patrick.net

No, the stock market is invincible now nothing can stop it..except kryptonite!?

I'm eagerly anticipating a correction in all markets. QE has been amazing in that no amount of bad news seems to be able to derail markets. It doesn't matter how bad the sales or unemployment numbers come in. Hell, it doesn't matter when an earthquake hits and wipes out one of the largest economic powers in the world. It doesn't matter if there will be a nuclear meltdown. Nothing stops the market when funny money is in play. This is what Ludwig Mises referred to as the "crack up boom".

If once public opinion is convinced that the increase in the quantity of money will continue and never come to an end, and that consequently the prices of all commodities and services will not cease to rise, everybody becomes eager to buy as much as possible and to restrict his cash holding to a minimum size. For under these circumstances the regular costs incurred by holding cash are increased by the losses caused by the progressive fall in purchasing power. The advantages of holding cash must be paid for by sacrifices which are deemed unreasonably burdensome. This phenomenon was, in the great European inflations of the 'twenties, called flight into real goods (Flucht in die Sachwerte) or crack-up boom (Katastrophenhausse).

-Ludwig von Mises

theoakman says

This is what Ludwig Mises referred to as the “crack up boom”.

If you believe we have that (as in "Great European inflations of the twenties" per your quote), there will never be a significant market correction in terms of existing currency, as in that scenario the currency goes to zero value.

Fisk says

theoakman says

This is what Ludwig Mises referred to as the “crack up boom”.

If you believe we have that (as in “Great European inflations of the twenties” per your quote), there will never be a significant market correction in terms of existing currency, as in that scenario the currency goes to zero value.

Well, I'm not going to call it one way or another. I have no clue what direction the market is going to move. I've been content to sit on my mining stocks, gold/silver, oil, and potash plays. Sure looks like the crack up boom is in effect. A pullback would surely prove that otherwise.

From my understanding investing into retail like companies is a bad investment long term.

Could the rising price of oil be the kryptonite that stops this supermarket?

http://finance.yahoo.com/news/Rising-oil-prices-beginning-apf-1311732829.html