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.”
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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.
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