Hey, we want the Dow to go to 50,000!
Course a jar of Peanut Butter will run ya $69.80!!!
People don’t understand how much equity in the Dow is controlled by “institutional investors” or whatever. That means government. Something like 60% is the figure I heard.
So the Dow is, for all intents and purposes, as false as the housing sector was. The gummint can raise or lower the Dow any time they want, just by tweaking the interest rates, or printing more FRN’s and bidding up the stocks.
Little relation to reality as I see it. But it gives some folks the warm fuzzies.
And I agree, they should not have done any cuts, but they did, they had to, because the speculators on the street had already priced a projected cut in. If the Fed DIDN’T make a cut, the indexes would have fallen through the floor.
I’m just glad I don’t own any stocks. Or commercial paper.
Institutional investors are not government run. It means mutual funds, investment firms, banks, etc. PE ratios of stocks in the market are actually very solid right now. As such there is little risk to the downside in a 1-3 year timeframe for now.