Shows how silly the stock market really is. How can a deal over such a small amount of money boost the stock market 10,000 points. MAKES NO SENSE.
A thing is worth what someone will pay for it. The most basic principle in economics. The stock market IS reality at any given time.
Over all stocks climb in time that is the important part to understand. Speculators react to small changes. i like Arthur Laffer though I the permanent change in the stock market will be far less then 10K. He might be right it could climb for a short time much higher.
Velocity of money?
Agreed. That kind of thing would end up making me nervous.
“...Shows how silly the stock market really is. How can a deal over such a small amount of money boost the stock market 10,000 points. MAKES NO SENSE.....”
I’ve been following it for a long, long time, and for the most part, it never has made any “sense”. IMHO, it’s primarily driven by greed & fear. Just the perceptions thereof is enough to cause a “stampede” for the “entrances” or the “exits”. Yes, there are investors that follow in-depth company analysis etc. and attempt to invest in the growth of solid companies for the long-term. But the day-to-day market: it’s all fear & greed...no reality, no common sense....at least none that I ever found.
I agree. It is nothing more than a casino. Case in point. Netflix. Surrounded by all sides by competitors but trades in 200s PE?
I’m more concerned with America’s debt and global debt. Some day, this things gonna pop. I don’t see how we can keep borrowing from countries that are up to their eyeballs in debt.
Furthermore, indefinite low interest rates give savers no safe haven for their funds. Raise rates...sink the economy with stiff rise in interest payments on the national debt.