market going up like things are booming... but USA in 'Death Spiral'

Discussion in 'Trading' started by iceman1, Aug 6, 2012.

We will crash in September - October

  1. yes

    11 vote(s)
    35.5%
  2. no

    16 vote(s)
    51.6%
  3. this time its different

    4 vote(s)
    12.9%
  1. I

    Average PE ratio of S & P is 16. What's wrong with earnings.
     
    #41     Aug 7, 2012
  2. Please don't discount the foreign money flowing into stocks, currency, treasury, real estates etc... Asia and Europe markets still stinks so the only logical places left is the banks, the mattress, or the US of A. In the race to the bottom, the US is holding up okay. The dollar reserve currency status to many is still something they trusts in relative to all the devaluations and all that trade bypasses going on in the world.

    Everybody is talking about new currency this new currency that. But at the end of the day, it's going to be a huge leap of faith to accept something else with no mileage or track record similar to the dollar.
     
    #42     Aug 7, 2012
  3. Ash1972

    Ash1972

    Suppose it's raining outside. Seeing this, you go out with an umbrella. For whatever reason it stops raining right there and then. The obvious conclusion is that taking an umbrella out when it's raining is the perfect 'cure' for rain.

    That's precisely the logic you are applying here. QE, money printing etc. is the government's protection against the crumbling economy and does precisely FA to fix it. The fact that the stock market started to go up in March 2009, 5 months after the Fed started QE1, is coincidental.

    If you want to know more about dead cat bounces, look at other major bear markets in history. But I guess like most people here, history is not a strong point.
     
    #43     Aug 8, 2012
  4. Ash1972

    Ash1972

    Quick questions for the bulls: how bullish were you in March 2009?

    Or, is your optimism a function of the most rapid doubling of the stock market ever...?
     
    #44     Aug 8, 2012
  5. Just trade whats going on, and what you see the price action doing. It's so easy to be a doom/gloomer yet S&P holding 1400.
     
    #45     Aug 8, 2012
  6. piezoe

    piezoe

    That kind of thinking might suggest a mental disorder.
     
    #46     Aug 8, 2012
  7. Ash1972

    Ash1972

    And your mental disorder is very similar, just a little more sophisticated. But don't worry, you share it with 99.99% of the human population :)
     
    #47     Aug 8, 2012