September 1, 2009

The strong survive and the weak get taken advantage of...

Remember not too long ago when the US economy was in a free fall?  And everyone sold off their stocks and took their losses?  In the 2nd half of 2008 and beginning of this year everyone including some "experts" and economists thought the sky was falling.  The media flashed "Bearish" images of the Great Depression and even the WallStreetJournal dropped forecasts of the Dow crashing down to 4,000 before the economy would get better.

Now take a moment and think back further to mid-2007 when the Dow reached record levels above 14,000, and every expert and economist echoed about how great the economy was...and that the Dow will keep rising as the fundamentals of our economy remained strong.  As the markets showed signs of optimism, the media kept "Bullish" forecasts showing the economy running stronger than ever as the housing bubble became larger and the real estate market was red hot.

Sometimes the media can show us that things are better than what they really are.  And on the contrary, the media can portray to us that things are worse than what they really are.  Not to mention that listening to some experts and economists predict the direction of the economy is similar to watching a meteorologist try to predict the direction of a hurricane. 

The real news is that the Dow did not fall to 4000 when times were thought to be the worst; and the economy really wasn't as strong as it appeared when times were thought to be the best!  We live in a capitalist economy where the strong survive and the weak get taken advantage of.  There are big forces at play that influence or trick individuals to buy in at the highest points of the market (even if you can't afford it), and sell off at the lowest points of the market.  All the while these forces (high net worth individuals and corporations) make record profits in both low and high markets.  Don't believe everything you hear in the media, nor everything you see. 

Do your own extensive due diligence and find out what's really going on.


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