Why Is The Stock Market Doing So Well In A Bad Recession?

cawacko said:
I don’t know how many times this has to be repeated, the stock market isn’t the economy. You started the thread about the stock market and why is it performing like it is.
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Well neither is the unemployment, or the inflation, or the debt...but it is a part of it, and the notion is that it is a reflection of the value
Americans place on businesses. Though that's not true anymore with all the derivatives, index funds, people shorting stocks ect.

The OP is righteous in noting that the stock market is an outlier economic indicator. Everything else is shit. And if everything else is shit, how can
people believe Americas publicly traded businesses are worth this much. It's a good question.
 
Hello cawacko.

cawacko said:
I don’t know how many times this has to be repeated, the stock market isn’t the economy. You started the thread about the stock market and why is it performing like it is.
Click to expand...

I am not arguing that the stock market and the economy are the same thing. They are certainly related.

I am guessing that what we are seeing is simply a lag time effect. I think the stock market is going down and it's just a matter of time until the dam breaks. You know the market. Goes up gradually but comes down like a ton of bricks.
 
Micawber said:
Well neither is the unemployment, or the inflation, or the debt...but it is a part of it, and the notion is that it is a reflection of the value
Americans place on businesses. Though that's not true anymore with all the derivatives, index funds, people shorting stocks ect.

The OP is righteous in noting that the stock market is an outlier economic indicator. Everything else is shit. And if everything else is shit, how can
people believe Americas publicly traded businesses are worth this much. It's a good question.
Click to expand...

Most Americans are not invested in the stock market. And if they have a company retirement plan they still are not managing their portfolio.
 
PoliTalker said:
Hello cawacko.



I am not arguing that the stock market and the economy are the same thing. They are certainly related.

I am guessing that what we are seeing is simply a lag time effect. I think the stock market is going down and it's just a matter of time until the dam breaks. You know the market. Goes up gradually but comes down like a ton of bricks.
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Mostly because of Trump. A fluctuating market is a sigh of financial instability.
 
Micawber said:
I just paid a million cash for a house. :dunno:
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I’d personally rather put money in real estate than equities. There could be a wave of foreclosures hitting the market in six to nine months and people sitting on cash will be in a great position to find value opportunities.
 
Concart said:
This round of QE is simply intended to increase short term liquidity. Nothing more. The Fed buys longer term bonds, but the money is placed directly into excess reserves. It enters the money supply only when a bank chooses to lend that money or the bond matures.. Until they do, the money remains in excess reserves, and the Fed has discouraged lending from excess reserves by paying interest on them. I believe that practice is still in place. If it's on the Feds balance sheet it isn't in the money supply.
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I don’t know you (well I’m assuming I don’t know you in the real world) but I’m guessing there’s an ideological reason why you don’t want to discuss previous QE’s and what the Fed is doing right now and how it’s affecting the stock market.
 
cawacko said:
I’d personally rather put money in real estate than equities. There could be a wave of foreclosures hitting the market in six to nine months and people sitting on cash will be in a great position to find value opportunities.
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Our thinking had everything to do with rooms, baths space, top schools and proximity to playmates for my kid.
And the fact that if everything goes to shit, we both get fired, the stock market crashes and unemployment is at 25% we still have a house free and clear and can rent one out for income.
There were 10 offers, only two all cash. It was on the market only three days. The market is white hot in that zip and inventory low.

5/3, pool 12,000 ft lot, top schools, and an outdoor kitchen with a beer tap!:)
 
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PoliTalker said:
Hello cawacko.



I am not arguing that the stock market and the economy are the same thing. They are certainly related.

I am guessing that what we are seeing is simply a lag time effect. I think the stock market is going down and it's just a matter of time until the dam breaks. You know the market. Goes up gradually but comes down like a ton of bricks.
Click to expand...

You certainly hope that the stock market goes down.

You cheered the economic loss by millions of Americans and their families caused by the virus from China that China failed to contain.
 
Micawber said:
Our thinking had everything to do with rooms, baths space, top schools and proximity to playmates for my kid.
And the fact that if everything goes to shit, we both get fired, the stock market crashes and unemployment is at 25% we still have a house free and clear and can rent one out for income.
There were 10 offers, only two all cash. It was on the market only three days. The market is white hot in that zip and inventory low.
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People (often rightly) say don't view your personal residence an investment and of course what they mean is what's most important is what you just described.

I was speaking from more of a strictly investment perspective outside the home you live in.

In the Bay Area prices in SF are dropping (at least for condo's and homes without outdoor space) and action in the suburbs is booming.
 
cawacko said:
People (often rightly) say don't view your personal residence an investment and of course what they mean is what's most important is what you just described.

I was speaking from more of a strictly investment perspective outside the home you live in.

In the Bay Area prices in SF are dropping (at least for condo's and homes without outdoor space) and action in the suburbs is booming.
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Yes I'd imagine this new one here would be 3 million there. With silicon valley in the house your prices will remain sky high...
 
cawacko said:
I don’t know you (well I’m assuming I don’t know you in the real world) but I’m guessing there’s an ideological reason why you don’t want to discuss previous QE’s and what the Fed is doing right now and how it’s affecting the stock market.
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The effect is entirely psychological. The market responds to QE because it's good for the economy. Economics knows no idealogy. This is simply fact based. QE does not put more money in the money supply. It provides short term liquidity to banks. Banks won't tap it unless they have to. The ideological argument about QE is the that the Fed is 'printing money', but that completely oversimplifying things.
 
Earl said:
You certainly hope that the stock market goes down.

You cheered the economic loss by millions of Americans and their families caused by the virus from China that China failed to contain.
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She's a despicable excuse for a human being, truly odious.
 
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