- I got out of the stock market a year ago, feeling that a severe drop was coming.
- The Dow reached a record high of 16,577 on the last day of last year.
- The jump was 27% for the year, the largest annual increase since 1996.
- NASDAQ closed at the end of the year at its highest level in 13 years, jumping 38% for the year.
- Well, I was wrong, as the Dow kept increasing...until this past week. It is at 17,213, down 67 for the day, at the time of this writing.
- But, I still think a devastating fall is coming, perhaps next year.
- Only then will I return.
- Oh, I might add that I also wanted this drop because the apartment I donated to the University of Hawaii will provide an endowment that depends on the performance of the stock market, not unlike any personal investment. It is still for sale, and I hope won't sell until the market tanks.
- The wealth gap between minorities and whites has increased. This means there could be more street protests and violence. For example:
- Average median net worth of white households in 2013 was $141,900
- For black households--$11,000
- The factor is 14.
- By the way, this factor in 1989 was 17, so it has been worse in the past.
- In 2007, it was white $192,500 and black $19,200, or a factor of 10. What the article did not even comment on was that both have significantly DROPPED....DROPPED over the past six years. Hispanic? 2007 = $23,000 and 2013 = $13,700, also a crushing drop.
- The median net worth of households was $135,700 in 2007, sunk to $82,300 in 2010 and even further to $81,400 last year.
Today, France's CAC lost 2.5%, Germany's DAX dropped 2.7% and UK's FTSE down 1.9%. Last week the Euro Stoxx 50 sunk 6%, the biggest drop since August 2011. Certainly, Europe continues to be a basket case, and Greece, Italy and a few other counties are on the verge of bankruptcy.
Senator Chuck Schumer has called for a probe. Airlines are saying this is not collusion, but just good business sense. Hey, this is is the USA! We have a free market, which is doing fabulously well today.
I had a sunset dinner tonight on my lanai, and the view was breathtaking: