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Agree Fred, who would have taken that bet back at the first of the year ? Just means more money for more toys !!!fredsheldon wrote:The stock market hit an all time high of 16,000. At least somebody thinks the country is going in the right direction. That's a 10,000 point rise since the current administration came into office. Say what you want but I'm optimistic about the future as are millions of investors. Sure, some things need fixing but I'm sure they will be.
fredsheldon wrote:The stock market hit an all time high of 16,000. At least somebody thinks the country is going in the right direction. That's a 10,000 point rise since the current administration came into office. Say what you want but I'm optimistic about the future as are millions of investors. Sure, some things need fixing but I'm sure they will be.
dickg1 wrote:Unless I am grossly mistaken, the rise in stock prices is directly attributed to the near zero Fed interest rate and the Fed QE (quantitative easing). It certainly is not an attribute of a growing economy although the administration touts a surprise last quarterly rate of about 2.5% annual.
The Fed is keeping the interest rate artificially low so that the administration and congress can continue their spending spree unabated - thereby increasing the debt beyond all reason. With the interest rate as low as it is we are able to pay the interest on 17 trillion without too much pain. Let us hold our enthusiasm on a meteoric rise in the DOW for at some point interest rates will rise. As I understand it, our current debt service runs about 35 billion a month. If current rates mearly double (a very small %) our debt service will increase substantially.
The underlying factor in the DOW is cheap (fiat) money. At some point that cheap money will go away. (Remember 1929 - the reasons are different but the end result will be similiar).
The millions of investors are the major banks and investment companies. They borrow money from the Fed at a near zero rate, invest it in the market on a short term, skim off their profit and pay back the Fed. That is another reason the market is soaring. The individual investor can go for the ride, but should be prepared to jump.
Dick
Dick
Ed,Ed in Tampa wrote:I totally agree and I would prefer the jump not to be off a tall building.
I can almost guarantee when it hits the fan it will be the little guy playing in the market that will be the cannon fodder.
If I could predict that I would not be wasting my time chit chatting on this forum. But you can be sure it is on the way.fredsheldon wrote:Ed,
Can you tell me when you think it will hit the fan so I can pull all my retirement money out of my IRA's. I would hate to miss out on future growth by pulling out too soon, especially since I have more than doubled my investment so far and am sitting in a much better position than I was 6 years ago.
Fred
Looks like it couldn't hold on to it by end of market. Just a matter of time and it will hold for sure !fredsheldon wrote:The stock market hit an all time high of 16,000. At least somebody thinks the country is going in the right direction. That's a 10,000 point rise since the current administration came into office. Say what you want but I'm optimistic about the future as are millions of investors. Sure, some things need fixing but I'm sure they will be.
Alas, many people confuse the stock markets or Wall Street with our economy. Couldn't be further from the reality.dickg1 wrote:...
The millions of investors are the major banks and investment companies. They borrow money from the Fed at a near zero rate, invest it in the market on a short term, skim off their profit and pay back the Fed. That is another reason the market is soaring. The individual investor can go for the ride, but should be prepared to jump. DickDick