And the Stock Market goes up?? Can you say disconnect?

[dumpster56]

http://www.nytimes.com/2008/02/26/business/26econ-web.html?hp

http://www.nytimes.com/2008/02/26/business/26gas-web.html?hp

These two issues are the big time issue that may drive the stock market off a cliff..

Oh maybe when a bank goes belly up later this spring.. Hummm Maybe Citi Bank??

The bond markets??

The rosy picture is well not so sweet.

By the way what would really happen to the american economy IF the oil producing countries decided they wanted payment in Euros??

Bloomberg.com: Worldwide

 

[Notmuchlonger]

Its the end of the world as we know it. And I feeeeeel fineeeee... O0O0

 

[dumpster56]

Its the end of the world as we know it. And I feeeeeel fineeeee... O0O0

Thanks, Me not worried at all. Just wonder how the markets keep going up on bad news.

 

[Notmuchlonger]

Because its forward looking and it sees milk and honey on the horizon. Full speed ahead!

 

[W2R]

Thanks, Me not worried at all. Just wonder how the markets keep going up on bad news.

Oh, I can explain that.

The news media would have us believe that investors decide whether to invest or sit on their money, on the basis of this or that news event. I don't know about other investors, but I, for one, do not invest on that basis. If other investors are like me, then the market just bumbles along as a random walk, and is as likely as not to go up on a bad news day.

 

[DblDoc]

If it was predictable then there wouldn't be any risk. Without risk no reward...

DD

 

[maddythebeagle]

You lost me at....linking an article from the NY times...God Bless America

 

[saluki9]

Thankfully "the market" doesn't take it's direction from the NY Times.

If it did, all investors would just turn their assets over to the government so that they can decide what a fair amount is for them to take and give to the less fortunate.

 

[TromboneAl]

I see short term changes are related to how people think people will think people will think people will react to news. Is that clear?

 

[cantlogin]

I see short term changes are related to how people think people will think people will think people will react to news. Is that clear?

Yes Al, as usual.

 

[CuppaJoe]

I have no idea.

What is the effect of all the folks trying to beat the IRS deadline to fund IRAs and such; you know the baby boomers who have been told that the stock market is the way, the truth, etc., the only way to catch up and live happily ever after in retirement.

 

[jIMOh]

Money in sidelines could be coming in slowly (as cash like CDs mature). The market will go up if more people are willing to buy with new money.

Institutional buying will also probably drive prices up. I am sure some value managers liked the recent valuations and went in with their new money.

 

[ronin]

Record short interest. Short covering on rallies off the previous bottoms.

 

[Keopele]

What TromboneAl said.... Bernake says one thing one day, markets fall. Bernake says one thing the next day, markets rise. Ductape anyone?

 

[Midpack]

At this point that's all very old news that has already been factored in, even though most people don't grasp this, "same as it ever was." Remember this very old investing pearl, "something that everyone knows isn't worth knowing."

And along W2R's lines, I'd like to believe there are more knowledgeable investors in the buy-n-hold camp than traders these days. Imagine that, less volatility with more return for equity holders and less for brokers, it's a revolution!

 

[Dawg52]

I've heard many so called experts say recently 'when the stock starts to go up on not so good news, the market has finally hit bottom'. Well, could this now be the case? Or maybe a dead cat bounce.

 

[Midpack]

What comes after the dead cat bounce anyway?

 

[ziggy29]

Short term traders playing on interest-rate momentum.

 

[Dawg52]

What comes after the dead cat bounce anyway?

A funeral for the cat?

 

[CuppaJoe]

A funeral for the cat?

We always do an Irish wake with lots of Bailey's. All dead cats are Irish.

 

[Razor]

Short term traders playing on interest-rate momentum.

Yeah