Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,792,165 times
Reputation: 3587
Advertisements
I just do not understand what the heck is going on with the stock market. The news is good, corporate earnings are up and oil is falling. So why is the Dow still falling? This makes no sense to me at all! It seems that all the big traders must be stuck on stupid or something.
I just do not understand what the heck is going on with the stock market. The news is good, corporate earnings are up and oil is falling. So why is the Dow still falling? This makes no sense to me at all! It seems that all the big traders must be stuck on stupid or something.
The Dow is overpriced, IMO. Costs 11 ounced of gold to buy the index, when it only cost 1 ounce in the 70s. They should track at about 1-to-1 or 2-to-1 just like it did before.
The P/E ratios are too high and even with the ones that are low, their earnings expectations are very bleak going forward.
There is still a lot of unrecognized bad debt floating around in the financial sector that is off the books, much more than what caused some of them to go bankrupt. Investors know this and weary of investing because once it comes out (i.e. the companies can't hide it anymore), its game over... why invest in a market ridden with hidden risks of the subprime mess? So the good news means little when the bigger picture is one with a big fat bear trashing the DOW...
whoa, wait a minute. You mean people who actually understand investing look at more than what has gone on for the past week?
It's a crazy thought eh. I'll never understand how people can only look at earnings or whatever and announce definitively, the news is good. Sometimes you have to stop and look around. I guess it's the difference between being book smart and street smart.
The DOW has had a lot of resistance around 11,200 this year. If you see it significantly above or below that number, there's a good chance that a correction isn't too far away.
In this case, it went really low, and with a little good news values jumped up further than they should have. Now that its back to 11,200, I'm guessing that it will see resistance here again.
The short sellers are hammering good companies with unprecedented use of "naked shorts." The SEC just sits on the sidelines and lets unscrupulous profiteers rape American companies and join in a feeding frenzy in driving nearly every bank toward a zero value.
The overhead resistance is so strong and the short hammering so harsh that investors who had been in some of the banks and now insurance companies are being shaken out because they have seen DECADES of equity erased in the past 6 to 9 months.
Wake up America! This has happened before. Fortunately for us 100 years ago we had Teddy Roosevelt, a man of principle and passion, as president. He deplored the lazy, destructive actions of his privileged-class members. The following quote from Theodore Roosevelt, Preacher of Righteousness sums it up:
"No man is worth much anywhere if he does not possess both moral and physical courage." Apparently a great many of his own class no longer did. They were too busy "speculating in stocks and wrecking railroads," while allowing their sons "to lead lives of expensive idleness and gross debauchery."
What eerie parallels. Now we have speculating in commodities and wrecking banks. Many of the regulatory safeguards that Roosevelt instituted or strengthened have been weakened or erased over the past 20 years and the same corrupt behavior rerears its ugly head through a series of complicated financial "exoctics" designed to relieve the average person of what little money they have managed to put into their 401k (another sore subject of organized manipulation of other peoples' money, think IndyMac).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'll never understand how people can only look at earnings or whatever and announce definitively, the news is good. Sometimes you have to stop and look around. I guess it's the difference between being book smart and street smart.
