Stock market reaches all-time highs

A

Aruarian Reflection

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Due to strength of economy, not climate-related apparently

While many American were focused on the fallout from President Trump's decision to withdraw from the climate deal, market analysts said Thursday's march higher on Wall Street was linked to healthy signals from the U.S. economy.
"It's not because of the climate accord. People expected that," said David Kelly, chief global strategist at JPMorgan Funds.
Investors were instead fired up by a report from ADP showing the U.S. added 253,000 private-sector jobs in May. Wall Street is betting that's a very good sign ahead of Friday's more closely-watched government jobs report.
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http://money.cnn.com/2017/06/01/investing/dow-record-trump-rally-wall-street/
 
Aaand this is the reason Republicans think things are going well.
Money is coming in. More and more. Never mind that the long term effects are going to be disastrous. Gotta line our pockets and anal-pound the poor.
 
bounchfx said:
is it that surprising when every law we have is crafted to benefit businesses?
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Wages still going nowhere and people still having crippling debt.

This is definitely one of those things where you ask. What does this mean for your average person?
 
BatDan said:
Aaand this is the reason Republicans think things are going well.
Money is coming in. More and more. Never mind that the long term effects are going to be disastrous. Gotta line our pockets and anal-pound the poor.
Click to expand...

Republicans didn't think things were going well when the markets reached record highs under Obama either.

Point is, Obama couldn't help stagnating wages and Trump sure as hell won't.
 
News at eleven it keeps rising until it inevitably crashes sending us into an even greater depression where the rich will continue to get richer and the poor like myself will either be lined up and shot or starved out of existence fiscally just by the sheer state of living on a glorified carcass.
 
RoyaleDuke said:
News at eleven it keeps rising until it inevitably crashes sending us into an even greater depression where the rich will continue to get richer and the poor like myself will either be lined up and shot or starved out of existence fiscally just by the sheer state of living on a glorified carcass.
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Seems like a pessimistic post based upon a report that signals 250k jobs were added. Isn't that a good thing?
 
Enjoyed watching our index positions go up across the board today. I feel like a correction has to come any day given we're up like 8% YTD and it's only June.
 
therealist said:
Republicans didn't think things were going well when the markets reached record highs under Obama either.

Point is, Obama couldn't help stagnating wages and Trump sure as hell won't.
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Ah okay that makes more sense.

Yeah wages are barely going to change.
 
therealist said:
Republicans didn't think things were going well when the markets reached record highs under Obama either.

Point is, Obama couldn't help stagnating wages and Trump sure as hell won't.
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And unfortunately. That talking point is going to rapidly disappear from the right.
 
therealist said:
Seems like a pessimistic post based upon a report that signals 250k jobs were added. Isn't that a good thing?
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I haven't read the ADP jobs report, but what was the composition of those 250k jobs? High, medium, low wages? My money would be more short term, seasonal, low paying jobs accounted for the bulk of those jobs. That figure looks good on paper but you have to research it to find the true story behind it
 
Widdle Puppy said:
imaginary money just gained more value while in reality everyone is getting more poor.
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Markets are zero-sum, so any money that goes in just gets distributed between people. I don't really consider it imaginary, but it can be way more luck-driven than rewarding any skill.

The stock market isn't the problem - it's a very useful tool that plays a huge role in keeping things moving and stable. When someone needs to borrow money to start a business and move up in life, that money needs to come from somewhere, and the central arteries of that are the markets. The problem is the lack of sufficiently strong taxes to disincentivise accumulation and redistribute growth.

I'm pro-market, pro-bank-regulation, pro-taxes. :)
 
PS3GamerKyle said:
I haven't read the ADP jobs report, but what was the composition of those 250k jobs? High, medium, low wages? My money would be more short term, seasonal, low paying jobs accounted for the bulk of those jobs. That figure looks good on paper but you have to research it to find the true story behind it
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I don't know what the contents are, but you sound exactly like the Republicans souring on the good job reports during Obama's tenure.

This still has nothing to do with the post I quoted though. Kayhans post showed complete ignorance as to why the markets are up today.
 
Stock market rises on Trump's ability to ignore all sensible advice.

Only a matter of time before he gives into the overseas funds tax holiday, reduces corporation tax and strips more workers rights.
 
Kayhan said:
The Trump Effect.

The rich get richer and Wall Street is like "me likey"
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This is actually a symptom of the 08 bail-outs (not TARP, QE via the FED). If you look at a large amount of the "buying" it's mostly (large) companies taking advantage of the fact that money is "free" (near zero interest). Normally the money supply would've tightened by now, but the Keynesian monetary policy doesn't know what to do when the usual levels (interest rates) don't have a practical effect on the economy. Thus, the "stimulus" rates have remained for far longer than they should've.

If the rates were to ever go back to "normal" levels (they've been fucked ever since Greenspan), stocks would deflate substantially.
 
PS3GamerKyle said:
I haven't read the ADP jobs report, but what was the composition of those 250k jobs? High, medium, low wages? My money would be more short term, seasonal, low paying jobs accounted for the bulk of those jobs. That figure looks good on paper but you have to research it to find the true story behind it
Click to expand...

 
So another typical day really. It reaches records all the time.

mMwJN9y.jpg
 
Yoda said:
This is actually a symptom of the 08 bail-outs (not TARP, QE via the FED). If you look at a large amount of the "buying" it's mostly (large) companies taking advantage of the fact that money is "free" (near zero interest). Normally the money supply would've tightened by now, but the Keynesian monetary policy doesn't know what to do when the usual levels (interest rates) don't have a practical effect on the economy. Thus, the "stimulus" rates have remained for far longer than they should've.

If the rates were to ever go back to "normal" levels (they've been fucked ever since Greenspan), stocks would deflate substantially.
Click to expand...

The Fed is planning to raise rates over the next year until we're back at 3-4% for the first time since before Obama was President. Even knowing this plan, the stock market has been going up anyways.

The average bull market is 8.9 years in length, meaning the current one is now longer than average. However, on average bull markets are 5 times longer than bear markets. Think about that a moment. The stock market is, on average, at all-time highs five times longer than it is not. This is irregardless of the Fed's current monetary policy.

So the reality is: If the stock market isn't at all-time highs, it's actually unusual. The stock market is usually at all-time highs. Bear markets happen about every 8.9 years on average, but each bear market is about 5 times shorter than the bull markets which precede and follow it.
 
Unknown Soldier said:
The Fed is planning to raise rates over the next year until we're back at 3-4% for the first time since before Obama was President. Even knowing this plan, the stock market has been going up anyways.

The average bull market is 8.9 years in length, meaning the current one is now longer than average.
Click to expand...

That's if you assume that the bull market has actually started at the bottom in 2009, or if it actually started later. I would argue it didn't really start until late 2011 early 2012.
 
Unknown Soldier said:
The Fed is planning to raise rates over the next year until we're back at 3-4% for the first time since before Obama was President. Even knowing this plan, the stock market has been going up anyways.

The average bull market is 8.9 years in length, meaning the current one is now longer than average. However, on average bull markets are 5 times longer than bear markets. Think about that a moment. The stock market is, on average, at all-time highs five times longer than it is not. This is irregardless of the Fed's current monetary policy.

So the reality is: If the stock market isn't at all-time highs, it's actually unusual. The stock market is usually at all-time highs. Bear markets happen about every 8.9 years on average, but each bear market is about 5 times shorter than the bull markets which precede and follow it.
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The Fed has been preaching hawkish behavior and finding an excuse to delay the hike more often than not. I doubt we will see anything near ~3% in the next few years. Even if that were the case, in a general sense, you shouldn't stop buying until the free money is gone, and atm (if you're a large multi-national corporation) the interest rate on borrowing is nothing more than a rounding error.
 
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