Dow?

Irvinecommuter said:
daedalus said:
Compressed-Village said:
Powell's speech, in plain English: 

"There is too much debt in the US & globally.  It's hurting growth.  This can be resolved 1 of 2 ways:

1) Widespread defaults (including on sovereign debt)
2) Inflate it away

Today we are accelerating Option #2." 
Click to expand...

The way to reduce debt is to increase borrowing costs.  This is focused on the cost of debt, not debt itself.  As far as "major policy shift", this is anything but and is, in fact, more of the same.  I agree with IC.  Spigot full blast.  We are going to party until we puke, and the hangover will be quite a doozy.  But fortunately most of won't have jobs we'll need to get up early for.
Click to expand...

Three major problems:

1)  The Dow/Investor expects this now.  Fed basically blow off both of its mandates (managing unemployment and inflation) and the Dow was like meh (flat for most of the session and +250 at the end).  This is junkie/addict behavior

2)  Many amateurs have started entering the market to supplement their income (cuz they have reduced hours or no jobs).  Looking like dot.com bubble again.

3)  We did all this tap turning for no tangible result...no infrastructure, no infusion of capital to working/middle class, no national healthcare, no longterm investment of any kind...it's just basically pumping money into the market. 

This will turn out badly in a few years...real bad and people will misinterpret the causes again.  The rich knows and are getting out the game.
https://www.bloombergquint.com/onweb/ultra-wealthy-club-stockpiles-cash-as-u-s-economy-fears-grow

Oh by the way...don't look at the dollar. 
Click to expand...

It will end badly in a few years?  I remember hearing the same thing from people back in 2009 when the Fed started it's QE journey. The Fed and the gov't can keep things propped up for longer than most people realize, they effectively have unlimited checkbooks. Plus the US isn't the only one with the printing pressure going full blast, it's just a pile of dirty shirts out there in the world and we now may not be the cleanest dirty shirt in the bunch.
 
So far the markets love this...markets love clarity...Dems failed to take over the Senate and actually lost (as much as 10) seats in the house.  Even if Biden wins...no tax increase, no banning fossil fuels, no re regulation, no green new deal, no nothing.  Markets love divided government, divided government is paralyzed government.  If Trump wins then we just keep on trucking...either way the economy and the markets win.

How Democratic failure to take the Senate could leave Biden a lame duck president and scuppers any chance of packing Supreme Court to undermine appointment of Amy Comey Barrett
Republicans are on track to keep control of the Senate which, if Joe Biden wins the White House, could make him a lame duck president from day one
As Senate leader Mitch McConnell would control what comes to Senate floor
He could stop Biden judicial appointments and any court packing plan
He could stop any Biden legislation on health care
Biden could use executive power on some issues
Democrats are facing tough questions on Wednesday morning after dropping billions of dollars on Senate and House races only to have results come up short
Nancy Pelosi will remain speaker but did not pick up the House seats she predicted her party would win 
Democrats are poised to remain in control of the House, but they lost at least six incumbents and failed to oust any Republican lawmakers in initial returns

https://www.dailymail.co.uk/news/article-8913935/Democrats-face-tough-questions-predictions-come-short-House-Senate-races.html
 
Market is not really making sense any more...it's a lot of Robin Hood traders that push stocks that they like. 

BBY reported great earnings yesterday and got slammed.  Tesla is marching to 600 without any reason.

Market is up and down on whatever the news of the day is.  Just irrational trading at this point.
 
Irvinecommuter said:
Tesla is marching to 600 without any reason.
Click to expand...

Well... they are the leading EV maker despite the naysayers. Model 3s are everywhere and Ys are starting to get there too.

And the Cybertruck is still the cheapest eTruck coming out.
 
Cornflakes said:
In a grand scheme of theme, DOW actually underperformed for 2020.
DOW +7%
S&P500 +16%
NASDAQ +42%
Click to expand...

Main Street don?t care because they loss their jobs or business. They are living on rental assistance aka have not paid their rent or mortgage with government mandate.
 
I know y'all suffering because of covid-19, I am gonna give y'all $2T.

Peter, you go and spend every single penny of that $600, your share, and make sure that Paul, who is already rich and not getting $600 from me indirectly gets almost all of the $600 that you are going to spend. And then some because Paul's stocks and real estate did better.

2021 arrives.
Peter, you are where you were last January. Maybe slightly worse.
Paul, Congrats, you are very smart. You have clearly done very well.

 
News flash: people are suffering. This is worst than the RE crash.

Cornflakes said:
I know y'all suffering because of covid-19, I am gonna give y'all $2T.

Peter, you go and spend every single penny of that $600, your share, and make sure that Paul, who is already rich and not getting $600 from me indirectly gets almost all of the $600 that you are going to spend. And then some because Paul's stocks and real estate did better.

2021 arrives.
Peter, you are where you were last January. Maybe slightly worse.
Paul, Congrats, you are very smart. You have clearly done very well.
Click to expand...
 
oh, I know. It's terrible.

Just looking at my credit card statements over last 9 months. Winners are Amazon, Costco, and Instacart.

Losers are barber, my fav neighborhood restaurant, that boba place, ice cream place, breakfast place etc where we used to hang out with our kids.

It is sad..
 
You must log in or register to reply here.
Back
Top