Here is a trader talking rather candidly about how the markets will crash and how Goldman Sachs (and others) rule the World. Previously, we talked about the deep involvement of Goldman Sachs in the Greek debt. And as Greek defaults (most now agree they will) I have feeling we will be hearing once again about Credit Default Swaps, and Goldman betting against their own investors through hedging.
While I will not pretend to be a professional investor, my advice right now would be something like this...
Because we are in an unregulated boom and bust cycle, reminiscent of the times before the Great Depression, there are going to be a number of shocks to the system, and we will see a continuance of large swings in the markets. As I write today, the Dow Jones Industrial Average is at about 11,000. It crashed pretty hard last week, and if you bought stocks then, you could sell today and have made 5% or so in just a week's time. As Europe crashes, there will be additional shocks which are buying opportunites. Look for the Dow to drop below 10,500 or 10,000, and that is likely yet another opportunity. It also is quite possible we could see the Dow drop below 8,000, and that would be an even more excellent opportunity to invest in something like SCHB, a free ETF from Schwab.
So long as governments fail to get together and regulate, there will be a boom and bust cycle for some time. I don't like it, but I only write as an observer. These are dangerous times, and it is important to be watch and be aware of options. As the trader in the video predicts, there could be some massive losses of people's savings, and big firms like Goldman Sachs don't care. They are there to profit from opportunities, even if those opportunites are a result of manufactured fear or even purposeful manipulation of governments.