So Fed was played by Trump again

Discussion in 'Trading' started by kashirin, Mar 24, 2020.

  1. kashirin

    kashirin

    Trump got zero interest rates and 100 bln+ printing every day
    and 2.5 trln stimulus with likely 500 bln blank check

    and now removes all restrictions in 7 days

    Futures limit up

    the only thing what if he gets virus and gets into ICU?

    In the mean time prepare Dow 50K Gold 10K
     
  2. Pekelo

    Pekelo

    You are like a sexy girl on a date, getting my hopes up.
     
  3. tsfx

    tsfx

    Trump didn't "get" anything. Conditions required liquidity flooding otherwise lending rates would've hit 100% :)

    Everyone is underestimating the fragileness of the markets. Your 1 tick market moves during normal times is an illusion.

    That's actually the scariest thing now when the masses start to think this way and going to pile up on stocks and stuff. Price will never go where the masses want it.
     
  4. Specterx

    Specterx

    Not really true IMO - genuine manias and bubbles do require public participation and the self-reinforcing expectation of rising prices, which is how prices get to crazy levels in the first place. It's almost hard to imagine a true mania now because for eleven years the "bubble" has been in bearishness.

    Yeah, I think Covid will end up be a similar marker to the '97 Asian crisis and Y2K; the crisis will end after a few months but the emergency measures will still exert an effect, and blow what will likely be the biggest asset-price bubble of all time.
     
  5. tsfx

    tsfx

    If you say so. You are wrongly defining a bubble like the most. You think that nominal rise in prices is what constitutes as a bubble because prices look high on the left side of your computer screen.

    Take a look at this chart. SP500 vs FTSE100 percent change difference. If US was really in a bubble then why did the FTSE100 (and europe and australia etc) drop MORE than the SP500 during this outbreak ??

    FTSE100 was trading at 2015 levels before this crash came. Yeah, you need to reasses your definition of value.
     
  6. Specterx

    Specterx

    My definition of a bubble is "a sharp rise in prices which can't remotely be justified by even the most optimistic forecasts". I'm not really sure what you are arguing against since the S&P 500 was definitely not in a bubble prior to Covid, and I didn't claim that it was.

    A genuine bubble would be something like SPX PE at 50 and Nasdaq at 75-100, which we might well see in the coming years.
     
  7. tsfx

    tsfx

    aa ok, my bad. I understood differently
     
  8. wrbtrader

    wrbtrader

    You prepared...already invested or planning to invest when the Covid-19 problem has been officially resolved ?

    wrbtrader
     
  9. padutrader

    padutrader

    so it will go where one person-some person -wants it?

    such comments which i have been hearing for 30 years have always amused [bemused?] me

    do you think one person can move dow 50000 points?
     
  10. tsfx

    tsfx

    Where did i say that price is moved by the demand side at all ? :sneaky:
     
    #10     Mar 24, 2020