Dow industrials

tonypeoni · 11-14-2009, 02:57 PM

With job-loss expected to grow and the concentration of this surge in the economy going back to Wall Street is history repeating itself?

Great Depression:
The economy produced more than it consumed, because the consumers did not have enough income. Thus the unequal distribution of wealth throughout the 1920s caused the Great Depression, wages increased at a rate lower than productivity increases. Most of the benefit of the increased productivity went into profits, which went into the stock market bubble rather than into consumer purchases.

dan88911 · 11-14-2009, 10:23 PM

I don't believe so. The economy and the world is much different now.

dan88911 · 11-15-2009, 10:15 PM

" The six-month period ending August 31, 2009, was the best stock market rally since October 1933 (aka the Great Depression). During those six months, the Dow Jones Industrial Average climbed 34.5%, the S&P 500 Stock Index rose 38.8%, and the NASDAQ soared 45.8%."

trader220 · 11-19-2009, 02:07 PM

A jobless recovery? Do you believe in Santa too? Sorry but the massive spending by the govt and the silly artificial low rates may have propped up the stock market in the short run. Look at the quality of earnings, look at top line vs. bottom line growth. Yuk.

Want something really scary? Look how quickly we forget... the risk premium in equities is a joke right now ( before today’s drop) The vix is at a level which for a decade was considered the near bottom in it and it’s as if no one cares about the downside.

Yea cash stinks, yield blow, and I got out of all my longs by the end of August. Did I get the top? Heck no, but I don’t care.

RWebb · RWebb's Garage

bump!

dan88911 · 03-05-2013, 06:39 PM

The Dow needs to rise 10% from this point to make for inflation.

kavvmxuh · 03-05-2013, 06:50 PM

The vix is at a level which for a decade was considered the near bottom in it and it’s as if no one cares about the downside.

Scott R · Scott R's Garage

Quote:

Originally Posted by kavvmxuh

The vix is at a level which for a decade was considered the near bottom in it and it’s as if no one cares about the downside.

Seniors and people that rely on investment income do.

Crowbob · 03-05-2013, 07:20 PM

I don't think its a bubble in the sense that an explosion or crash is imminent. I think the market will continue to rise and the general economy to stagnate even more. The market is no longer a measure of overall economic health.

In addition, when you consider the impending and dramatic devaluation of the USD, everything measured in dollars wil have to go up just to stay even. Eventually, when the dollar is no longer king there will be severe problems.

dan88911 · 03-05-2013, 07:23 PM

This is a new Dow.
If Washington would just get out of way.
These companies are sitting on a trillion in cash.

trader220 · 03-05-2013, 09:03 PM

The dollar has not been king for quite some time now.

The VIX is far from the VIX of old too. If you consider what the variables in the price of the VIX are and how much the nature of the markets in those variables has changed over the last decade you might reconsider comparing the current vix to the one we all traded off of up until the early to mid 2000's.