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Stock Market Game

March 19, 2008

Fewer and fewer people are in the stock market game, just like more and more people are having their homes foreclosed. Brokers want YOUR MONEY. Stock brokers make money when you buy and sell stocks. The story line, the stock market game is that you can make money when the market is going up and you can make money when the market is going down. Yes, and miracles happen- every now and then!

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In the last ten trading days, the Dow has been down TRIPLE digits on five occasions (215, 138, 154, 195, and 293 yesterday). The Dow has been up TRIPLE digits on two occasions (417 and 420 two days ago). In the last two trading days the market has been up 420 (75 basis point interest rate reduction) and down 293 points the following day.

Listen, there are very few pros with money to lose that can make money in that kind of action, let alone the small money people. It’s lambs to slaughter time!

The Dow Jones industrial average lost nearly 300 points or 2.4%, according to early tallies. The broader Standard & Poor’s 500 index lost 2.4%. The Nasdaq composite lost 2.6%. Slumping oil and gold prices did little to relieve inflationary worries and instead sparked a big selloff in oil services and metal and mining stocks.

And as I’ve been saying for months now, we’ll be seeing gold prices move $25-$50 on ONE DAY whereas it would normally take a week to see such moves. After gold crossed the $1,000 an ounce mark several days ago, the yellow commodity sank a whopping $59 Wednesday. Owning the real thing (coins or bullion) was less hurtful than owning the stocks which fell anywhere from 7-10% in a few hours.

Don’t buy into the news that you can make money in this market. Sleep well at night. Keep your money in cash even though it pays little. You get to sleep at night and you’re not losing money. If you think all is well, wait til you see your first quarter 401(k) results next month. And real estate prices are not at the bottom yet!

The stock market game is a serious one currently and only the most seasoned players should be at the gaming tables- meaning those who can LOSE and it doesn’t matter all that much.

Written by Ernie · Filed Under Gold News 

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