Dow up over 1100 points in last two sessions!
- Thread starter NJPSU
- Start date
Yep unemployment down, GDP soaring, stock market near all time highs. Joe is doing a hell of job with the economy.
And we're still below where we were on Nov 24th. It took 1100 pts to recover just part of what we lost over the prior week.
Let's Go Brandon!
The stock market highs are only good if it is real growth. In other words, the valuations need to be adjusted for inflation. It is way, way too early for this, as I have noted many times here. Inflation has not worked its way through the economy yet.
The real issue isn't the market highs. It's the negative return on bonds. That says things are not as good as you think, as all we are doing is robbing one asset class to prop up another asset class.
And "propping" is exactly what is happening here. Many businesses should fail but are floating on easy money, i.e., negative real interest rates. They are going to get squeezed by inflation. Once the easy money ends then it will be a matter of choosing winners over losers. That's when investment gets difficult.
This Fed has decided to ignore controlling inflation, probably for political reasons. The market would not be anywhere near where it is if we had normalized interest rates. It's a house of cards being propped up through printed money. Real productivity is not in line with valuations.
There are always been stock winners and losers, nothing different today. Just let it play out.
We are only 1% off all time highs. Market is up almost 35% since the election.
'
LOL. if you idiot Dems wouldn't be running around with your hair on fire with every Covid variant the market would have never sold off like it did.
It's just a matter of time before the markets really dive when the Fed starts talking away the punch bowl next year. It's already happening in the casino called crypto.
They would rather complain about spending an extra $3 to fill up their tank. Meanwhile guys like us are getting rich in this market.
As long as he keeps throwing a few extra trillion at it each year and he gets the fed to buy bonds and keep interest rates near 0.
The economy would never have tanked like it did if the government hadn't shut much of it down.
You mean when Trump was President and pretending Covid would magically disappear before the election?
“It’s going to go away, hopefully at the end of the month. And, if not, hopefully it will be soon after that.”
President Trump
March 31, 2020
https://www.cnn.com/interactive/2020/10/politics/covid-disappearing-trump-comment-tracker/
The real issue is this: What would valuations be with inflation controlled at 2%.
That would have taken positive real rates, and this market would be no where near where it is.
The market was propped up by the corrupt use of the word "transitory."
That would have taken positive real rates, and this market would be no where near where it is.
The market was propped up by the corrupt use of the word "transitory."
We are 10 - 12 years into a bull market and the “transitory” debate didn’t exist for 99% of it.
I wouldn't disagree with anything he says, but the topic is about valuations. In my view, without the "benefit" of inflation, the market is at least 50% overvalued. I would expect prices to rise to match asset valuations as the most politically expedient way to deal with rising debt. Write if off through the inflation tax.
We don't even have a leveling of debt/GDP, so all of the nonsense you post thanking Brandon when markets inflate is just unsubstantiated fluff. Fact is, they've printed and distributed so much cash that it has had no place to go. When real yields on long bonds are grossly negative, and not much above cash, we are in very dangerous territory.
Again, print enough cash and there is no place for it to go. The world is unstable now with Russia, China, Iran, and North Korea flexing their muscles. Emerging markets would otherwise be attracting that capital. That's what I would do if it were not for the risk.
The world isn’t any more unstable now than it was when Trump was threatening foreign nations over Twitter while taking a dump. Trump’s own Generals thought Trump had made the world so unstable they had to call our enemies to assure them he wouldn’t blow up the world.
China wasn't threatening Taiwan. And Russia wasn't amassing troops on the Ukrainian border.
They would fear Trump, whether he is mentally stable or not. What we have now is incompetent weakness. Even Biden's own party want to take the nuclear football away from him. They know he has dementia.
Conflict will ignite during the Biden Administration, because this group doesn't have any guts. And it just might be WW3. The Dems think they can get the Taliban to change by emboldening them. Same with Iran.
Every policy so far has been wrong. We have growing inflation, crime, trade deficits, budget deficits, spiraling debt/GDP, lost international respect, and now international threats of war as a result of installing a man that cannot complete a thought long enough to complete a sentence. The world is watching this. They are laughing at a country that hampers its own clean natural gas production while begging for more dirty oil out of OPEC.
Your defense of this guy indicates that you are more of an ideologue than an American. Your party is not going to create Utopia by dreaming about it. We can edge closer through sound policies, but this group has none. Not one. And that in and of itself is unprecedented. Very scary. There isn't a single thing they have done right, other than appease a bunch of special interest groups through Affirmative Action hires at the highest positions. Again, another idiotic, political move that creates damage.
Huge negative real interest rates. That is a sign of extreme economic weakness, not strength. That should have been very brief. (Remember "flatten the curve" before Dem governors started shutting things down.)
This administration has prolonged bad economic policies. The longer we stay this way the worse it gets.
And pray tell, how were you going to force people to go to work, at that time NOBODY had any information on this virus, the govt didn't shut it down, the worker did ?
Yet, we are only up 10% since Biden took office. Given the Trump vaccine, and businesses were allowed to reopen in 2021, most people would expect the market to increase.
The market increased despite Biden, not because of him.
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Workers shut down the economy? Really? Filthy Frank, you should really try to get out of your basement once in a while.
That’s total right wing propaganda. The fact of the matter was the world was a much more dangerous unstable place when the Orange turd was in power and running foreign policy based on his mood swings.
Propaganda? It's just a coincidence the Russia has now moved toward Ukraine? That China is testing hypersonic missiles? That North Korea is also testing weapons?
North Korea was testing weapons under Trump. Trump was doing Putin’s bidding for 4 years. Trump was terrified of the man. China testing missiles is a ridiculous nothing burger. China already has the capability to blow up the Earth.
Just reverse what he says and it suddenly becomes not only logical, but closer to the truth.
It's pure TDS when someone cannot talk about current events without fixating the whole response on Trump.
You guys have zero credibility on the topic because you use the same talking points everytime a Democrat is in the White House while completely ignoring the fact that Trump was Putin’s puppy for four years.
Not hard to do after the country had been shut down for so long. A monkey in office would have done just as well. Oh, wait, a monkey is what we have in office. My bad.
Trump increased sanctions against Russia and armed Ukraine.
Obama told Russia he would have more flexibility after the election, allowed Russia to take Crimea, and sent blankets to Ukraine.
Now Biden is president and Russia has moved troops toward Ukraine.
Your analysis: Trump was Putin's puppy.
My analysis: You're a clueless lemming.
The markets are not open yet.
Futures are down.
You must be living yesterday's dream.
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