The Dow Jones Industrial Average posted another surprising upward move today ending the day over 12,000 points – up another 4.2% (or 490 points.) When you look at what’s going on in the world right now, such a bold Dow move can seem hard to fathom. But when you get to the bottom of it all it makes perfect sense.
The world market is under extreme pressure. Much of the Middle East is in full fledged turmoil. Turkey is joining an Arab led coalition to sanction Syria. Iran is seeking nuclear weapons and is hell-bent on destroying Israel. In response to Iran’s ambition, the U.S. and some of her allies imposed additional sanctions on Iran for its behavior. China and Russia, those who are profiting most from the Iranian nuclear effort, voiced their angry dissent and shortly after England’s Embassy was stormed in Tehran. Riots are on-going in Pakistan in protest of NATO airstrikes and aggressive covert operations. And then there’s Europe, which makes the news today because the U.S. just joined several other central banks to bail out the European financial mess.
What a mistake!
Why must American taxpayers now pay for an absurd Greek lifestyle? Why must Americans bailout the incompetent foreign governments that include Italy, Spain, Portugal, Ireland, and France, to name a few. Heck, we’re having enough problems bailing out our own incompetent governance.
Let’s be fair, the U.S. has $15 trillion in national debt at the present time, the economy is in recession, and one-tenth of all workers are unemployed – this not to mention that the U.S. is staring massive cuts to Social Security and Medicare in the face.
Is this really the time, or the best use of American money that we don’t have, (remember, we must borrow money from China in order to lend some to Europe) to bailout another continent? Is it me, or doesn’t this sound stupid?
Yet the stock market ran boldly higher today. Why?
Wall Street loves money, and with today’s Federal Reserve announcement, there will be more money printed, more debt to sell, and more cash for banks – and don’t forget, the Wall Street establishment are banks – they make money with money. Today’s market move is based on the false pretense that current central banking moves will cure the ailment. But it won’t. It can’t. Today’s action was like taking a pain killer for a broken back. The only things it did was make it easier for banks to make more money – and harder for you to.
Unless of course you own a strong portfolio, one constructed with superior 15-51 construction. Here is how a strong portfolio stacks up to an average one for the past twelve months.
That’s the kind of performance you need to stay ahead of inflation. Superior 15-51 construction makes it easier to make money, build wealth, and manage your portfolio.
Don’t buy into the hype. Today’s move was under false pretense.