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View Full Version : Stock market cognitive dissonance



Gerarddm
02-28-2013, 07:08 PM
I am flummoxed. Why is the Dow Jones reaching for new highs on the eve of sequestration?

Either the market doesn't think it is that big of a deal, or else some entity is manipulating it.

Of course, we still have the debt ceiling hoo-hah to go through in a couple of months or so, that should be fun.

Donn
02-28-2013, 07:30 PM
It's pretty simple.

Bernanke is going to keep on printing.

Businesses are making money.

Interest rates are low.

Sequestration is virtually meaningless when compared to the overall economy, despite Obama's wolf cries.

The DOW's good unless it drops to ~13.6K-13.7K. If it does that, it falls another 10-15%.

Garret
02-28-2013, 07:43 PM
What does the stock mkt have to do with anything - except a bunch of people making $? It only benefits the original company once - at the IPO. Biggest waste we have in this country - and that's saying some.

hokiefan
02-28-2013, 07:55 PM
What does the stock mkt have to do with anything - except a bunch of people making $? It only benefits the original company once - at the IPO. Biggest waste we have in this country - and that's saying some.

Companies don't sell all of their authorized shares at the IPO. So they can (and often do) sell more into the market later as they need to raise capital. That is why one of the statistics out there is "shares outstanding", it can go up or down.

Cheers,

Bobby

Donn
02-28-2013, 07:58 PM
What does the stock mkt have to do with anything - except a bunch of people making $? It only benefits the original company once - at the IPO. Biggest waste we have in this country - and that's saying some.

A huge number of common American workers have pension and other retirement funds linked to the stock market. They're the biggest part of your "bunch of people making $" from it.

Garret
02-28-2013, 09:34 PM
Along with a lot of leeches.

Sorry - have no use for Wall St.