Dow closes at Record High
 

Whoo Hooo! Thank God the aftereffects of Clinton's insidious bubble economy are finally over. George Bush and his team of brilliant economists have delivered a REAL boom. And he did it without having to overpay a bunch of snotty programmers.

Good work, Mr. Bush!

Yeah, I bet all the gurus in treasury bonds since 1999 are still patting themselves on the back.

...and we're spending $2B a week in Iraq...

Actually, the market is predicting Republican wins next month.

Anyone know how often the market is right? Let's hope it is this time!

And China owns most of our ever-increasing debt, but don't worry...be happy!

http://z.about.com/d/top40/1/0/1/8/mcferrin1989.jpg

And we have billions - if not trillions - of RE loans on the brink of default

Please do not post any good news in the future, especially economic.

The "cut and paste" crowd on the OT are so busy drooling over themselves and hoping that they have finally found a way to win an election (as they have no platform and few leaders running) that they cannot be bothered by anything other than bad news.

Am just really, really glad that I bought nice stable stocks back in the 90's and has been doing very well.

SBD! SBD! SBD!

Or something...

The market does what the market does. Nice to know I made money today while I was downtown getting my flu shot...:)

Re: Dow closes at Record High
 

You know whats weird? I was just thinking of how the car craze is starting all over again(Cuda's going for seven figures)). Personaly, in a few years, I'm going to pull completely out of the market. Things are nuts, and I think its gonna go back down in a big way. naturaly, the president it goes down for will be blamed, so perhaps I might vote democrat... :p

When the Dow gets back to breakeven in real terms, we can start the high fives. Until then, I remain the lone skeptic.

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 :D.

Aurel

Then why did all my 401k investment funds drop by +/- 0.75% yesterday. Goddammit! :grr:

it's not a profit until you realize the gain.... profit on paper is just that.

I wanna' be president so I can piss $2,000,000,000 a day down the drain and be told "good job".

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?

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

Enlighten us, silver spoon boy.

With the RISE in Fed Interest rates...Mortgage Interest rates have risen...deflating the RE Bubble.

In May the Fed caused the Margin Rate on Commodities to be raised..thus increasing the risk to reward ratio for speculating in oil futures and energy stocks...which has brought the unwinding of the price of oil...

The DOW Jones AVG if looked at over the past 5 years from high to high is FLAT....so if it was overpriced 5 years ago EXCELLENT corp profits have caught up with the price and made the stocks cheap by todays price.

After a Midterm Election the Stock market has a habit since WW2 of ogoing up 18% to 25% in the year after regardless of who wins the election, it usually climbs more if Gridllock ensues..since neither party has an advantage.

With the decline in the RE, Oil, and Bond mkts (price of Bonds goes down when Interest rates rise) money goes to the least risk to reward ratio and that is the Stock Market...

The Chinese use our Bonds to stablize their currency. The rest of the world views America as a safe haven in times of crisis and thus buy our bonds which is the reason why interest rates have not climbed through the moon, with a $7 Trillion debt...and $200 B defceit. So the $$$ has declined in value over the past coupla years which U might say is another way of financing the war on Terror.

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.

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

LMAO

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.

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

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...:rolleyes:

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.

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.

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...

Thank U Legion....

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

If they do, I'll need more ammo

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

http://forums.pelicanparts.com/showthread.php?s=&threadid=279144&highlight=gas+pr ices

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

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.

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.

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

Aurel

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.