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Message
Why is the stock market rallying right now?
Posted on 2/24/24 at 8:44 am
Posted on 2/24/24 at 8:44 am
S&P at all time high
I just don’t understand. High employment, uncertain presidential election year, high interest rates, record inflation. But the stocks are trending the highest ever.
I just don’t understand. High employment, uncertain presidential election year, high interest rates, record inflation. But the stocks are trending the highest ever.
Posted on 2/24/24 at 8:58 am to bayou choupique
Interest rates trending lower plus the largest companies in the world are making insane amounts of money and they drive much of the market.
Posted on 2/24/24 at 9:02 am to bayou choupique
quote:
High employment
Posted on 2/24/24 at 9:19 am to bayou choupique
just don’t understand. High employment, uncertain presidential election year, high interest rates, record inflation. But the stocks are trending the highest ever.
__________
Your interest rate and inflation statements are no longer true. Both are trending down from last year.
Business is good, especially for large cap. Look at the strength from big guys like Walmart, Costco, Amazon, Microsoft, and Nvidia. 2nd half of the year will be hard pressed to stay this strong overall, but we are riding right now.
__________
Your interest rate and inflation statements are no longer true. Both are trending down from last year.
Business is good, especially for large cap. Look at the strength from big guys like Walmart, Costco, Amazon, Microsoft, and Nvidia. 2nd half of the year will be hard pressed to stay this strong overall, but we are riding right now.
Posted on 2/24/24 at 9:29 am to slackster
quote:
Interest rates trending lower
I thought mortgages just moved above 7% again?
Nonetheless, I don't understand the stock market, which is why I don't day trade
Posted on 2/24/24 at 9:32 am to Lsut81
The markets are always forward looking trying to predict what the economy will look like in ~6 months time. You can’t judge the markets based on current economy and vice versa. This is also why it’s so hard to time the market bc it is forward looking.
Posted on 2/24/24 at 9:36 am to bayou choupique
They are manipulating things to prop Joe up.
Posted on 2/24/24 at 9:40 am to bayou choupique
I’d argue due to inflation that stocks are the only thing currently that can yield a higher return than the inflation rate.
Yes inflation is slowing but during the highest points many people racked up debt and need to pay it down.
Also capital is expensive so you see less money going towards risky startups and more money towards established companies and blue chip stocks. Add in record profits in blue chips yielding good dividends and it makes stocks a good investment currently. We are seeing a 15% return on our portfolio currently
Yes inflation is slowing but during the highest points many people racked up debt and need to pay it down.
Also capital is expensive so you see less money going towards risky startups and more money towards established companies and blue chip stocks. Add in record profits in blue chips yielding good dividends and it makes stocks a good investment currently. We are seeing a 15% return on our portfolio currently
Posted on 2/24/24 at 9:44 am to bayou choupique
quote:High employment is a good sign for the economy.
High employment
quote:Every year is uncertain.
uncertain presidential election year
quote:More like "normal interest rates" with a prospect to go lower soon.
high interest rates
quote:Not even close to a record. Inflation exceeded 10% during the Carter presidency. 3.3% today is a problem but NOT a record.
record inflation
quote:Obviously...
I just don’t understand.
Posted on 2/24/24 at 9:45 am to bayou choupique
What I don’t understand even more is the older guys at work telling me they can’t retire because Biden crashed their 401ks
Posted on 2/24/24 at 9:58 am to bayou choupique
Anticipation of lowering rates. A whole lot of money was on the sidelines or in money markets making five percent and now want into the market that has been exploding to the upside. Inflation is awful thing, but the great resignation, govt handouts to the middle class that did not need it and hyper wage growth during that time has helped prop up the consumer and keep the economy going strong.
The only thing holding the market back is the continued prediction of it crashing. Even high interest rates have not been an issue. It has really proven what so many have said all along, rates were held artificially low and this economy has proven it can handle regular rates in stride. Inflation adjusted returns since 2008 are at 7.5%, so over a longer period, runs like this are just averaging out the market to expected historical type returns.
The only thing holding the market back is the continued prediction of it crashing. Even high interest rates have not been an issue. It has really proven what so many have said all along, rates were held artificially low and this economy has proven it can handle regular rates in stride. Inflation adjusted returns since 2008 are at 7.5%, so over a longer period, runs like this are just averaging out the market to expected historical type returns.
This post was edited on 2/24/24 at 2:52 pm
Posted on 2/24/24 at 10:39 am to SulphursFinest
quote:
the older guys at work telling me they can’t retire because Biden crashed their 401ks
They probably contributed the minimum and, rather than blame themselves, blame Joe.
Reminds me of a relative who owed his job to the union defending him. He nonetheless talked bad about the union, and he convinced himself that Ronald Reagan loved unions and Jimmy Carter hated them. Very confusing.
Posted on 2/24/24 at 10:41 am to bayou choupique
Every restaurant, shopping mall, and bar is packed to the brim every week Thursday-Sunday. People keep talking about hard times and I see nothing driving around every week that suggest that. People spending money everywhere.
Posted on 2/24/24 at 10:41 am to The Torch
quote:
They are manipulating things to prop Joe up.
Despite being false and frankly absurd, “they’re” not doing a very good job…
Posted on 2/24/24 at 10:55 am to SulphursFinest
you think a couple of months of good stock numbers makes up for 3 years of bad ones
Posted on 2/24/24 at 10:57 am to bayou choupique
Because businesses are making money.
Posted on 2/24/24 at 11:00 am to tigersmanager
quote:
you think a couple of months of good stock numbers
Go back and start over if you think this has been just a couple of months
Posted on 2/24/24 at 11:04 am to tigersmanager
I think all time highs is great for a retirement account. Don’t be stupid
Posted on 2/24/24 at 11:08 am to bayou choupique
AI buzz, economy/earnings held up better than expected, inflation going down, anticipation of Fed cutting rates.
Posted on 2/24/24 at 11:19 am to tigersmanager
quote:
you think a couple of months of good stock numbers makes up for 3 years of bad ones
VTI - a total stock market index - is up 36% over the last 3 years.
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