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I'm got whiplash I don't know about -- -- the stock market on a heck of a ride lately the Dow up today one point giant triple digits.
On positive housing -- an encouraging economic news out of -- this after all three indices saw their biggest one day declines.
Ric Edelman CEO about a month financial services joins me now with his thoughts on whether -- sit this -- -- write it out.
Hi this is nerve wracking for individual investors Rick I'm sure you hear this term -- the folks who listened to your radio show I would be telling people do right now.
Get excited and this is the beginning of the next leg of a major sustained long term bull market.
We've been talking about this for years that it was coming and here we are and I don't want -- in the -- by sitting on the sidelines.
I love that I love the optimism.
Still you know I can talk to people out on the street and and they will think that the market isn't doing anything at all it's astonishing to me.
How -- -- so many just average Americans are when it comes to the stock market what's going on the people are open to hearing.
-- right Jerry gets the Rodney Dangerfield market gets no respect -- people are living in the past.
-- -- Remembering with -- -- law.
The horrific losses they suffered in 2008.
And they failed to realize that that was five years ago get a grip people that's ancient history by Wall Street standards they yeah.
And the market has doubled in value.
You say that there's such a change in sentiment that seems to be borrowing figures starting to see that tell me -- that.
Well for the -- Ever since 2008 from 2008 through the end of last year we saw net outflows of the stock market stocks and stock mutual funds people were selling them.
And moving the money to cash and a bond funds.
But suddenly -- -- somebody flicked the light switch starting the beginning of this year we're now seeing massive inflows into the stock market.
People -- realizing hey you know what the world didn't come to an -- the currency wasn't worthless the United States didn't collapse.
Put my hands were -- wrong.
And -- -- years older I'm quite -- closer to my retirement I better get on with it and people are now.
Coming back into the market there's over two trillion dollars in cash and as that money comes back into the market it's -- across stock prices to skyrocket.
Now gonna play devil's advocate with the air because I know some of these people who are naysayers and I hear them and I understand their concerns insider trading.
With with companies like Procter & Gamble which he would never expect insider trading rampant.
Flash crash and explain moves in the market that are crazy -- 3% 70%.
They volume on the NYSE high frequency traders he's crazy guys.
Who are I think there's not know like kicking into the computer programs that they're running.
Willy Nilly the way they bet you don't know and they are running the stock markets why should I get involved right now.
Because none of that has anything to do with your long term investment strategy -- the very first insider trading case.
Occurred in 1792.
And Alexander Hamilton to absorb the state more deaths from the revolutionary war.
The very first IPO was a victim of the very first insider trading case so watched.
As far as the ERP -- G kind of nonsense that's going on the stuff happens all the time.
Flash try now -- that's -- 2006.
It last -- in one day actually ten minutes that's the difference between the waves of the ocean and that -- of the ocean.
Well okay -- isn't really -- this is a good point if you're in for the long haul.
Maybe you have time to wait out the flash crash maybe you can have a right patients not to -- -- you know to to walk past move past the insider trades but.
Yeah right all this excitement over this line in the sand of 141000 -- only back to where we work five years ago.
You know I -- the murder was well I think that's what's disappointing about it right -- disappointing as you know what I -- here before people.
Let's turn to move higher than that's.
And we well I mean we just have to recognize that the market doesn't move like a bank CB it doesn't go to straight Linear aren't upwards.
It goes up this goes down a point is over history it goes up a lot more than it goes down.
Well and -- let's -- got there I am a big fan of stocks but I know a lot of people at their very nervous -- get a little extra coming on tonight appreciate your time.
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