Posted on 12/03/2014 8:11:41 AM PST by IBD editorial writer
With all the economic gloom in the world, many have been perplexed: Why have stocks done so well, especially in the U.S.?
(Excerpt) Read more at news.investors.com ...
Because “Wall Street” and the Stock “Market” is a New York and East Coast Elites RIGGED “Game”.
Two words
Quantitative Easing
Artificial super low interest rates and unlimited Fed pumping...nothing else.
Really? People find this confusing? Probably not. Probably just a guy looking for hits. The answer is pretty simple. There are different type of stock traders, some are buy and hold, others are buy and sell. Buy and sell traders don’t actually care about the value of the company in relation to the price of the stock, they just care is somebody will buy for more than they paid. And with internet trading buy and sell traders took over the market. Stock prices no longer have any relationship to the economy or performance, they just relate to buzz and whether or not somebody else will pay more soon.
QE $ have to go somewhere.
Call it “inflation”.
When the markets imploded in the Fall of 2008, most large US corporations:
1) Significantly cut unnecessary spending
2) Let go of unproductive and unnecessary personnel
3) Straightened out their balance sheets and moved to large cash surpluses.
Things the Federal Government should be doing.
Because big banks, and right behind them hedge funds, can borrow at Zero % interest from Central Banks, looking for central-planning, proto-Keynsian “stimulus” of demand.
Banks cash reserves, due to QE, have never been higher, so that money has to go somewhere.
Everyone knows its what Central Banks and politicians want, so stocks rising has been as close to a sure thing as exists.
With oil prices sliding, expect it to continue.... I think :)
Stock prices no longer have any relationship to the economy or performance, they just relate to buzz and whether or not somebody else will pay more soon.
“Artificial super low interest rates and unlimited Fed pumping...nothing else.”
That is most of it.
Depends on what you’re doing. If you want to buy and hold stocks are hazardous as most are over priced, it takes a lot of . If you want to sell them soon they’re a find investment, just buy when there’s going to be buzz and sell when there’s buzz, you’ll make a profit 9 times out of 10.
Easy. Where else are you going to put your 401k?
“Maybe lottery tickets are better investment?”
Lottery ticket sales are a de facto tax on stupidity.
If you are a gambler, the stock market has been paying off.
People like easy money.
Maybe they are looking forward to January 20, 2017? ;-)
>> If you are a gambler, the stock market has been paying off.
I’m not a gambler and it’s paying off for me. I have had essentially the same portfolio for nearly a decade.
>> People like easy money.
I like dividends.
Yep, no other place to put it right now.
Carbon credits never passed Congress. Now Inhofe will be Chair of Environment.
Obama has adopted much of George Bush's WOT platform. And most people are taking for granted that there have to be reforms to healthcare.
Anyone here Schumer and Harkin denounce the ACA this week? That is something the stock market takes heart in.
...because the Fed is “printing” $85 BILLION a month and putting it into the stock market? Do ‘ya think! Put that money in my bank account and watch me “thrive.”
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