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

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.

5/3, pool 12,000 ft lot, top schools, and an outdoor kitchen with a beer tap!:)
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I've convinced my wife that now is not the time to buy. I agree the market is hot, I think it cools in November/December, my portfolio should have fully recovered, and we are downsizing with an eye entirely to location. I expect that late this year early next year we'll be able to make a steal on a home. We're probably in a unique situation, we'll almost certainly be paying cash, so I don't care about the interest rate.
 
Concart said:
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.
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We had the worst economic recovery since the Great Recession. It wasn't a booming economy that drove the stock market. We are in a recession today and have a booming stock market. It's not economic fundamentals that are driving equities. On top of that QE and low interest rates punish savers and force people to find riskier investments for yield. That's just a fact. It pushes bubbles (just as it did in housing).

I'll admit I'm not smart enough to figure out why you are taking the position you are other than it's ideologically (politically partisan?) related.
 
cawacko said:
We had the worst economic recovery since the Great Recession. It wasn't a booming economy that drove the stock market. We are in a recession today and have a booming stock market. It's not economic fundamentals that are driving equities. On top of that QE and low interest rates punish savers and force people to find riskier investments for yield. That's just a fact. It pushes bubbles (just as it did in housing).

I'll admit I'm not smart enough to figure out why you are taking the position you are other than it's ideologically (politically partisan?) related.
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Oh please. You think that worn out trope is anything but partisan? The recovery from 2008 was just fine.

So tell me, and be specific, how QE 'punishes savers' and forces people to find riskier investments for yield. Specifically. Tell me the cause, instead of parroting something you read. Show me you actually understand it, because I see no evidence that you do.
 
Micawber said:
Money sloshing around needs to be some where. Bonds offer zero return.
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I placed several put contracts on ETF's about two months ago because the market is so overvalued. As of today my annualized return is 9.64%.
You're right about bonds though. So far my return on closed end bond funds is 5.66%, the lowest.
 
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Hello Concart.

Concart said:
Oh please. You think that worn out trope is anything but partisan? The recovery from 2008 was just fine.
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THANK YOU! Of course it was. There is no 'instant recovery' from a crash like that. It was a responsible recovery which took time to build. As it should. There is no instantly putting together a strong economy. We are in the process of finding that out. Every foreclosure, eviction, job lost that's not coming back, and bankruptcy just makes any hope of a quick recovery all the more fleeting. Trump bungled the pandemic, and the resultant crashed economy is real and lasting damage.

And it is all Trump's fault!
 
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PoliTalker said:
Hello Concart.



THANK YOU! Of course it was. There is no 'instant recovery' from a crash like that. It was a responsible recovery which took time to build. As it should. There is no instantly putting together a strong economy. We are in the process if finding that out. Every foreclosure, eviction, job lost that's not coming back, and bankruptcy just makes any hope of a quick recovery all the more fleeting. Trump bungled the pandemic, and the resultant crashed economy is real and lasting damage.

And it is all Trump's fault!
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Did Angela crash the German economy? Who is responsible for crashing Spain's economy? How about Finland's?
Your post is really no different than anatta's
 
Concart said:
I've convinced my wife that now is not the time to buy. I agree the market is hot, I think it cools in November/December, my portfolio should have fully recovered, and we are downsizing with an eye entirely to location. I expect that late this year early next year we'll be able to make a steal on a home. We're probably in a unique situation, we'll almost certainly be paying cash, so I don't care about the interest rate.
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We were planning on moving to Washington but all is on hold now. It's been a long time since metro Seattle has had a recession. I think they even did pretty well in 2008 if I remember correctly. If this brings Boeing down we might get a deal in Skagit Valley or Bellingham later.
 
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Concart said:
I've convinced my wife that now is not the time to buy. I agree the market is hot, I think it cools in November/December, my portfolio should have fully recovered, and we are downsizing with an eye entirely to location. I expect that late this year early next year we'll be able to make a steal on a home. We're probably in a unique situation, we'll almost certainly be paying cash, so I don't care about the interest rate.
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The best laid plans of mice and men oft go awry. Time will tell if I erred.
 
Concart said:
Oh please. You think that worn out trope is anything but partisan? The recovery from 2008 was just fine.

So tell me, and be specific, how QE 'punishes savers' and forces people to find riskier investments for yield. Specifically. Tell me the cause, instead of parroting something you read. Show me you actually understand it, because I see no evidence that you do.
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Your response, plus Rana thanking the post, shows me this is 100% partisan. Blame Republicans 100% if you want, that doesn't change the fact this was the slowest economic recovery since the Great Recession. That's just a fact, not a trope and not partisan. It's not like it hasn't been discussed for years. I'm not saying something out of line. Usually I would post articles backing my point but in this case it's something you know already so google yourself if you want reinforcement.

What I wrote is pretty clear regarding savings. I've seen others argue QE doesn't hurt savers. If that's your position state so.
 
I'm still stuck on "worst ecomonic recovery"

We need to thank our lucky stars and pray Biden delivers another "worst economic recovery" after you shitstains fucked the world over....y-e-t a-g-a-i-n.

How fantasmagorical is a recovery from the deepest economic global recession in history supposed to play out? Is there some playbook I can read?
 
PoliTalker said:
Seems a bit baffling.

It's like nobody told Wall Street there is a serious recession going on.

There is lots of bad economic news out there, but investors don't seem to care.

Is it only a recession for vulnerable disadvantaged people?

Have the big corporations they invest in figured out how to make money no matter what happens to the powerless?

How long can that go on?

Are we inching closer to a big crash when the human support mechanisms for all this wealth extraction begin to crack and fail?

Will there be an 'October Surprise?'

Please explain, thanks.
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It’s easy, there is a lot of money out there, the GOP and right has sided with the Democrats and gone Keynesian, ain’t a lot of cry’s of “porkulus” out there these days
 
Micawber said:
I'm still stuck on "worst ecomonic recovery"

We need to thank our lucky stars and pray Biden delivers another "worst economic recovery" after you shitstains fucked the world over....y-e-t a-g-a-i-n.

How fantasmagorical is a recovery from the deepest economic global recession in history supposed to play out? Is there some playbook I can read?
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Because you can't think of it from anything other than a partisan political perspective. The numbers are the numbers. Blame whomever you like for it but that doesn't change the numbers and where this recovery ranks compared to others. Those are just facts.
 
Grajonca
Insane Level of Addiction

This message is hidden because Grajonca is on your ignore list.


Why that's the slowest and most awkward gold medal Vasily Alekseyev ever cleaned and jerked for Russia!
 
cawacko said:
Because you can't think of it from anything other than a partisan political perspective. The numbers are the numbers. Blame whomever you like for it but that doesn't change the numbers and where this recovery ranks compared to others. Those are just facts.
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Bullshit from the first sentence. Conceded on the second, mollified by the fact that when you inflect an economy YOU WON, and the prior poor prick was a LOSER.

Gee, that was the worst superbowl ever won. My very most lackluster gold medal. My slowest, most soporific first billion $. That Georges de latour tastes hardly any better
than that two buck chuck.... Shall I go on?
 
Micawber said:
Bullshit from the first sentence. Conceded on the second, mollified by the fact that when you inflect an economy YOU WON, and the prior poor prick was a LOSER.

Gee, that was the worst superbowl ever won. My very most lackluster gold medal. My slowest, most soporific first billion $. That Georges de latour tastes hardly any better
than that two buck chuck.... Shall I go on?
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Only you know deep down but my statement isn't bullshit at all. Democrats are defensive because Obama was President and Republicans want to jump on it to point out Obama's failures. You can't avoid that the partisan aspect of it.

But sit down with economists and discuss economic recoveries and how they rank (nothing political) and this is what the numbers say.

At the end of the day there's such a bigger problem out there that this recovery is indicative of but it rarely gets discussed because political partisanship is more important.
 
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