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It's amazing how uneducated people are about markets, yet hold strong opinions.
This is a correction. It is a natural part of a market economy. It's nothing to freak out about; just brings prices back closer to their actual value rather than an inflated value.
We were overdue for a correction. It's nothing like the bottom falling out of the market like in 07-08.
If they don't understand what they're doing, then they need to find other investment vehicles.
Quote:
Originally Posted by Wally Sconce
Wrong the stock market is the predictor of future employment gains or losses... look it up. The market falls unemployment rises and vice versa. Macroeconomics 201.Your posts prove you are just a partisan hackey - do.
Quote:
Originally Posted by bmw335xi
It actually is a pretty good indicator of the economy because most stocks rise and fall based on EPS over time. Not to mention all the millions of Americans invested whether direction or through their 401k etc.
The Stock Market is not an indicator of the economy.
#1 The stock market loses 40.9% of its "value" over a period of 959 days. Characterize the state of the economy during that time.
Spoiler
GDP growth was averaging an astounding 12.5% per quarter
That actually happened September 1939 to April 1942
If you said the economy was performing in any way less than stellar, you failed.
#2 The stock market sets records over a period of 651 days. Characterize the state of the economy during that time.
Spoiler
That was the 3rd and final recession of the Eisenhower Administration, and the final recession of the Great Depression, which ended in 1961.
The DJIA doubled in value from 250 to 500+.
This is proof -- one of a dozen examples where they stock market soared, while the economy tanked.
Another famed occurrence was the 1928 Recession -- which ended June 1929 and the stock market started crashing, with a huge crash in October 1929.
#3 The stock market loses 45.1% of its value over a period of 694 days. Characterize the economy.
Spoiler
That was January 1973 to December 1974 US GDP grew at rates of 1.03% per quarter to as much as 3.77% per quarter, averaging 2.24% per quarter over those 8 quarters.
While the economy wasn't stellar, it was still average or slightly better by any benchmark.
Historically speaking that isn't the case...... Historically speaking.... civil unrest, violence, and anarchy occurs when people get tired of the punishment.
We just have water on tap, lots of shelter, and mechanized agriculture/super markets now so social darwinism isn't the same type of motivation as it use to be. In the span of around 150 years, we innovated and technology has progressed to such an extent in this country and Europe that technology took care of the basic needs that made life so short and tough by every measure. Not to long after a small chunk of the world followed and now it's spreading to the rest. Open your eyes and you'll see the forest from the trees. New solutions for new times.
depending what happens with the market in the next few months, but most of us know, what happend this past week was simply a correction. I wish it was all gloom and doom, but I don't think it will affec the election. Other things will bring the Dem down though.
It's not so much the stock market correcting that is the problem, it's the recession that many think is coming that is going to hurt the Democrats in 2016.
It shouldn't effect Hillary or the Dems election chances since the Congress is a greater factor but most of the voting public are idiots when it comes to analyzing political matters and its effect on the economy...so probably.
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