US Stocks Down 15% in 2 Weeks

[Fmr. Pres. Duke]

I'm about at the point where I was in 2008 in that I usually avoid CNBC or any other financial news network during the day. As it stands, we will continue to see the market deteriorate as long as our fiscal state remains the same. There's no way we can actually grow our economy when 102% of our GDP is going to pay off the debt. The looming possibility that S&P downgrades our debt rating again will be another shock to the system.

If I was smart, I would've cashed out my stocks today, because this is probably the last time we'll see a rally like this in a while.

[Fmr. Pres. Duke]

Amazing we're off 2000 points from its peak a few weeks ago.

[Fmr. Pres. Duke]

Strongly considering converting my portfolio to cash at the end of the day.

[Fmr. Pres. Duke]

Strongly considering converting my portfolio to cash at the end of the day.

Learn to always have at least 20% of your portfolio in bonds, and 20% in equities, and play with the percentages in between, but don't make big risk exposure  moves without good fundamental reasons, Dukie. That is one old man's advice. I don't think there are good fundamental reasons for the market to seriously tank downward from here myself by the way.

Companies are making money. I think most of it is psychological at the moment. I've reduced my holdings to a few stocks that are sound companies (AAPL/DPZ//MO/T) so I've been outperforming the current trend. I suppose the wild swings of the week have made me paranoid. I remember wanting to do the same thing just prior to the collapse in 2008. I think we're a bit more stable than that now.

[Fmr. Pres. Duke]

Ah, the inflation rate has been positive since 2009.

If you believe that, we're probably speaking different languages, J.J.  Actually it is rather funny how conservatives tend to doubt a lot of government economic statistics, but are always eager and willing to believe in 'inflation'.  We're having deflation, J.J., as bond yields show.  Just like Japan all over again.

You are talking about lower interest rates, not deflation.  It is cheaper to borrow money.  People are not borrowing it.

Banks also don't want to lend it out. My father is an engineer and builders who owe him money cannot borrow enough money to pay him. Perhaps they had already taken out too much, I don't know, but from what I'm hearing, banks aren't exactly wanting to make loans.