DOW 16% higher than the high pre the 2008 crash, is it real?

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DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Sun Dec 29, 2013 7:57 am

Who among us really believes that the economic output of the USA is 16% (as measured by the DOW Industrials average) more valuable today than it was at its previous all time high peak achieved shortly before the crash of 2008? How much higher will our overall stock market valuations go in 2014? Is this measure of our economic growth and recovery in any way shape or form real, or is it an artificially induced consequence of artificial low interest rates and currency from thin air (or worse)? Is this growth (real and justifiable, or induced, I.E fake) sustainable?
Last edited by lsayre on Sun Dec 29, 2013 10:26 am, edited 1 time in total.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Sun Dec 29, 2013 8:38 am

The much broader S&P 500 Index says the nations corporations are worth 17.6% more now than at their peak pre the 2008 crash. The NASDAQ Composite Index (highly loaded with tech companies) is 45% higher than its 2007 peak.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Sun Dec 29, 2013 9:42 am

Could this be at least part of it?

How many of you have ever heard of 'POMO' (the Federal Reserves 'Permanent Open Market Operations'), which is an ongoing program where the Federal Reserve periodically (this being almost weekly) infuses currency directly into the US stock markets. The markets go up with the infusions, and they fall if there is no infusion.

So, thanks to the US Treasury, we know that between January 2009 and April 2013, on days in which the Fed POMO was more than $5 billion, the stock market rose a total of 570 points, on days in which the POMO was less than $5 billion, the cumulative stock market gain was "only" 141 points, and when there was no POMO, the S&P gained... -51 points.


http://www.zerohedge.com/news/2013-08-1 ... -fight-fed

With the Fed openly and admittedly infusing capital directly into the stock markets on a very routine basis, and thereby driving them up, how can they still be called places for "honest price discovery" (the purported primary reason for why the stock markets exist)? This manipulation can account for essentially all of the gains seen for the S&P 500 Index.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: jpete On: Sun Dec 29, 2013 10:08 am

You know you're right. And I know you're right. But the general mouth breathing public has no idea about anything. And that's not right.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: titleist1 On: Sun Dec 29, 2013 11:30 am

Obviously it is not real. I used to be licensed to sell securities but the manipulation I saw by the Goldman Sachs, CitiGroup, etc. of the financial world made me realize it was a rigged game and I got out before too long. The penny stocks always get the publicity and bad reputation for manipulation, but the regular markets operate the exact same way.

The stock market is no more a reflection of the condition of the economy than the roulette table in Vegas or AC.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: SMITTY On: Sun Dec 29, 2013 11:33 am

And the shitty part about all this is ......... the longer this goes on, the harder we fall ... smack right on our faces. :|
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: traderfjp On: Sun Dec 29, 2013 3:35 pm

What goes u fast comes down just as fast. It will be ugly when we get a correction. The government shouldn't be manipulating the markets to the extend that they area.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Sun Dec 29, 2013 3:38 pm

What goes up fast comes down just as fast. It will be ugly when we get a correction.


Agreed!

The government shouldn't be manipulating the markets to the extent that they are.


To what extent should they manipulate the free markets?
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: traderfjp On: Sun Dec 29, 2013 6:50 pm

I think the economy needed some help to find traction but the government has created a stock market bubble. Not good when it bursts.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: Flyer5 On: Sun Dec 29, 2013 8:23 pm

Hey I am not complaining I tripled some money on FB stock. :)
Last edited by Flyer5 on Sun Dec 29, 2013 10:11 pm, edited 1 time in total.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: traderfjp On: Sun Dec 29, 2013 8:39 pm

You only triple your money when you cash out. Paper gains and actually taking profit are two different things.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: Flyer5 On: Sun Dec 29, 2013 10:11 pm

traderfjp wrote:You only triple your money when you cash out. Paper gains and actually taking profit are two different things.



true.. I may do it at the beginning of the year.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: SWPaDon On: Tue Dec 31, 2013 7:05 pm

Flyer5 wrote:
traderfjp wrote:You only triple your money when you cash out. Paper gains and actually taking profit are two different things.



true.. I may do it at the beginning of the year.

Might be a good idea, because if it crashes(like some are saying it will), you could lose your principle as well as any gains.
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Tue Jan 07, 2014 4:46 pm

Did I mention that the Federal Reserve's POMO purchases of stocks take place on Tuesdays? Dig this!!!

http://buzz.money.cnn.com/2013/06/04/do ... ay-streak/
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Re: DOW 16% higher than the high pre the 2008 crash, is it real?

PostBy: lsayre On: Tue Jan 07, 2014 8:32 pm

lsayre wrote:Did I mention that the Federal Reserve's POMO purchases of stocks take place on Tuesdays? Dig this!!!

http://buzz.money.cnn.com/2013/06/04/do ... ay-streak/


They also do some purchasing on Fridays per the article link I posted. Tuesday and Friday are where the action is. All of the cumulative stock market gains happen on those two days. It's all Federal Reserve induced all the way. Is that how the stock market is supposed to work?
lsayre
 
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