we've been hearing this shit for so long though. Oil is going to drop the market like a sack of bricks. Housing bubble is going to have a gigantic collapse. The dollar is going down. Soft landing this, soft landing that. Look at jobs, look at the taxes. The reason why everyone is so paraniod is because after the tax cuts we saw a level of spending no one has seen before, and no one is accustomed to. I think if taxes keep getting lowered, we can get used to this type of market.
Couple of thoughts. Sales of housing have dropped to 2004 levels. Remember all the vagrants and hobos living in camps back in '04? Maybe it is because our 30-year mortgage rates are up to a lofty 6.25%. Also, though sales are down, as of last month, the backlog of unsold houses decreased, indicating that houses are now selling faster than they are being built. Unless you have a house that you absolutely must sell in a coastal area, I think the FED is doing a decent job engineering a soft landing... SM
Every single day on Bloomberg I hear how the Fed is going to cut rates from some pencil neck geek from Harvard. Any time we get a little dip in the equity market, out they come touting rate cuts, as the equity markets make new highs, what is wrong with this picture?
Here we have our Jewish treasury secretary from the largest wall street investment bank tell everyone the economy is strong. Well if the economy is strong why are we going to cut rates. Geesh I am turning off these new channels.
The indexes making new highs is irrelevant IMO. They keep replacing the index components with newer better performing stocks. If the dow was the same stocks it was in 2000, I bet it would be at 7000. Meanwhile, no one is getting raises, their health care and pensions are being eliminated. The economy is only good for the CEO's. The whole thing is a joke. :eek:
I'm starting to wonder how much the economy has really grown at all in the last 5 years. I thinks its really just inflated more than anything else. Are we going to devalue to the currency some more inoder to cause assets to raise and therefore beable to borrow against the assets again to fuel consumption? Where is the organic growth?
All you guys upset about the rising market will find company with Soros and Tudor Jones. They're sucking this year. http://www.bloomberg.com/apps/news?pid=20601103&sid=amAJiOBOWJyI&refer=news
There big macro guys and there hasnt been that much movement in interest rates and currencies. Although I suspect the yen is going to make a large move before the year is done.
this isnt a good point. They change the stocks to better reflect the face of buisness noadays. There are more tech stocks than there was because the tech sector plays a bigger role. If you had your way, the dow would have the same comapnies as it did a decade ago. The dow would be full of cotton mill and rotarly phone companies.