Even more Economic Good News: Dow Jones up 28% since January

[Oddball]

Forget it guys, you don't need to get in the lifeboats....The band's playing in the main ballroom!

Party time!

 

[Claudette]

I'm sure this has nothing to do with the stimulus. It is just a coincidence that the Dow Jones reversed its crash within two weeks of the passing of the Stimulus. I guess President Obama just got lucky here because the economy was going to fix itself anyway

It has everything to do with the stimulis, but not in the way you think, halfwit.

The un-stimulating succubus bill re-inflated already overvalued equities, by just printing up a bunch of money. But inflated stock values don't create one dime's worth of produced wealth.

But I guess everything you "know" about economics you heard from Jim Cramer, huh?

QFT
With interest rates at virtually zero there were no good investments so why not pile money into stocks, which had been beaten down.
When rates go up (and they will unless there's an inflation that will make Carter's look like stability) the market will tank. It is over-valued now.

Personally I'm going to put my money in a mayonaise jar and bury it out back. Of course once iinflation hits it won't be worth a damn anyway. I can always sell the mayo jar!!

 

[nodoginnafight]

ewwww ewwww the sky is falling ........

Yeah the numbers are all looking a lot better but ewwww ewwwww TRUST ME the sky really is falling.

 

[Oddball]

I'm sorry...I was all wrong.

I suggest you invest ALL your money into the market, now that it's all better.

Don't worry if it comes down a bit, though...That'll just be a little correction.

 

[Liability]

ewwww ewwww the sky is falling ........

Yeah the numbers are all looking a lot better but ewwww ewwwww TRUST ME the sky really is falling.

Don't dromedaries have TWO humps?

No. Never mind This alleged economic "recovery" is for real and forever!

 

[uscitizen]

It has everything to do with the stimulis, but not in the way you think, halfwit.

The un-stimulating succubus bill re-inflated already overvalued equities, by just printing up a bunch of money. But inflated stock values don't create one dime's worth of produced wealth.

But I guess everything you "know" about economics you heard from Jim Cramer, huh?

QFT
With interest rates at virtually zero there were no good investments so why not pile money into stocks, which had been beaten down.
When rates go up (and they will unless there's an inflation that will make Carter's look like stability) the market will tank. It is over-valued now.

Personally I'm going to put my money in a mayonaise jar and bury it out back. Of course once iinflation hits it won't be worth a damn anyway. I can always sell the mayo jar!!

Put gold in the jar.

 

[Claudette]

QFT
With interest rates at virtually zero there were no good investments so why not pile money into stocks, which had been beaten down.
When rates go up (and they will unless there's an inflation that will make Carter's look like stability) the market will tank. It is over-valued now.

Personally I'm going to put my money in a mayonaise jar and bury it out back. Of course once iinflation hits it won't be worth a damn anyway. I can always sell the mayo jar!!

Put gold in the jar.

Colleague I work with is doing just that. Smart man

 

[nodoginnafight]

I think these threads are so valuable. Not that I think we are economically "out of the woods" - nope, we got a long row to hoe imho. But it is absolutely HILARIOUS to watch the spastic, sputtering rush by the hyper-partisan spin-hacks trying to yank absolutely anything they can out of their collective butts to make sure NO ONE questions the deep dark plight we are in and can NEVER hope to emerge from unless we elect someone THEY like.

Absolutely hilarious.

 

[The Rabbi]

Personally I'm going to put my money in a mayonaise jar and bury it out back. Of course once iinflation hits it won't be worth a damn anyway. I can always sell the mayo jar!!

Put gold in the jar.

Colleague I work with is doing just that. Smart man

Not really.Gold Chart - Last 30 Days
I think gold is a tremendously over-bought commodity.

 

[Oddball]

There was a price spike in both gold and oil last summer.

Lots of subsequent profit taking and paying off some bills.

I don't look for gold to be anywhere near $500.00 in the near future, if ever again, though.

 

[NYcarbineer]

How'd NASDAQ make out under Bubba?

It went from about 690 to about 2700. That's in the ballpark of QUADRUPLING.

Do your own research next time (probably before you post would be a good idea).

 

[Liability]

How'd NASDAQ make out under Bubba?

It went from about 690 to about 2700. That's in the ballpark of QUADRUPLING.

Do your own research next time (probably before you post would be a good idea).

I enjoy the arrogance of dufuses like NYcarbuncle:

But, still, a second look seems indicated:

Beginning-to-end comparisons of anything, particularly of the ups and downs of the stock market, can be extremely deceptive, because such simplistic comparisons ignore what went on during the time between the beginning and the end. In fact, the stock market's performance was downright pathetic under Clinton-Gore and the democrat congress' economic policies, and the markets only delivered those large returns after the republican congress took office in January, 1995. In the first two years of the Clinton/Gore administration, with a democrat Congress and pursuing anti-growth democrat economic policies, the DJIA rose from 3310.00 to 3843.90. That's an anemic 7.76% compounded annual return. The OTC was even worse: rising from 696.34 to 755.20, a pathetic 4.14% compounded annual return.

In the first two years after the republicans gained control of the Congress, the DJIA rose from 3843.90 to 6813.10. That's a 33.1% average annual return. The OTC performance was even better: rising from 755.20 to 1379.85, a 35.2% average annual return. In the second two year period of the republican controlled Congress, the DJIA rose another 37.36%, from 6813.10 to 9358.80, an average annual return of 17.2%. And in the second two year period of the republican controlled Congress, the OTC rose 81.61%, from 1379.85 to 2505.89, an average annual return of 34.8%.

To summarize: the average annual stock market return (compounded annual rate of increase):

Dow Jones Industrial Average: under Clinton/Gore: 7.8%; under the republican controlled Congress: 25%.

NASDAQ (OTC): under Clinton/Gore: 4.1%; under the republican controlled Congress: 35%.

Stock Market Bull Clinton -- (analysis by Kim Weissman, October 22, 2000).

 

[Oddball]

How'd NASDAQ make out under Bubba?

It went from about 690 to about 2700. That's in the ballpark of QUADRUPLING.

Do your own research next time (probably before you post would be a good idea).

It was over 5,000 at one time, and you know it.

I was working in San Jose during and after the crash...It wasn't pretty.

But please, carry on with your bubble boy with a (D) worship and vilification if he has that (R)....It's amusing, in a rather pathetic way.

 

[The Rabbi]

How'd NASDAQ make out under Bubba?

It went from about 690 to about 2700. That's in the ballpark of QUADRUPLING.

Do your own research next time (probably before you post would be a good idea).

Does anyone honestly think Clinton had anything whatsoever to do with that??

 

[Toro]

The market is up the most since 2003, which was also the bottom of the recession. Usually, the best moves for the market are when investors anticipate the end of the recession.

 

[Toro]

How'd NASDAQ make out under Bubba?

It went from about 690 to about 2700. That's in the ballpark of QUADRUPLING.

Do your own research next time (probably before you post would be a good idea).

I enjoy the arrogance of dufuses like NYcarbuncle:

But, still, a second look seems indicated:

Beginning-to-end comparisons of anything, particularly of the ups and downs of the stock market, can be extremely deceptive, because such simplistic comparisons ignore what went on during the time between the beginning and the end. In fact, the stock market's performance was downright pathetic under Clinton-Gore and the democrat congress' economic policies, and the markets only delivered those large returns after the republican congress took office in January, 1995. In the first two years of the Clinton/Gore administration, with a democrat Congress and pursuing anti-growth democrat economic policies, the DJIA rose from 3310.00 to 3843.90. That's an anemic 7.76% compounded annual return. The OTC was even worse: rising from 696.34 to 755.20, a pathetic 4.14% compounded annual return.

In the first two years after the republicans gained control of the Congress, the DJIA rose from 3843.90 to 6813.10. That's a 33.1% average annual return. The OTC performance was even better: rising from 755.20 to 1379.85, a 35.2% average annual return. In the second two year period of the republican controlled Congress, the DJIA rose another 37.36%, from 6813.10 to 9358.80, an average annual return of 17.2%. And in the second two year period of the republican controlled Congress, the OTC rose 81.61%, from 1379.85 to 2505.89, an average annual return of 34.8%.

To summarize: the average annual stock market return (compounded annual rate of increase):

Dow Jones Industrial Average: under Clinton/Gore: 7.8%; under the republican controlled Congress: 25%.

NASDAQ (OTC): under Clinton/Gore: 4.1%; under the republican controlled Congress: 35%.

Stock Market Bull Clinton -- (analysis by Kim Weissman, October 22, 2000).

People put too much emphasis on politics when discussing the market. The fundamentals of the market are far more reliant on monetary policy and the underlying institutions of the economy and the country rather than who is running the country.

 

[Oddball]

The market is up the most since 2003, which was also the bottom of the recession. Usually, the best moves for the market are when investors anticipate the end of the recession.

True as that may be, the uptick didn't come as a product of pumping a zillion dollars of fake value into the system, in order to prop up price bubbles.

 

[Toro]

I'm sorry...I was all wrong.

I suggest you invest ALL your money into the market, now that it's all better.

Don't worry if it comes down a bit, though...That'll just be a little correction.

My thesis has been and remains that we have a rip-your-face-off rally then move sideways for 2-5 years, though I could be totally wrong.

However, this is how the market recovered in 2003. The market had a violent move up, everyone doubted it, people thought we were going back down again because they couldn't believe that the fall-out from the tech bubble wasn't worse, and yet we kept going higher.

I don't think that is going to happen again because I think our problems are much deeper, but don't dismiss that scenario out of hand.

 

[Oddball]

Um...I was being fatuous.

I'll err on the side of well earned cynicism, until consumer spending/confidence and jobs come back around....And even then, I won't take my finger away from the "sell" button.

 

[Toro]

The market is up the most since 2003, which was also the bottom of the recession. Usually, the best moves for the market are when investors anticipate the end of the recession.

True as that may be, the uptick didn't come as a product of pumping a zillion dollars of fake value into the system, in order to prop up price bubbles.

Actually, it did.

The fiscal and monetary stimulus was the largest ever in history up until that time. It was 4x the average total stimulus since WWII. Interest rates went to 1% and remained there for over a year. Monetary aggregates grew over 20% per year. It helped ignite a bubble in housing that was far larger than the tech bubble, and created tremendous distortions in the global economy.

However, the stimulus today is even larger than at the beginning of the decade at 10x the average recession since WWII. I am highly skeptical that the unintended consequences going forward will not be as severe. That is one reason why I have owned (but have since sold) gold and am now long silver (with a stop a few cents below the current price). I think the monetary and fiscal stimulus is helping the economy now but we will have to pay for it down the road.