Royal Bank of Scotland to investors: 'Sell everything'

If you trade your 401(K), not not a good trade. But you shouldn't be trading with your 401(K). That money should be invested.

If you are invested and don't need the money soon. ... You will have a really good buying opportunity sometime in the near future. Everything that RBS pointed out in the thing that started this thread is still true, except valuations are even more ridiculous now (beyond levels that have precipitated past crashes) and the worldwide debt levels are still increasing and interest rates are still being manipulated. There is no fundamental reason for a stock market rally. It's all euphoria. Earnings have been anemic quarter after quarter and growth in the U.S. has been subpar. It has been all central banks and fantasy rationalizations. Now, bond yields are spiking. The fact that equity markets are not only ignoring that, but are grinding higher is all you need to see to know that it is irrational exuberance. Reality will kick in -- whatever the catalyst that pops the bubble is. When this thing comes down, it is going to come down hard. You will have a crazy good buying opportunity if you want to own equities.

 

1) Figured you'd at least wait till it closes above that level.
2) I was wrong in that post -- even though you bookmarked it and waited eagerly.
3) Now, why not dig out the myriad of posts saying saying things to the effect of, "The central banks can blow this bubble to 2300 or beyond and it is still a fantasy." When this market crashes will you be back as eagerly to revive the thread? Honest answer.

 

I have never predicted "imminent financial panic." It's just dishonest. A few people have cherry picked sentences out of pretty long, and reasoned posts, and ignore every pain took to point out that I was not making market timing predictions or predicting anything imminently. Our markets have been manipulated by worldwide central planning in the face of hundreds of trillions of dollars of debt creation that has way outpaced world economic activity. Their ability to artificially create and prop up a boom in markets can't be timed as to when it is going to end. It will end badly. Worse than it did in 2008, because this is just an extension of what made 2008 happen, with the debt levels and the monetization of the debt taken to an even greater extreme. This time, there won't be any propping it up with phony monetary manipulation. A massive deleveraging is coming and you'll see where the U.S. equity markets -- being bought and bit up to extreme valuations on buybacks and excessive margin -- end up then.