Posted on 07/29/2012 8:12:01 PM PDT by OneVike
For the life of me, I cannot explain to my wife why the stock market keeps doing so well. I keep telling her it should be tanking, but it keeps going strong. From everything I have ever understood, and firmly believe about economics, the stock market should be down to about 5000 or below, yet it isn't. I have heard many experts say that they are themselves baffled?
I could give all kinds of economic numbers from various key industries, along with numerous statistics pointing to the way Obama has indebted our grandchildren's grandchildren. I could also give economic information that shows almost every country in the world is an economic basket case from China to the European Union, yet the stock market keeps defying reality.
I keep wondering if Bernanke is pumping the stimulus money into the market to fool the masses that still think a great stock market equals a great economy. If that is the case, does anyone besides me expect the market to crash next year after Romney is sworn in?
Anyway, back to my vanity question.
WHY? WHY? WHY, is the stock market soaring when in reality is should be fighting to survive?
Probably the best bet is to go to ZeroHedge.com and read it for a few weeks.
It seems to follow the latest rumors regarding the european debt crisis and how they’re robbing Peter to pay Paul. IMHO this is a house of cards waiting for a tornado.
How much are bonds returning? <2%, therefore stocks are outperforming bonds right now.
Zimbabwe’s stock market soared during its hyperinflation/crash
These new highs, as far as I can see, are not widely confirmed, and are on low volume - but don’t fight the FED.
wads of cash in banksters hands because they no longer have any good investments to park them in. The government has seen to it that the US is a terrible investment and that money has no place to go.
Why?
"I have heard many experts say that they are themselves baffled?
These are folks that are deeply saddened that no one gives a flip about their pricing scheme.
"I could give all kinds of economic numbers from various key industries, along with numerous statistics pointing to the way Obama has indebted our grandchildren's grandchildren. I could also give economic information that shows almost every country in the world is an economic basket case from China to the European Union, yet the stock market keeps defying reality.
Reality is the real deal, not bags of feelings and data. Reality understands the data and acts accordingly, while at the same time ignoring the feelings and desires of those that play nothing more than an imaginary hand.
"I keep wondering if Bernanke is pumping the stimulus money into the market to fool the masses that still think a great stock market equals a great economy."
Bernanke isn't "pumping stimulus money". The market activity represents economic activity.
"If that is the case, does anyone besides me expect the market to crash next year after Romney is sworn in?"
Depends on what happens in the future. The only major economic problem that stands as a threat is forced participation in the healthcare "insurance" scheme.
"WHY? WHY? WHY, is the stock market soaring when in reality is should be fighting to survive?
Consider the fact that some folks do stuff, while others just feel what ought to be. The doers won't stop until they're dead.
You have several factors going on. 1. The new norm is the slow markets and businesses adapt to the market and start to make a profit again, even if the overall economy is in a downturn. 2. After the steep crash, people are starting to re-enter the market hoping for a turn around.
However, all is not as great as it appears. One thing to look at is the volume. Outside the blue chips, there isn't a lot of movement, especially on OTC market stocks. This means that small investors are dropping out and it is mostly institutional investors doing the trading. I've noticed this on a lot of OTC Pink Slip stocks I have. There are many days where you have virtually no trades on the stocks. I have one that is a supplier to AAPL so you would think it would do well, but it has very little attention at all in the market. It is just the institutions playing the big names.
This is also why investors sold hard in Fall of '08...they saw Obama and socialism coming. It was not Bush who caused it, it was Obama.
Now investors see lower taxes and a businessman about to take office...so the opposite of a crash is taking place.
If I were you, I would put some money in BEFORE Romney moves way ahead. That's what smart investors are doing now.
Dang..you beat me!
At least there is more than just me that believes this whole scenario is a giant manipulation.
My wife and I retired last year. We decided we could not chance the loss of our 401K’s and IRA’s because we cannot make up the loss of them again after losing so much in the fall of 2008 when we were still working. So we pulled all of our funds out of our market investments and bit the bullet on the taxes we owed. We still have inflation devaluing our cash to worry about and other shenanigans this money-grubbing government might employ to empty our wallets, but we will take our chances and protect our principle on our own.
We don’t need more growth at this stage in our lives. We need less loss of our capital. We took a big hunk of it and built a new home without a mortgage for retirement and the rest is hidden from view in one of our pastures on our homestead. We will hunker down and try to control our own destinies by weathering the storm in our own safe harbor. The stock markets and the banks be damned.
Heard that too
Now that is the one thing that keeps coming up, the volume is down.
So would I be correct in thinking that if no one trades much, but all of a sudden someone involved with the institutional investors makes a few trades at the end of the day with some blue chippers, the stock market then goes up when the rest of the stock market has not moved or even worse dropped.
So sure the blue chippers, which is what is basically reported for the overall markets losses and gains, may show an increase. However, as you say the overall volume is way down.
I still question the whole reason they changed the makeup of what companies are used to track the DOW.
If the old blues chippers where still the basis for the stock market rating, I wonder if we would get a better idea of what it really is.
The American stock market today is not about manufaturing in the domestic American economy. It is about American stock holders and name only American companies, investing in and producing their profits abroad.
The American stock market cheers on Apple, Microsoft &c, making their money by using cheap slave labor in China and other countries.
Besides climbing that worry wall, the market buys on the rumor, sells on the news.
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