Fact is though that in 2017 and 2018, US listed corporations posted huge increases in profits that fully justified index levels and many on here refused to acknowledge that. Basically, indexes often rise in anticipation of future changes in earnings, so one could argue that the anticipation in previous years ( say 2013-2016 ) were essentially correct in nature. Often the initial moves in prices on earnings re-adjust after the initial move, but if the underlying numbers support a higher stock price, that will eventually occur. Short term price moves are often off or even irrational in nature, like when AAPL went from $135 to $90 and the P/E was under 10. So now we see S2007S complaining about AAPL's valuation at $240, but I don't remember him taking a positive outlook on AAPL's numbers when it was $100 a share ( quite the opposite I believe, but at best neutral ).
I never said corporate buybacks are not real transactions...I did say that corporate buybacks have juiced the markets by many many many percentage points.
Yikes FEDERAL RESERVE Worries grow over the Fed’s efforts to fix funding issues: ‘This is all likely to get much worse’ PUBLISHED AN HOUR AGO Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM KEY POINTS Federal Reserve officials have been working feverishly to address issues that popped up more than a month ago in the repo market. The central bank last week started a new bond-buying program that is expected to grow its balance sheet by $60 billion a month to start. J.P. Morgan Chase analysts, among others, worry that recent additional hiccups in overnight lending are symptoms of bigger problems that will grow worse as the year comes to a close. https://www.cnbc.com/2019/10/22/fed...e-over-the-efforts-to-fix-funding-issues.html
Uh ohhhh FEDERAL RESERVE Elizabeth Warren pushes Treasury Secretary Mnuchin for answers on overnight lending issues PUBLISHED 3 HOURS AGOUPDATED AN HOUR AGO Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM KEY POINTS Sen. Elizabeth Warren is pressing Treasury Secretary Steven Mnuchin for answers on recent events in the overnight lending, or repo, markets. In a letter, the Democratic presidential candidate says she worries banks will use the issue as an excuse to get financial regulations eased. https://www.cnbc.com/2019/10/22/fed-repo-elizabeth-warren-pushes-steven-mnuchin-for-answers.html
TXN earnings knocking down all semis after hours!!! Missed on revenue. Texas Instruments Sees Q4 GAAP EPS $0.91-$1.09, Sales $3.07B-$3.33B vs $3.59B Estimate Benzinga · 10/22/2019, 4:04:35 PM
Ehhhh no worries....this news should catapult the s$p to continous fresh highs!!!! Worries grow over the Fed’s efforts to fix funding issues: ‘This is all likely to get much worse’ PUBLISHED TUE, OCT 22 20196:42 AM EDTUPDATED TUE, OCT 22 20193:05 PM EDT Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM KEY POINTS Federal Reserve officials have been working feverishly to address issues that popped up more than a month ago in the overnight bank lending market. The central bank last week started a new bond-buying program that is expected to grow its balance sheet by $60 billion a month to start. J.P. Morgan Chase analysts, among others, worry that recent additional hiccups in overnight lending are symptoms of bigger problems that will grow worse as the year comes to a close. https://www.cnbc.com/2019/10/22/fed...e-over-the-efforts-to-fix-funding-issues.html
Huge bellwether of our economy Caterpillar shares tank after company cuts forecast again, earnings badly miss the Street https://www.cnbc.com/2019/10/23/caterpillar-earnings-2point66-a-share-vs-2point88-eps-expected.html
CAT is a mining bellwether, not so much economy. CAT is a big exporter, possibly the strong USD may be influencing those results. Refer to 5 year chart below, Orange is US Mining Index, Green line is CAT, Blue is S&P500. VALE the South American miner had a large setback with iron ore and dam bursting, they were going fully autonomous with Caterpillar, that may have seen a setback.
%% That, OVernite; +4th quarter+ 1st quarter tends to be superStrong for Tech. Too bad TSLA is in auto sector; down >> 23% YTD,