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Look at how it recovered from March 2009 to present time.
The down market helps the younger folks who stay in the market by dollar cost averaging.
Quote:
Originally Posted by Mircea
Okay, so if the economy is growing at 12.5% per quarter then why would the stock market collapse?
That actually happened.
The stock market broke records during the recession which ended in June 1929. The stock market started collapsing in September (and fell apart in October) while the economy was recovering and growing.
Then when the Republicans raised taxes, that threw country back into recession and the stock market recovered.
Then the Democrats repealed the taxes and the economy started recovering, but the stock market collapsed (again).
And you played that game all through the 1930s right up to 1942.
And while the economy floundered during the 1959-1961 recession, your stock market broke records, then when the economy recovered, your stock market collapsed (and lost 25+% of its value).
Ever since your stock markets were founded in 1896, that has been the case throughout your history.
I would even suggest that if you are looking for a signal to the end of this current recessionary period, look for the stock market to collapse about 40%-50%, and the longer the stock market suffers, the stronger your recovery will be.
The stock market has never been an indicator of the health of the economy. It only shows you where investors believe future profits will be made and where Capital may be reallocated (and I'm talking about serious investors -- not Joe McTrader).
At any rate, corporations can do quite well while the people suffer in this country. As long as they axe enough people, they can turn a profit even with reduced sales. There are always workers in India and China to reduce labor costs as well. Aside from that, companies like GE record huge sales in foreign markets these days, so America is becoming less important in the global market.
I repeat, the market ended flat. The NASDAQ did not even gain 1 full point. The week might have ended great, but that all happened BEFORE the unemployment numbers came out. The unemployement numbers had absolutely nothing to do with the stock market. If it really did, you would have saw at least a 100 + point close on Friday. That didn't happen.
The more employment there is, the more people will buy shares.
Well, THAT does not bode well for your stock market.
But no matter to me, either way.
I do not buy shares whether working or goofing off.
But why do you?
Only folks I can remotely see any sense in doing that would be day-traders and the folks who are forced into by employment conditions / 401K, etc.
I have a 401K and Roth IRA so I can retire early and live a lavishing life in retirement. I also have a after-tax account that I trade. There is lot of money to be made. You can make money in any type of markets.
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