Tag Archives: Stocks 2013

DOW stocks will go up to 16000

As you all know the stocks have been going up since 2010. If you have missed the boat, all I can say is SORRY but you still can put in the market but they are all time high. For those who had put in since 2010, we are riding the high waves thanks to you all.







Why is the stocks going up? Economics 101- cheap money

FED has been buying bonds and thus the interest rates is so low. It is called cheap money. When the interest rate is so low, you are losing money putting money in the bank. So where do you put the money?

2 sectors of the economy are doing well…you guess it right- the stocks and the real estate.
When your neighbors are making profit in the stock investments, and you have money in the bank, of course you will feel piss off. You and the rest want to join the fun, the fun of making money the least work at possible-Making money work hard for you. So you and the rest pump in your money in the stocks and this raise the waves, more money raise the waves. Whohooooooo, the inertia effect- you know the physics term, one energy pushing one energy to make a bigger energy!!.

Today the FED, thanks to the mouth of Mr.Benerke, he has emphasized that the FED will keep buying bonds until the economy is stable and the unemployment is down to 6.5%. Heck we all know it gonna take a long while to achieve that goal. So for the time being, enjoy the money train and make more money!!

Cheap money means low interest rate which spur home buying. Homes are selling like hot cakes and prices of homes are rising with multiple offers. But bear in mind, in some states like California, Texas,Nevada and Arizona, housing prices are still low in the 2008 housing bubble prices.
Oh well, because they have so much land and if they want to build more houses, they just built and built. Not like places in SF or Seattle, where we do not have land because we are surrounded by beautiful waters, so the only way to build is up and lots of condos are being build.
My neighbor’s house got sold recently after just 21 days in the market with multiple offers.

In short, enjoy the sunny summer and let make money.