Dow Closes Up 170 on Fed Chief Appointment

AP via Yahoo ^ | 10/24/05 | Christopher Wang

[photodawg]

. I was under the impression that it was going to fall no matter who got picked as the market has this weird underlying assumption that Greenspan was somehow making the economy levitate as if by magic
_____________________________________________________

The market doesn't have that assumption. It just abhors uncertainty. Greenspan is a known quantity, so is Ben Bernanke. The market doesn't seem to be buying the all is roses scenario judging by its performance recently, what's happening this past few days is that some great earnings reports have come in, and oil prices are stabilizing. Money flows to money.

[Snardius]

All I know is the markets were jittery because this guy is supposedly an inflation dove. That's not good for the stock market in the long run.

Some would argue that a modest amount of inflation is good for stock prices. Since Mr. B is supposedly a fan of an "inflation target" some have concluded he will accept some inflation as opposed to Greenspan's no-tolerance approach.

The markets are jittery because that is their natural state. Bull markets climb a wall of worry.

[groanup]

Well, since the bond and currency markets are vastly larger than the stock market, I'll take my cue from them for now.

[yoe]

This President now has close to a royal flush with Rice, Bolton, Goss, Rumsfeld, John Roberts on the SC and now Ben Bernanke. A remarkable assemblage to say the least. George Bush is as wise a horse trader as ever was. Those who fight over single issues will never be happy…your state is the place to start on single issues – not the White House.

[Steven W.]

oil just started to breach the $60 per barrel level - once it clears technical support, Look Out Below!

[Steven W.]

the currency markets

?????? You might as well run your life by playing pin the tail on the donkey each day when you get up ROFLMAO

[Steven W.]

All I know is the markets were jittery because this guy is supposedly an inflation dove. That's not good for the stock market in the long run.

What are you talking about? Stocks - ie shares of companies with an ability to increase earnings - are the only equitites with the ability to sustain themselves above & beyond inflation and having been doing it for decade after decade.

[Snardius]

Well, since the bond and currency markets are vastly larger than the stock market, I'll take my cue from them for now.

I don't think size has anything to do with it. It's about the flow of money. If equities are coming back into favor with investors because the new Fed chief's policy is thought to be friendly to equities, money will flow from bonds to stocks.

[groanup]

You want to try posting that again in something similar to english?

[RightWhale]

Seems like Wall Street has responded to a choice that won't take effect for a while and when it does take effect who knows what the effect would be. Seems like a mindless thing to do.

[Snardius]

You want to try posting that again in something similar to english?

I think he's trying to say that if you see a group of people and each one has his hand in the someone else's wallet pocket, you're looking at a crowd of currency traders.

[Snardius]

Seems like Wall Street has responded to a choice that won't take effect for a while and when it does take effect who knows what the effect would be.

The markets always trade six months ahead. Buy on the rumor, sell on the news.

[Willie Green]

Did I say $1.65 is normal for this day and age with China and India and the US creating larger demand by the day?

I don't know if it's "normal" or not.
But that's what it was when Dubya took office...
so that's what it has to go below before he can claim any credit.

[unixfox]

I have noticed how gas has fallen $0.40/gallon and the press hasn't said anything about it.

The MSM doesn't report good news, only bad news about the President or Republicans.

[3niner]

I don't know much about the new Fed chief but if you're looking for investor proxies on him look no further than the bond and currency markets. Bonds and the dollar got slammed on this news.

Well, DUH.

When a lot of money moves from bonds into stocks, the stock market rises and the bond market falls. This is a sign of economic optimism. The reverse is a sign of economic pessimism.

BAMM! Stomped another commie!

[Afronaut]

Was Ben Bernanke the Presidents first pick for Fed Chief? I heard Bushe's accountant turned it down. Does Ben Bernanke go to Church? Is he a Pit bull in size 9 1/2 shoes? Who is this stranger?

Good luck to Mr. Bernanke.

[RightWhale]

Buy on the rumor, sell on the news

Today would have been a good day to sell. Seems most investors were buying. But, I am still marooned on Cramer Island and waiting for a bigger boat. What the heck, no hurry, plenty of coconuts and mangoes, the island isn't sinking, yet.

[Afronaut]

" BAMM! Stomped another commie!"

People who know more than you are Commies?

[pissant]

I'm not the one saying he should get credit. I'm just saying the media pins the blame for higher prices, and they'll never give corresponding credit to a GOP president for good news. Hells bells, Willie, the MSM still does NOT credit Reagan for doing anything that helped rebuild the American economy after a woeful decade.

I would say that $1.65 plus inflation over the last 5 years would be a better barometer of success, regardless of who is responsible, than the same price it was when he took office. And if Bush has his way, and its looking more likely, we'll be extracting more oil from the ANWR and the ocean. Good things, don't you think?

[BOBTHENAILER]

"I have noticed how gas has fallen $0.40/gallon and the press hasn't said anything about it."

The price gouging whiners will NEVER understand simple supply/demand ecnomics.