Loading ...Not much is going on the market this last week. The only real story worth reporting is the nasty short squeeze going on in worthless financial institutes. Stocks like BAC, AIG, FNM, FRE, CIT, C and others have climbed astronomically to levels that make little sense. Sure, the justification is simple why they are going up. First, government is now part owner to many of these companies directly or indirectly, so they aren’t selling stocks. Second is that those who shorted are forced to buy the limited supplies of stocks that are for sell. Third, the volume of shares traded on the financials has been very high justifying the pops. Fourth, banks get to borrow at zero cost.
Given all this, we don’t recommend buying these companies at this time. Just because they can legally hide bad assets on their books until government has enough time to cause inflation doesn’t mean they are worth owning. With the potential of high risk is the risk of losing everything overnight. Instead, its you want to accumulate real wealth, buy distressed properties that are still 50% off peak prices and will generate cash flow.
This content is restricted to site members. If you are an existing user, please login. New users may register below.