Dow turns positive, erases a 600-point drop

CNBC ^ | December 27, 2018 | Fred Imbert

[dsrtsage]

But the democrats, media, and the fed are conspiring sooooo hard to crash the economy

[Starboard]

Yet it allocates capital better than any other system since the Dawn of Mankind.

****************

Not really. The Feds obsession with suppressing interest rates for a prolonged period has caused unhealthy distortions in the economy. Cheap money does not lead to proper allocation of capital. We are about to see the consequences of QE and the Fed’s attemtps to unwind its whopping $4 trillion balance sheet.

[abb]

I was referring to Free Markets in the classical sense. Human animals just cannot resist trying to tinker with markets in an effort to make them more “fair.”

Of course everyone has their own definition of that term.

[umgud]

yep

[hadaclueonce]

Killer Joe wept.

[Nifster]

True indeed.

Patience is the key

[Parley Baer]

“The strength of the Trump economy is fighting off the dark forces trying to drag the DOW down for political advantage.
But the battle will rage on.”

I think you are on to something.

[Starboard]

Human animals just cannot resist trying to tinker with markets in an effort to make them more “fair.”

************

Well said. Emotional and political considerations seem to drive humans to think they can force the “righteous” outcomes they desire.

Its interesting that the Fed has tinkered with (raised) interest rates four times this year and the 10YT has fallen steadily since early November. The opposite of what they wanted.

[Dave W]

Yes! You succinctly and accurately stated what is going on. Thank you.

[Sam Gamgee]

Not really. All that capital going into industries that produce nothing - like brokerages and banking.

[Gasshog]

Just stay long, and don’t worry.

Unless the S&P 500 weekly chart falls below its 200 day EMA.

It did that Christmas Eve, but reversed before the close. Whew.

[xkaydet65]

I feel computer trading should be banned. Too much chance of hacking and even without that, computers making trades based on their programming may cause uncontrolled buys and sales. Especially given the speed at which they move. Even a shouting trader can take the time to ask,” should I do this?”

[terycarl]

That makes me wonder of ANY of these people know what the hell they are doing.....frightening!!!!!

[Mr Ramsbotham]

I think the term is "top". Not unusual or "unexpected" given the cyclical nature of the market and the fed's quantitive paining. They could only get away with it in a relatively strong economy, which President Trump's hand at the wheel ensures.

True, and that's why I'm not more concerned than I need be. The economy is strong, a consequence of low energy prices and tax cuts. I understand where the Fed is coming from. They're going by the old paradigm that a strong economy runs the risk of "overheating" and inflation, and trying to head it off. Two things: (1) loose fiscal policy is being absorbed by the world economy, not just the U.S. economy; and (2) if you're going to "ease" your way into a loose money policy, you've got to "ease" as well when you tighten it up. There are too many potential shocks right now.

[afterhoursarmory]

Algo’s; that is what the “stock market” is anymore.
AI doing the trading and humans reporting like they have a clue.

[central_va]

Import tariffs and low interest rates have helped the economy immensely, also.

[Red in Blue PA]

I don’t mind volatility, as long as it is the upward kind.

[Repeal 16-17]

It’s schizoid.

I was thinking bipolar. Every bit of good news causes the market to skyrocket, while every bit of bad news causes it to plummet. The traders need to get a hold of themselves.

[Mr Ramsbotham]

Import tariffs and low interest rates have helped the economy immensely, also.

Yes, but artificially low interest rates are a pernicious poison that eventually will do an economy in. And as for tariffs, most new brooms sweep pretty clean, but in the long run, they're killers. I don't mind them being used as leverage to get better trade deals (although the best trade deal is perfectly free trade) but as "protection" they only protect producers and consumers from low prices.

[central_va]

The rest of the world practices protectionism. The rest of the world charges really high import tariff on our exports, the rest of the world operates with a trade surplus. So there must be something good about import tariffs.

Adam Smith, the trade God, never envisioned multi national corporations closing factories in England and moving production to the third world to exploit cheap labor and then re importing the same product back into England duty free! Smith would have been hung for that. That is not Free Trade. That is f--k trade.