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Why is stock market going up when there is so much bad news? Please help

Posted on 6/2/22 at 8:36 pm
Posted by davidsheroes
Los Angeles
Member since May 2007
3888 posts
Posted on 6/2/22 at 8:36 pm
Why is stock market going up when there is so much bad news?
Gas prices continue to rise
Food prices continue to rise
Supply chain issues
Unemployment numbers were not good
Consumer price index continue to rise
Manufacturing numbers are not good
Car sales are down
Housing market is down
CEO confidence index is at the lowest it has ever been.
Inflation is here, recession might be coming
Russia Ukraine war
Biden administration

Is the stock market being pushed up by day traders or those bulls playing with the market?

If you are in it for the long haul, are you changing your thinking from being mostly in cash and going more for equities.

What is going on? Do you think we are headed for a bear market? Do you think we reached the lows of the stock market and headed up for good?
This post was edited on 6/2/22 at 8:37 pm
Posted by Shepherd88
Member since Dec 2013
4951 posts
Posted on 6/2/22 at 8:37 pm to
LOL
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
82367 posts
Posted on 6/2/22 at 8:58 pm to
All of that bad news means the Fed is less likely to continue hiking rates which means stocks go up
Posted by Billy Blanks
Member since Dec 2021
5230 posts
Posted on 6/2/22 at 9:04 pm to
Lot of cash sitting on the sidelines who decided to get in at low prices too. I did that some today.
Posted by Leonard
New Orleans
Member since Sep 2014
4254 posts
Posted on 6/2/22 at 9:16 pm to
Is the NASDAQ not down 20% YTD in this scenario?
Posted by saintforlife1
Member since Jul 2012
1392 posts
Posted on 6/2/22 at 9:17 pm to
Stock market is a leading indicator, not a lagging indicator. There's your answer.
Posted by Realityintheface
Member since May 2022
1784 posts
Posted on 6/2/22 at 9:20 pm to
You sound like you are about to catch a case of FOMO.

Don’t be lured into it. The CEO of the biggest bank in the USA says a “hurricane” is coming and he is not a fear monger. Morgan Stanley says S&P500 about 3400 around mid-August.

Nobody wants the music to stop so they keep dancing and ignoring the problems and hoping they will go away. Fairly common human trait. But the problems won’t go away, the music will stop, and then a sudden rush for the exit will happen.

It’s wishful thinking the Feds won’t raise interest rates like they said. That is baring some black swan event that changes the beat.
Posted by lynxcat
Member since Jan 2008
25373 posts
Posted on 6/2/22 at 9:25 pm to
Just don’t worry about it if you aren’t trading.

Stock market is forward looking so the current news cycle is not the primary driver.
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1877 posts
Posted on 6/2/22 at 9:43 pm to
quote:

Why is stock market going up when there is so much bad news?


Warren Buffet is why.
"buy when everyone is selling and sell when everyone is buying"
Posted by MrSpock
Member since Sep 2015
5176 posts
Posted on 6/2/22 at 9:49 pm to
quote:

Is the stock market being pushed up by day traders or those bulls playing with the market?


It's a bear market rally. They happen up to ~15% or more. But have no fear this shite is going to goblin town shortly.
Posted by TigerDeBaiter
Member since Dec 2010
10773 posts
Posted on 6/2/22 at 9:53 pm to
Nothing goes straight up or down. Relief rally. Low volume one. Wont last. but who cares. Just keep DCA.
Posted by sawtooth
Baton Rouge
Member since Jul 2017
3588 posts
Posted on 6/2/22 at 9:57 pm to
Wait for it………

People are idiots. They want things to be better when clearly they are not. When Elon Musk can send a Tweet and cause the market to rally you know it’s not on sound footing.
Posted by Odinson
Asgard
Member since Apr 2014
2893 posts
Posted on 6/2/22 at 9:58 pm to
That’s all old news and has already been accounted for during the recent 8 week record decline.
Posted by skewbs
Member since Apr 2008
2246 posts
Posted on 6/2/22 at 10:53 pm to
quote:

Do you think we reached the lows of the stock market and headed up for good?

quote:

headed up for good?




Up forever and ever?!?

Listen to most of the advice in this thread, particularly about continuing to DCA and not worry about what the market is doing on a daily basis.
Posted by Diseasefreeforall
Member since Oct 2012
7514 posts
Posted on 6/3/22 at 7:36 am to
quote:

Stock market is a leading indicator

More like a guess and probably not that educated of one considering how unprecedented the lead-up to this moment in time has been with the last decade of monetary policy (which the Fed may still be a little drunk on) and lasting effects of the extreme covid response measures.

Posted by Turf Taint
New Orleans
Member since Jun 2021
6010 posts
Posted on 6/3/22 at 8:23 am to
May unemployment of 3.5% is very good.
US is a job creation machine, granted lots of hospitality (going into summer) but not a recession tea leaf.

Corp reported Q2 profits will be interesting.

Aggregating a single economic picture in this modern US economy with many dynamic underlying events is challenging. Keep an eye on leading pulse indicators at the micro. Be skeptical of the macro accuracy.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11998 posts
Posted on 6/3/22 at 8:24 am to
quote:

Why is stock market going up when there is so much bad news?


Stocks aren't an earnings discounting mechanism because of retirement flows. The only thing that will make them go down is a drop in labor participation or unemployment which decreases national income.
Posted by Diseasefreeforall
Member since Oct 2012
7514 posts
Posted on 6/3/22 at 8:52 am to
The question seems to be whether the Fed can thread the needle on inflation or will they underestimate it again and be forced to deliver a bigger jolt. Maybe not Volcker-esque but still larger than anticipated
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41916 posts
Posted on 6/3/22 at 11:14 am to
Stock market trades today based on what traders will happen in future.

If stocks are going up, traders are thinking the future will be less crappy than today. Still crappy perhaps, but less crappy.
Posted by notiger1997
Metairie
Member since May 2009
62056 posts
Posted on 6/3/22 at 1:10 pm to
Hope today wasn’t too confusing for you. Pretty good news day, but market is down.
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