The other day, I wrote a piece about the rapid rise in mortgage applications. I wrote about how that has slowed down the processing of mortgage applications, how it has contributed to a more positive bottom line for banks. I quoted Kevin Watters, head of mortgage originations at JP Morgan Chase. He said the bank would continue to hire aggressively to meet the demand. I suggested my readers look to this situation as an opportunity to find investments or trades. My writing inspired this response from a reader.
- So what are you recommending? JPM? Perhaps you should be suggesting to the banks a way of speeding up loan approval! Pretty vague report?
This column is not about me specifically recommending trades or investments. I might mention a stock I am looking at, a trade I am in, or a sector or stock that might offer opportunity. If you are looking for someone to give you specific recommendations, that ain’t me. My goal is to help traders and investors learn to help themselves become better traders and investors. I present facts, data, and opinion about markets and economies. I offer views on the fundamentals that make traders and investors successful. I point out the inadequacies of the financial media, financial pundits, and financial analysts, and I try to bring some clarity to the muddy picture these folks create. I also strongly push the notion that anyone who wants to be successful must learn to do his or her work. This last point is the reason I am vague. I don’t think it prudent to rely on anyone but yourself when you are working your money. Speaking of relying on others …
- I try to remain positive and focused in light of the current economic situation. Last night I came across some disturbing information. I must admit I was well aware of it, just thought we had more time. What truth do you see in the CME commodities exchange folding, along with the US dollar becoming worthless while basic necessities sky rocket, thus bringing civil war in the US and a major shift in life in America. Or maybe the correct question is: what possible realistic timeframe do you feel we are looking at for these terrible events to unfold? Ann Barnhardt is suggesting maybe 10 months or less!
Okay, steady as she goes. Calm and clarity are needed … First off, Ann Barnhardt is one of those wild-eyed wanderers shouting doom from the nearest hilltop, another charlatan making a living peddling fear. With calm and clarity, consider her words.
- “We’re seeing the complete disintegration of the financial system before our very eyes! It’s Soviet! It’s truly, truly Soviet!! You’ve got to get your money out of the financial system! Nothing is safe! Not just the futures markets, but the entire thing! Stocks, 401k, IRA, deposit accounts. GET YOUR MONEY OUT OR ELSE IT IS ALL GOING TO BE STOLEN FROM YOU! IT’S ALL A PONZI!!!”
Now, if Ms. Barnhardt’s words seem rational to you, I can offer nothing that will convince you otherwise. Perhaps, though, you should seriously consider the following. Seriously? Do you believe America is headed to civil war in less than 10 months, or any time for that matter? Seriously? Do you honestly believe the Chicago Mercantile Exchange (CME) is going to fold, say, any time in our lifetimes? Currently the US dollar underpins the entire global economy. Seriously? Are you suggesting the global economy is on the verge of complete collapse from a worthless US dollar? A “realistic timeframe” in this context is oxymoronic and, frankly, absurd.
Does anyone have an aspirin? Sometimes, my work is so taxing.
Trade in the day; Invest in your life …
