NO ONE IS FAZED...

I read an article today about how markets could keep going higher even as sentiments become bearish.  The reasoning is that there are no catalyst to turn the markets down.  That statement is totally false.  There are always potential catalysts, but the question everyone should ask themselves is...

- Will I be able to spot this CATALYST?
The Answer.. NO, 99.9% guaranteed you won't.  Someone or everyone will have their own reasoning as to why the markets turned, but by then the markets have left you in the dust and have emptied your pockets. 

The next idea investors have is that they believe that they can get out in time when their analysis tells them to.  They don't consider that when the crash happens the reaction time becomes a slow motion process and before you know it its down 20% and your still deciding at which rally point to get your money out, only to find out that there is no rally to be had.

There is also this fact that when an investor gets so used to the trend of the markets, it gets hard to break that habit.  The trend we are at right now has been trending up since March of 2009 and all the way up investors non-pro and pro have been on a wall of worry.  Want to test this theory?  Just look at the performance of Hedge Funds for the past 2 - 3 years.. Awful...  This time though when the markets pull back, they will have ingrained in their minds that markets will rally again.  I'm sure it will, but on a bear market it will more likely be far down before it rallies again.  This is where that term "DONT CATCH A FALLING KNIFE" comes from.  People need that hard experience to wake themselves up, but this is not something where you can just pick yourself up and dust yourself off and start again.  You will need capital when that day comes.

Finally a CRASH is a CRASH because no one anticipates it.  If everyone did then everyone would make money in this industry.  When there is no BID, and markets can only hear the crickets, who do you sell to? Oh, but you have stops.  Stops get filled at the next BID level. So if your Stop is at 80 and the stock has its highest bid at 40.. that's where you get filled brother, and you just lost 50% of your asset.

So again, do you think you can get out in time?  Will you have some DUMB investor rescue the day by buying your stock at your current level?

The moment the FED cuts back on their buying or "BernanQE" decides to stop QE altogether, everyone will be running for the exits, not just you. It's like a small funnel with a waterfall pouring over it.  Everyone will get trampled on the way out.

For the article I speak of CLICK HERE.

-Margins at all time high
-Prices are parabolic
-Fed will not let markets fall and will keep the tap on
-Housing is at its cheapest and an opportunity of a lifetime that is passing you by
-Student debt and unemployment at its highest
-Rates are so low why not take advantage now
-Forget the DEBT CEILING.. No one remembers it.
-Sequester.. What Sequester?
-M&A mania
-Start-up Bandwagoneer

All the facts above mentioned, yet markets are not overvalued. In fact it is at its lowest yet.
You don't need to be contrarian, you just need to have common sense.

GLTA.