Direxion Daily Emrg Mrkts Bear 3X Shares (EDZ) (EDZ)

[NickC]

We are at the start of the next leg down of this current Magnified Bear Market: Anybody connecting the dots this way? It has been reported that one part of the segment that has been especially hard hit is the 50’s and older age group that were down-sized during the economic mess/collapse which started September 2008. It is my opinion that you have a huge number that can’t find a job (age making it harder) and have been relying on unemployment compensation and their portfolios for everyday expenses. This strategy may have been fine while the Stock Market was in a robust incline (December 2008 to January 2010). Now things are becoming quite different. As the Stock Market continues to head south (lower) so does the value of their Portfolio. Because there is an accentuated reliance on the Stock Market portfolio due to this unique situation, the product of the current down turn will be magnified: This large number of unemployed will now spend far less because of this new squeeze that has presented itself. Magnified snowball effect; Spending less is bad for the economy which makes portfolios go down further….. Who then spend less…. And so on!
Your Thoughts?