RealDealPolitics.com

The stock market is up this year? You’ve got to be kidding me.

Early last year, I saw the writing on the wall. The economy was starting to dive, which is never good for the incumbent party in the White House. Many voters would soon turn to democrats to solve the economic problems, which is never a good plan. These were the same democrats that caused most of the economic problems, by the way.

I knew intuitively that Hillary or Obama would be the next president, and it didn’t much matter. With control of both the White House and Congress, it wouldn’t take them long to tax and spend as much as possible, both of which do nothing but harm to the economy.

In January 2008, I pulled 75% of my retirement account out of the mutual fund market and placed it into a fixed income fund. In March, the unwinnable candidate Mccain had locked up the GOP nomination. By June, I had it all in fixed income, while most others continued to hold out some irrational hope that the stock market would suddenly get better.

The result: I protected about 90% of my retirement account, while others were only able to maintain only 50-70% of their funds. I was right about it last year, and I’m right about it now.

It’s hard to believe that history is already repeating a year later. The stock market is now being driven by false hope and empty promises, and has actually rebounded to where it was at the beginning of the year. But this market can not possibly sustain growth for an entire year.

Look at the major economic indicators:

Unemployment rate: up to 9.6% from 6% a year ago. Hundreds of thousands of jobs lost every month

GDP: dove -4% last quarter and has been in negative territory all year, after years of positive growth

Wealth: Personal family wealth decreased by $16 trillion from June 2007 to March 2009

Housing: Foreclosure rates have doubled over the past year, despite the bailout plans

Credit cards: Defaults have also doubled over the past year

Alright, so more people are losing their jobs, losing their homes, losing their businesses, defaulting on loans, and in general losing their money. How is the stock market increasing?

Look around your hometown. Have you ever seen more houses for sale as there are now? How many small businesses have closed their doors? I’ve been traveling, and I see them in every town, door after door of long time mom-and-pop shops, closed.

Perhaps the people that still have some money are putting it into stocks hoping some kind of get-rich-quick scheme will get them out of their current debt. The ultra-rich and criminal fund managers are happily taking people’s money and pocketing lots of it while allocating investments in stocks that will certainly take a nose-dive any day now. They’re not getting my money, that’s for sure.

Another idea is the counterintuitive: Warren Buffett and other uber-rich investors have made their money off buying when everyone else is selling. Perhaps this small percentage of investors that have a large percentage of the wealth are driving the bubble right now. Fine, let them win or lose their own money. They don’t need yours.

The United States economy is in dire straits right now. Keep in mind that the Obama administration has increased the deficit by over a trillion dollars during his first 6 months in office. They are also on record to “let the Bush tax cuts expire.” This means that in 2010, they will raise taxes on people that pay them. 2010 is not far off.

If all the major economic indicators are pointing in the same direction except for one, which do you believe? Clearly, the stock market is not following the rest of the economy right now. Therefore, it must be an aberration.

The important aspect to remember about the stock market is that it is heavily dependent on the economy as a whole. Growth of business, jobs, wages, and housing is what causes real growth of the stock market. If the other growth factors are not present, then the stock market can not sustain growth.

In fact, what we have now is the opposite: destruction of businesses, jobs, wages, and housing. Therefore the stock market can not possibly continue on an upward trend for very long. It may take the official announcement of increased income taxes next year for the bubble to pop, or it may be before then.

If you were one of those hopeful investors that kept your money in the market, figuring you couldn’t sell low, and you were getting a good bargain, get it out now while you have recovered what you had at the beginning of the year. It’s all downhill from here.

The economy will continue to tank until the communists running the government are out of office. It could be during next year’s election that we eradicate most of these big-government fascists in Congress, which will help. In mid 2011, real economic growth may be possible again, but more likely it won’t be until late 2012 when the chief executive communist is voted out of the White House.

Communists have one major purpose: to destroy the wealth of the working and business classes, and keep that wealth for themselves. They are doing a damn good job of it. But we will survive Obama’s communist agenda, if we manage our money wisely.

Bottom line: this stock market is doomed for the near term. But the good news is that you got some of your money back if you kept it in the markets last year. If you did, take your money and run, and hide it somewhere that the commies can’t get at it. Plan on reinvesting once capitalists run the country again.