The opinions expressed by columnists are their own and do not represent our advertisers

Tuesday, August 05, 2014

David Stockman: Don't Buy This Dip: The Fed Is Not Your Friend

Investors should not buy the dip this time because the stock market is flying in the final approaches toward self-destruction, according to David Stockman, former budget chief in the Reagan White House.

In his Contra Corner blog, Stockman said last week’s 2 percent sell-off is likely to be viewed as a chance to simply buy back in by the “well-trained seals and computerized algos which populate the Wall Street casino.”

“But that could be a fatal mistake for one overpowering reason: The radical monetary policy experiment behind this parabolic graph is in the final stages of its appointed path toward self-destruction.”


1 comment:

Anonymous said...

My last two 401K brokers were always saying "dips are good, you can buy good bargains". I always wondered, what is the value of what you are buying? Crap at a bargain is still crap. Stocks are all overvalued now sense there is no other place to put your money that will bring returns much over 1%. The first major incident in this country will send the house of cards tumbling.