Submitted by Lance Roberts via RealInvestmentAdvice.com,
I recently wrote an article discussing some of the issues of “buy and hold” investment advice as it relates to what I call a “duration mismatch.” The issue that arises is individuals do not necessarily have the “time” to achieve the long-term average returns of the market.
As I stated in the article:
Financial stocks account for 16 per cent of the S&P 500 in the US, and their 9 per cent slide last month is the biggest single reason the benchmark index is now 5 per cent lower than at the start of the year.
But, as The FT reports, the options market is currently suggesting a worst-case scenario of a 28% decline in financial stocks over the next three months, according to none other than Myron Scholes who currently works at Janus Capital.
Disappointing data across the globe trumped by jawboning from Draghi & Fisher...
It's a double-rainbow short-squeeze day...
As Tech's squeeze offset energy's weakness...
Futures show the day's undulations...
Willem Middlekoop, author of The Big Reset – The War On Gold And The Financial Endgame, believes the current international monetary system has entered its last term and is up for a reset. Having predicted the collapse of the real estate market in 2006, (while Ben Bernanke didn't), Middlekoop asks (rhetorically) -can the global credit expansion 'experiment' from 2002 – 2008, which Bernanke completely underestimated, be compared to the global QE 'experiment' from 2008 – present? - the answer is worrisome.
Over the weekend, in response to Japan's stunning NIRP announcement, we predicted that two things would emerge: calls for the banning of cash, along the lines of previous invocations by "serious economists" such as these: