All the news channels and their stock market cheerleaders are abuzz with the wild swings in the stock markets around the world. The United States stock markets, and the Dow in particular, have not been immune to the heavy selling and violent swings. I recently wrote about tremors in the market leading up to last weekend and then the ensuing thousand point drop when the market opened the next Monday. I also wrote about the Presidents Working Group, or the PWG, and the reason this market manipulating force was created back in 1987 after Black Monday.
So, knowing what I know about the PWG and its responsibilities, intentions and pockets I was not surprised when on Tuesday the Dow started the day with a strong rally. What I did find interesting however was it such a strong selloff happened at the end of the day, that the Dow ended up 200 points lower than it was at the day’s opening level.
What I also found very interesting, is how all of the writers that cover the markets and business news as well as the talking heads on CNBC and Fox News and the like were rallying around and cheering on the markets and financial institutions that are in the throes of violent financial convulsions. Halfway through Tuesday I was reading articles about how strong the comeback in the market was and how buying opportunities were disappearing. Below that article would be another article about how gold was no longer really a hedge against market swings and really hadn’t been for some time now. The contorted views and strangely odd positions that these writers and reporters must take to make what they’re seeing and writing about the in stock market amazes me.
Part of the job of the precious metal specialist or a senior analyst at ITM Trading, is to constantly monitor market news and conditions and relay that information and explain its meaning and value to the clients and potential clients of ITM Trading. ITM Trading functions just as much as a resource of market and currency information as it does a buyer and seller of gold coins and bars, silver coins and bars, and rare American gold coins (all rare American gold coins sold by ITM Trading are certified by either PCGS or NGC).
And, during my time on the trading floor at ITM Trading I quickly realized that CNBC in particular was just network of stock market cheerleaders funded by and revolving around corporate giants and banking entities. The sole existence of many of these market and “news” programs is to act as a cheerleader for businesses in markets and their financial conquests and products. And, every now and again these sources slip in the obligatory hit piece on gold, especially physical gold and the very thought of even holding gold bars or holding gold coins as well outside of their banking or investment systems.
However, it is not uncommon to see a hit piece on gold produced by stock market cheerleaders and then see the next commercial or news piece touting buying into an ETF (electronically traded fund) which is actually a system where you pitch-in and by somebody else a room full of gold bars and gold coins and in exchange you either accept gains or losses accrued while you hold your shares of the fund in Federal Reserve notes.
I should take a moment to note that ITM Trading does not recommend buying into ETF funds for the simple reason that these investment funds do not diversify you out of the dollar or into physical tangible wealth, the same way that buying gold bars and buying gold coins and holding them safely nearby does.
But back to the market coverage both written and spoken surrounding what is currently happening not just in the United States but around the world. If you look closely I think what you will find is that the market coverage provided by “professionals and authorities” that make their living supplying the market coverage will start to appear thin and transparent after a while. The Stock Market Cheerleader rouse wears thin after awhile.
Instead of carrying on and frothing about what is happening at the very moment and how buying into one company is an opportunity to profit when the stock goes up, and how buying into another company to profit when the stock goes down, perhaps what responsible journalism and market reporting would focus on is why the things that are happening are happening. When markets the size of the Dow swing 1000 points in a day, or much worse yet, 1000 points at opening, the forces that are manifesting these swings are huge and shouldn’t be played off.
When you rely solely upon cable TV and broadcast news for your market intelligence, you need to realize you that you are just hearing another cheer routine performed by a stock market cheerleader.
I recall from the few high school and college games that I’ve been to that the cheerleaders always cheer harder for the team when the team is down, and in essence that is the job of a cheerleader, to cheer when the team is down. In fact we often hear the same “cheers” over and over again. You may recognize some of them:
market correction, fat finger mistake, trading glitch, market down on disappointing news, markets down on poor job growth, markets didn’t respond well to international tensions, markets recede on news of possible interest rate hike, markets recede on news of possible interest rate lowering, banking sector stocks drop on news of more possible regulation, etc. etc. etc.
If you really want to know about the forces that move these stock markets and make people billions while evaporating trillions, then you need to look at documentaries that do a keen job of dissecting and explaining what really happens in the markets and what really makes them. I might suggest the documentaries “Inside Job” hosted by Matt Damon which shows you how the banking and stock market collapse of 2007 through 2009 happened, as well as the documentary “The Smartest Guys in the Room ” which documents the Enron collapse.
If you have watched either these documentaries on the stock market or energy scandals, and you do not own gold and silver, then may I politely suggest that you rethink your stance and contact ITM Trading. If you have not watched either these documentaries, then may I politely suggest that you do so and then contact ITM Trading. You can reach a precious metals consultant or a senior analyst Monday through Friday from 8 AM to 5 PM Arizona time at 1.888.OWN.GOLD.