|
Posted on 11/26/2013 3:50:26 PM PST by whitedog57
What is driving the stock market to dizzying heights? Try stock margin accounts and Fed Monetary easing.
Here is a chart of NYSE Member Firms Debit Balances in Margin Accounts and the Standard and Poor’s Index.
margindebtspx
And here is a chart of the SPX against The Fed’s Balance Sheet size.
spxfedbal
You must admit, there seems to be a pattern here. Particularly since real median household income seems to be shrinking (although house prices are rising).
cs20realmedhinc
Margin accounts + easy Fed money = bubbles.
Where?
We should thank someone for this impending disaster?
seriously?
I stopped believing in Santa Clause and the stock market a long time ago. When the fairy dust from the Fed is cut off, the stock market is going crash worse than Humpty Dumpty
The Dow will hit 10,000 before it hits 20,000
Indeed.
Every day you steal some charts and try to direct traffic to your blog.
|
It happened with the defeat of cap and trade, gun control, the extension of the Bush tax cuts and now Obamacare.
As Obama gets weaker the markets get stronger.
Not sure why people are always shocked when the DJIA hits new highs.
The DJIA will always have a strong upward bias built in, as poor performing stocks are taken out of the index periodically and healthy, strong ones replace them. It happens this way but not the other way around.
That being known, the only direction of the market is up over time.
as poor performing stocks are taken out of the index periodically and healthy, strong ones replace them.
Fewer stocks was mentioned on one of the FOX business shows as a cause. The other factor mentioned is poor return on bonds.
Ah, humblegunner. Free Republic’s self-appointed hall monitor is back on duty, protecting us children from those evil blogs! I can’t imagine what evil might befall us without your selfless devotion to our safety...
I am at 99% high growth stock in my 401k, Investing for 7 years. I compare it to a 30yr employee who is 75% bonds. My plan is nearly equal to half his account.
Why jump?
So when Navistar is removed in 1991, after falling 95% from it's peak, and replaced by a stock that performed better, that's an upward bias?
What about when GM goes bankrupt and is removed in 2009 and replaced by Cisco, that's an upward bias?
If they removed GM when it was at $50 and put in a stock that is about to take off, you might have a point. Pulling a stock out after it drops below $1 and then replacing it with a stock that had a better performance over the last few years might give it a downward bias.
What do you think?
Bump for later
Your safety has nothing to do with it.
Were I concerned with such, I’d post to you rather than to misbehaving bloggers.
poor return on bonds.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
