This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Where Will You Be When The Party's Over?

Stocks in this article: DLTNXKMPMOPAATVFIIXVZ

They did go to the party, which was held at a house way out on Long Island, with their friend Elaine. But George hooked-up with a woman, took the car, and left Jerry and Elaine stranded. They stayed too long and had to call Kramer to rescue them, but he got lost and Jerry and Elaine spent hours straining to make small talk with their tired and exasperated hosts. Jerry and Elaine were the last ones to leave. It was a disaster.

Moral of the story: Know when it’s time to leave the party, and by what means.

For you, what’s required for a good stock market party? Does it mean simply having an endless, raucous time, with no thought of how or when the gaiety will end? Or does enjoying the party also involve knowing when it’s time to go home and how you’re going to get there?

Okay, this is where you say, “Get out of here, party pooper.” And I respond, “Oh, I’ve already left.”

There’s too much evidence to deny that, as DoubleLine investment chief Jeffrey Gundlach has said, this is all going to end badly. That doesn’t mean it’s going to necessarily end soon - the point is that no one knows when it’s going to end. And it’s not completely dependent upon a change in Fed policy. Any political incident (North Korea, Syria), financial accident (Cyprus, Italy), or natural disaster (a New York City hurricane, Japan tsunami) could trigger a steep market fall.

The fact is that today’s record-breaking stock market is artificially inflated and therefore quite tenuous. On CNBC a couple of weeks ago, venerable investor Jim Rogers expressed unrepentant skepticism about today’s lofty stock prices that are mostly the result of central banks’ easy money policies. (Think that ubiquitous Interactive Brokers commercial with the columned edifices relentlessly churning out cash upon the world.) “If you give me a trillion dollars,” Rogers said, “I’ll show you a good time, too.”

Pimco’s Bill Gross broadened that theme in his April epistle, crediting the investing fame of Warren Buffett, George Soros and himself in part to the happenstance of living in a favorable “epoch.” But, he wonders, what if today’s epoch were to change? “What if perpetual credit expansion and its fertilization of asset prices and returns are substantially altered?” Gross asks.

The party goes on for now, but I’m not having as good a time as I was awhile ago. I guess I’m sobering up. And I’m not going to drink any more at this party. I don’t know when the party will end, but it will end. And I want to make sure I know how I’m getting home.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs