Dow Jones booming | TigerDroppings.com
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Roaad
LSU Fan
Lunch Wagon
Member since Aug 2006
53846 posts

Dow Jones booming

The economy is clearly fixed!

Amirite Powerman?


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21471 posts

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SundayFunday
LSU Fan
Member since Sep 2011
5489 posts

re: Dow Jones booming
I'll be happy with the economy when gas prices go down.


Tyrusrex
LSU Fan
Member since Jul 2011
343 posts

re: Dow Jones booming
quote:

I'll be happy with the economy when gas prices go down


Unfortunately, gas prices usually only goes down in bad economic times because demand has gone down. That's why when the Republicans were attacking the Democrats and Obama for the rise in gas prices from the end of Bush's term it got no traction. The reason was that gas prices were so low at the end of Bush's term was because the economy was in the gutter.


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21471 posts

re: Dow Jones booming
quote:

Unfortunately, gas prices usually only goes down in bad economic times because demand has gone down. That's why when the Republicans were attacking the Democrats and Obama for the rise in gas prices from the end of Bush's term it got no traction. The reason was that gas prices were so low at the end of Bush's term was because the economy was in the gutter.


While that's true, it only looks at one side of the equation. The value of the dollar is also important. And with the Federal Reserve maintaining their ZIRP/QE to infinity policy, it has quite the effect on rising prices.


deltaland
Ohio State Fan
Member since Mar 2011
27001 posts

re: Dow Jones booming
quote:

Unfortunately, gas prices usually only goes down in bad economic times because demand has gone down. That's why when the Republicans were attacking the Democrats and Obama for the rise in gas prices from the end of Bush's term it got no traction. The reason was that gas prices were so low at the end of Bush's term was because the economy was in the gutter.


I don't think it has that much of an impact. Maybe 30-40 cents but the rise from 1.79 to almost 4.00 was not because of an economic change. The economy isn't any better than at the end of Bush's tenure, yet gas prices are still high.


Asharad
Alabama Fan
Member since Dec 2010
1962 posts

re: Dow Jones booming
I moved money out of the market today. The economy isn't running well enough to justify the recent gains.


TOPAL
LSU Fan
Member since Mar 2010
902 posts

re: Dow Jones booming
House of cards.


TheDoc
LSU Fan
doc is no more
Member since Dec 2005
99297 posts

re: Dow Jones booming
I think it's gonna crash in the next 6 months


slim thug
Member since Apr 2010
8004 posts

re: Dow Jones booming
crash?

havent we been saying that since 2009ish?

it may pull back, but i think "crash" is a bit strong


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CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46756 posts

re: Dow Jones booming
quote:

The value of the dollar is also important.


It is much less important since so much US energy is now or will soon be reaching the market, we are about to become an energy exporter, and many of our refineries are acquiring cheaper US oil (dependng on the piplelines available).


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21471 posts

re: Dow Jones booming
quote:

It is much less important since so much US energy is now or will soon be reaching the market, we are about to become an energy exporter, and many of our refineries are acquiring cheaper US oil (dependng on the piplelines available).


This is absolutely irrelevant to the value of the dollar being unimportant (or less important) in oil and gas prices.

If the dollar devalues, prices go up relatively, if the dollar gains value, prices go down relatively. That is true regardless of how much energy the US produces.


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Reubaltaich
USA Fan
A nation under duress
Member since Jun 2006
2925 posts

re: Dow Jones booming
quote:

I'll be happy with the economy when gas prices go down.


I will be happy when the US economy starts producing 300K plus jobs a month.

The US economy must produce at least 200K jobs/mnth just to keep up with population growth. We have not had a 200K positive job growth month for years.

We are going need 300K jobs produced per month for a long period of time just to get back to 7% UE. With obama as President, I don't see it happening for a long time.



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AlaTiger
LSU Fan
Member since Aug 2006
15660 posts

re: Dow Jones booming
I was talking to a financial advisor who manages a significant portfolio. He told me that everyone knows that the fundamentals are awful, but at this point, you've got to ride the market. He said that things are going to crash eventually because we are in a huge mess, but it would be malpractice to not try and make the most out of the situation for his clients, so he is pouring money in.

I wonder how many others are feeling this way.

Clearly, we are riding a bubble again, just like the tech bubble and the housing bubble. It isn't based on anything and it will pop and when it does, trillions of dollars will be lost. The key is to know when to get out and to also recognize that the psyche of the market is very fragile.

I also think that the view of investors is that America is a mess, but money follows the safest bet. It is still a better investment than anywhere else, so the money keeps flowing our way. We still have no competitors. This is why Obama is not worried about debt. He has basically collateralized all of the wealth and holdings of every private citizen in America and is using it to bankroll his government largesse. I think that investors are starting to understand this and we are going to extend this thing for another 5-10 years based on a Ponzi scheme. But, when it crashes, there will be no coming back.

That is my theory, anyway.


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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
27676 posts

re: Dow Jones booming
quote:

I think it's gonna crash in the next 6 months


Probably not. Don't fight the Fed and the Fed's current actions are designed to pump equities.


MoreOrLes
LSU Fan
Member since Nov 2008
18437 posts

re: Dow Jones booming
quote:

Probably not. Don't fight the Fed and the Fed's current actions are designed to pump equities.



This is absurd

So suddenly printing money in quantities that may eclipse any other time period in history is a real fix?


GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
27676 posts

re: Dow Jones booming
quote:

So suddenly printing money in quantities that may eclipse any other time period in history is a real fix?


Of course it's absurd. Pumping money is not a real fix. The real fix is production.

I know you know this but DOW 14,000 in 2007 does not equal DOW 14,000 2013. The majority of the people do not understand this.

Now what I meant by my "don't fight the fed" comment is Bernanke's QE and ZIRP policies are chasing money out of the bond markets and saving accounts. People are greedy and will seek a better return than bonds, saving accounts, CDs, etc. thus they are putting their money into equities. This is lifting the DOW so don't expect it to go down as long as Bernanke is making the other side unattractive to invest in.
This post was edited on 2/1 at 8:16 pm


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