the next big bull. At a certain point, all the money which has been waiting on the sideline will have been dumped back into the market.

At that point, and even before that point, the base of stock owners will have become bigger than the number of investors wanting to own. Once all the dollars have been poured into the market, there is little money left to buy more stocks. Based simply on the law of numbers, sellers will overcome buyers and stock prices will fall.

Falling prices, in turn, will produce more sellers, depressing prices even more. Once this downward spiral is set in motion, it will be hard to stop. It will become clear that the bailout did not, and will not, work. Better than any auditor, the continued bear market will reveal more scams, Ponzi schemes, and improprieties resulting in further downward price pressure.”

http://finance.yahoo.com/news/11-ETFs-for-the-Dow-5000-etfguide-687742459.html?x=0&.v=1“

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