Dow surges to 13-month high

Why is the stock market continuing to go up..

"The market does create its own psychology," Clark said. "You would never go to the grocery store and pay a higher price because someone else did, but that's what happens in stocks -- the momentum that's happening today after G-20."

Finance ministers of the G-20 met over the weekend and pledged to continue government aid. The dollar fell sharply against the euro and British pound, while commodities and commodity-linked stocks rose.

"Stocks and commodities are happy that G-20 will maintain stimulus," said Art Hogan, chief market strategist at Jefferies & Co.

More stimulus injected into the markets to artificially prop up prices. Investors have a herd mentality. Individuals know that nothing has changed and the economy is still broken but they can't resist following the rest of the herd and will continue to buy just because everyone else is. This is just another bubble being inflated. Sooner or later....-POP!-
money.cnn.com...



[edit on 11/9/2009 by Erasurehead]

reply to post by Erasurehead


You know I do not really think it is due to a herd mentality. I think a lot of big time investors and some small time one have learned to "gamble" on the markets quite successfully. They have way better odds then they could ever get at the casinos.

If you invest a certain way then you don't care about the long term value of a stock because you are never intendng to hold it past the short term. All these investors care about is the chance the stock has to rise and/or fall in the short term.

reply to post by Erasurehead


Institutional investment purchases must be the best game in town. You get to spend other people's big money, including the taxpayer's, and don't have to worry about the actual consequences of your poor decision making. In fact, they give big fat bonuses for that.

Man, I missed my calling.....

[edit on 9-11-2009 by loam]

Originally posted by HotSauce
reply to post by Erasurehead

 

You know I do not really think it is due to a herd mentality. I think a lot of big time investors and some small time one have learned to "gamble" on the markets quite successfully. They have way better odds then they could ever get at the casinos.

If you invest a certain way then you don't care about the long term value of a stock because you are never intendng to hold it past the short term. All these investors care about is the chance the stock has to rise and/or fall in the short term.

You are right. Short term there is a lot of money to be made. Professional invevstors will know when the party is over and will get out ahead of time. It will be the averge Joe that will be left holding onto a bunch of worthless stock when this bubble bursts. Much like when the internet bubble popped in the late 90's, I know people that still haven't recovered from that.

This seems reminiscent of something from the past. What was that? Oh that’s right. Isn’t this what happened right before the “crash”? I think it was “Black Monday” wasn’t it? I wasn’t there but it does sound familiar. Maybe that’s just the doom and gloom in me.

Yeah its at a 13 month high and wait to it gets to all time "record level's" and then it will come crashing down, worse than as ever been experienced. All orchestrated of course. Still, there's money to be made on the short!

reply to post by veritas 7


Better get in and then get out quick. This wont last that long. The big boys are looking for suckers! The G20 sent the message everything is a ok. What do you do when they say theres nothing to worry about? Worry alot!!!!

Whatever happened to Reinhart's October crash? Did Legatus NOT meet? Cmon R, speak to us. Your followers can only falsify facts for so long before you are revealed as a fraud.

Oh wait. That's already happened.

Never mind.

Feh to the Dow Jones. All it tells you is how well 30 companies are or aren't doing. To the masses it's a statistical symbol that indicates a benchmark that American society as a whole have become attuned to through cultural influences. It's also not a constant has companies listed come and go. More than half of them became part of the DJIA in the last 20 years, only seven predate 1980 and only five predate 1940. The Dow didn't even start registering over 1,000 until the early 80s. It first broke 10,000 around 10 years ago. Does that mean we're as well off now as 10 years ago?

Benchmarks:

DJIA: 1,000, 10,000
Baseball: .300 hitter, 30 home runs, 100 RBIs, 100 wins, 30/30.
Football: 1,000 yard rusher or receiver, 3,000 yard passer, 4 yards per carry, 100 catches.
Basketball: 30 points per game, 10 rebounds per game.
Music: Number 1, top 10, top 40, gold, platinum.
Automobiles: 20 mpg, 30 mpg, 0-60 time.
Technology: 100 mhz, 200 mhz, 300 mhz, 20 MB, 100 MB, 1 Ghz, 2 Ghz, 1 GB, 1 MP, 5 MP, 10 MP.

On and on. There's also the preoccupation with the first this or the first that.

Numbers never tell the whole story and most people don't consider the underlying data, why those numbers are what they are. They see a number and say "Oh that's good." or "Oh, that's bad." The notion that the economic health of our country is based on a bunch of people on Wall Street yelling "Buy" or "Sell" is silly. We've gone from an agricultural to an industrial to a consumerist society in the space of ~150 years. The might of our country was built on the first two: The third will be the one that brings us down, regardless of the DJIA.

reply to post by liveandletlive


which was itself a reply:

reply to post by veritas 7

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


The scheme is pretty obvious to my eyes...
this Market Recovery is an orchestrated program... designed for the Financial Industry primarily, (banks, & the super-hyper 'banks' like GoldmanSachs, funds, pensions, et al)

the FED (federal reserve) loans, awards, funds, grants, swaps..
an unknown/ kept secret, ammount of fiat money to the favored
institutions.

These banks/institutions take these Trillion$ and leverage their way into
commodities, equities, with the purpose of creating the 'recovery' in the markets... (which is really just an equity, commodity, finance industry assets Bubble)

The only obligation is these PrimaryBanks are told how much money must be spent on the monthly 'Auctions' of Treasury Bonds/Notes so that the appearance of a 'Strong Dollar' remains the public/world's preception.
As a reward, these dozen or so 'Market Movers' may invest the untold Billions - Trillions in a way to bolster their own wealth.

In the process of 'An Incoming Tide Raises All Boats'...
the increase in values of 401k, pension funds, private equity groups profits...many investment vehicles sponsered by -> or 'custodian for' Entities make big profits on the many funds/IRAs/401k's they 'manage'.

The Funds base their incomes on the return/performance of the Fund, so if a Fund owned & run by, say GS or MS or any of the many financial elites
produces a 40% recovery price by this December at say a 2% fee... that makes the IRA owner happy, the fund happy with the fees & the bonuses,
the underwriter of the Fund happy with the (Bubble Generated) Profits.


It will take time for this newest equity bubble to unwind back to the DOW 6000 ~ Gold will also retreat but will have a new Floor of $1,000 USD ~

It's all just another house-of-cards...just like the WTC towers which appeared to be made of substantial material,,, key-word; Appeared !