Two Weeks Ago, the World Was Ending

Two weeks ago the world was ending. We had dropped below 12,746, the Fib retracement line, and all the indicators (that we chose to read to Michelle Bachmann style) pointed us to massive downsides on Greek debt, the end of the Euro, ad nauseum.

We at OEX and BCO were buying calls on the OEX and adding to our longer term Blue Chip calls, and ignoring the doomsayers. To be fair to those that promote conspiracy and see “the inevitable occurring” because we have sinned (what most doomsayers choose to be, we published an excellent article by Porter Stanberry, owner and purveyor of many different financial newsletters, and very well regarded.

This leads to an Advanced Mentoring student, my friend MP, who suffers from the pain that “all this sinning” must lead us to the end of the world, and all that he has studied proves we are on the long lost track.

An excellent example of illogical logic, the basis of much thinking:

*Fact: no paper currency has ever held up in the world. All have fallen and collapsed. This is absolutely true.

*Alternative fact, often forgotten: Nothing else (precious metal, diamonds, or beads) has held up either. Every form of value we have created has been destroyed at one time of another.

So, here’s MP on Friday:

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“Also.How much stock do you put into that Porter Stansberry article? The doom and gloom guy? Talking about the Euro not being here in 6 months and that we are gonna have a worse crash than we did in 2008?

And lastly...you keep mentioning silver being manipulate in the "short term" b/c of solar panels.

What do you mean "short term?" 1-2 years? Eventually when and if these currencies collapse...there is no way "they" are gonna keep silver down...people will buy it and take physical delivery of it...

The markets won't be able to stop it.that's just what I think”

And from Floyd in return:

You create conspiracy and conjecture. You are assuming many things

1. Nothing had changed when the market dropped a 1000 points, so why would you think it would change when the market went up?

2. We own a MOAR basket that owns Italy and Spain. These were the worst performing ETF’s of 2010 and we bought them with the two top performers. The world will not let Italy and Spain disintegrate. Here’s why: If you have been to Newark or Trenton, NJ you might agree that they are sad blights of landscape on our society. Italy is my favorite country in the world; filled with great fashion, true history, great food and people. Something will change

3. Nothing is legit. The drop wasn't legit; it's just the cycle of the market. We seem to believe the negative in the U.S right now, but not the positive

4. The experts have no idea what is going to occur in one month. The IMF guy that was in trouble for the sex thing; I’ll bet he's the next President of France and the woman put in IMF is to support him. The experts don't say this. It’s got a high likelihood

Read experts, not papers, not TV. Intellectual thinking helps one through the “fuzz of inarticulate journalism”. And the journalists are NOT at fault. They report what they see, and Murdoch tells them what they can print or announce. This you should be worried about.