Guys, What is going on with the market that I am missing? The housing sector (a massive part of your economy) is in free fall, corp earnings are soft, the dollar is weak inflation on the rise and the market refuses to go down!!! I'd love some opinons on why, is there just too much cash still in the system, are the asians and europeans still buying or is it something else (any conspiracy theories out there) Cheers
Maybe the weaker dollar is the reason. Assets in the Dow etc... as well as other forms of usd based assets are devaluing when one relates them to other currencies which are increasing in value thus a two edged sword. We see the bad as bad for the u.s market when we base it on the usd and what is taking place with the real estate etc... but viewed from foreign eyes with a strong currency the u.s is cheap cheap cheap. just my .0002 worth.
In other words, the market is not really going up, it's simply adjusting for the devaluation in the US currency. Asset inflation, nothing more. Price the market indicies in a different currency, or gold/silver, and you will get a different picture.
Hydro, Good point but cant that really only go so far I mean what about the US firms who are sitting there and watching their asset base depreciating away? I am no economist but that doesnt make sense
And lets not forget the MASSIVE holdings by the asians and petroarabs how must it be for them to see their assets declinig in value with no real end in sight why would they buy more?
The whole point of trying to get some discussion going is I dont have a clue why there hasnt been a decent selloff and am trying to get an understanding. As they say if you sit down at a poker table and within 5 mins cant work out who the rube is it is probably you.
The stock market is climbing the "Wall of Worry".....old saying. It won't decline much until most have bought into the stock market and that hasn't yet happened....maybe you need to buy. Once you and the rest have bought the stock market, hook, line and sinker then it will drop into a freefall. Let us know when you have bought all you can and are loaded up on stocks......... btw, I will be selling to you when you decide to buy.....
The market's behavior often defies explanation. This appears to be one of those times. The market may be walking on stilts, but it's still walking. I continue to watch in morbid fascination.
The market indices are composed of a diverse base. You have to be able to look at every stock and wonder if it has any REAL value. Any financial firm is a product of the money supply and essentially has no real value if the dollar was to take a crap. High tech crap like GOOG is probably worth sh*t in a financial meltdown. So is AAPL, RIMM, etc. But take a look at a miner, utility, major industrial, agricultural, oil & energy company and you get a different picture. If the dollar was to crap and the stock market took a dive, wouldn't you want to own DD or GE or FCX or MON or ADM or SWN at a 25-50% discount to the current price?