Dow closes at Record High

[pbs911]

Originally posted by Aurel
The Dow is high because the price of oil is low. And the price of oil is low because Bush buddies have been overstocking it, artificiallly raising the prices. Now, all they have to do is use the stocks, demand lowers, prices drop, Dow goes up. Perfect timing for the elections. None of these things happen by accident. But senator Foley's scandalous taste for little pagers was not part of the plan .

Aurel

I don't know about the stockpiling, but the drop in gas prices near an election is not by accident. It is merely a way for the politicians to avoid having to make any issue of the gas prices in the election campaign, and a way for the oil companies to avoid scrutiy during the same time period. After the election we will see gas prices up again.

[Porsche-O-Phile]

I completely agree and will put my call options (on oil futures) where my mouth is to back it.

[ruf-porsche]

Originally posted by tabs
U Boyz are about as informed as a Chicken on its way to the Processing Plant...

LMAO

[competentone]

Originally posted by tabs
U Boyz are about as informed as a Chicken on its way to the Processing Plant...

That's a good comment about the record in the Dow too. There are a lot of "investors" (Baby-Boomers knowing they have to try to save and invest something for their looming retirement) putting money into mutual funds (they've been told that is the way to invest) and in some cases making individual stock purchases without really knowing what they are doing.

There are a lot of managers of funds and individual investors who are pretty "clueless" and just follow the general "ebb and flow" of the crowd putting their money were everyone else is putting theirs.

Very few are doing any independent serious due-diligence before investing. Very few would even know how to do it.

[Moneyguy1]

Anyone also consider that some of the new found "blood" being invested is that which would have previously been invested in real estate?

[pwd72s]

Originally posted by tabs
U Boyz are about as informed as a Chicken on its way to the Processing Plant...

Cindy is still smearing herself in wood ashes, reading chicken entrails. So far so good. We got out of the market in January of 2000, back in March 2003. Check your DOW graph. Tabby knows I'm not lying...from our S Registry days. The trick is in measuring the height of the chicken entrails drop...

[turbo6bar]

Humorous blog entry:
"10/04/2006 Market Update:

The Dow industrials soared today into record territory as investors were reassured by a much larger than expected contraction in the service sector, weak factory orders, and weaker than expected private sector job growth. In an uncharacteristic revision, Wal-Mart cut its already weak estimate for growth in U.S. same-store sales during September indicating weaker consumer spending and sparking a mid-afternoon rally that brought the Dow to a new record.

The rally faded in anticipation of a scheduled speech by Fed Chairman Ben Bernanke but later revived as the Chairman warned of a "stark economic future" and "severe fiscal challenges" that could be brought on by a rapidly aging population."

[competentone]

Originally posted by turbo6bar
Humorous blog entry:
"10/04/2006 Market Update:

The Dow industrials soared today into record territory as investors were reassured by a much larger than expected contraction in the service sector, weak factory orders, and weaker than expected private sector job growth. In an uncharacteristic revision, Wal-Mart cut its already weak estimate for growth in U.S. same-store sales during September indicating weaker consumer spending and sparking a mid-afternoon rally that brought the Dow to a new record.

The rally faded in anticipation of a scheduled speech by Fed Chairman Ben Bernanke but later revived as the Chairman warned of a "stark economic future" and "severe fiscal challenges" that could be brought on by a rapidly aging population."

It actually all "makes sense" in that "bad economic news" means the Fed will likely cut interest rates and more "easy money" will flow into the economy. The extra liquidity can help the stock market -- at least temporarily...

...eventually the whole illusion collapses.

[tabs]

The Stock Market is the ONLY game left in town...and ironically it will continue to go higher even in the face of BAD NEWS...

Check the CME RE Futures market, they are predicitng a 6.4% decrease over all.

[legion]

Originally posted by tabs
The Stock Market is the ONLY game left in town...and ironically it will continue to go higher even in the face of BAD NEWS...

The money's gotta go somewhere...

The money that fled the Stock Market in 2001 went to...RE.

The money that is fleeing RE is going to...the Stock Market.

If this trend continues, one could have some fun timing the ups and downs...

[tabs]

Thank U Legion....

[nostatic]

as long as TIAA-CREF doesn't go bankrupt I don't care.

If they do, I'll need more ammo

[Aurel]

Originally posted by carnutzzz
Wow -totally clueless!

Bush's buddies in the middle east with the surplus you mean? I thought everyone in the middle east hated Bush?

It's fine to have an opinion of why things are the way they are- but let's try again with something somewhat believeable... mmmkay?

Says someone who will not say anything...mmmkay, not very convincing.
The oil stockpiling has been diccussed ad nauseam in this thread:

The real reason gas & oil prices are so high (not a joke)...

The effect of oil prices on the Dow Jones is not complicated to grasp. The Bush buddies I am talking about are not the ones in the middle east, but the ones in Texas. Come up with a better explanation if you wish, I `ll stick to mine in the mean time

Aurel

[legion]

So let me make sure I understand...

When the economy is down, it is Bush's fault.

When the economy is up, it's part of Bush's manipulation of the oil markets.

I see, no matter what happens, there is a way to blame Bush for something bad. Thanks for clearing that up.

[TyFenn]

I was expecting someone to talk about 1340 March '07 S&P puts.

I should have known once I saw tabs in on this one - hahahaa.

[Aurel]

You get it. We like to blame Bush, he`s such a moron. Always feels good after a hard working day.

Aurel

[turbo6bar]

The market is baffling me, for sure.

The bond market and equities market seem to be heading in opposite directions. Each time we get upside surprises in the economy (few, lately), bonds sell off, but the numerous times we've gotten news indicating a slowing economy, bonds rally big time.

If money is heading into equities, why would bonds be rallying? Why the disconnect between bonds and the Dow? I'm still not sold on the money fleeing RE and going into stocks. I'm willing to admit it is possible.

Still sitting in cash, even if it is the moronic thing to do.