Or not.

Dow ends above 11,000 for first time in 18 months

I seem to remember several crystal ball gurus who about a year ago were telling us the market upturn was a temporary glitch and that we could look a for a DJIA of 5,000 or less within a year. Want to revist those predictions?

While I appreciate your ability to see the glass half full Dave I would caution you on trumpeting a DJIA number of 11,000 as economic success.

If the Dow is nothing more than a number to you then yes, things look positive. The problem is that once you peel back a layer or two you begin to see that there are major problems afoot.

Companies increase earnings during a depression via layoffs, forced productivity increases, quatitative easing, and stimulus. With an unemployment rate of near 22% you have less consumers to sell to. As this persists it is only a matter of time before things fall into reality.

That means that the stock market is overpriced. Much in the same way the housing market was overpriced. Sovereign debt sales are putting pressure on bond yields. The economists I have been reading are predicting the 10yr Treasury note to be up to 5% withing 8-9 months. Those events will bring the housing market to a screaching halt.

It's hard to declare recovery and jump up and down about a 11,000 DOW when 92% of small business owners say they see no recovery.

Ahhh KK,........always here to reduce a complex issue into a petty partisan quabble.

We have been in depression for months. The Federal Reserve has floated the whole monetary system with our money. In any other time in history there would have been a run on the banking ind. Averting a disaster deceptively by dumping worthless paper of unbacked funds is only a mirage....... for you to run toward. Be very careful. Unstable world economic conditions will plummit the market sooner or later. It's a given. Look at Gas prices recently....Oil commodities brokers are making sure they get theirs first before the day of reckoning.

And I tend to be an optimist.

Dow 6000 before 11,050?

Wrong Moon Bat,...........it's a partisan issue because your first response was to paint it as such, as evidenced in your self-contradictory second post.



I would love to see the economy recover,......it would do wonders for many of us out here in the real world. The problem is that kicking the can down the road isn't going to solve a damn thing,...... cept maybe delaying the problem till the next election. Which is I'm sure all you give a flying fugazee about,.........Party before country? America Hater?

Someone who gets it.

Earmarks = Strawman

They don't change the amount of appropriations one cent since the amount of appropriations has already been decided on.

Should the congress pass on earmarking money into a bill the funds are passed to the executive branch to spend as they see fit.

I wouldn't expect either party to do anything about the problem.

The Dems will spend and borrow more money to get out of debt,.....brilliant.

The Repugs will talk about spending and cuts and spend like drunken sailors once in office.

We are totally fugged.

Wall Street is whispering "here sucker sucker" Welcome to the new KLEPTOCRACY.

My 401k is invested offshore and in bonds, and my cash is staying in the mason jar.

Might want to take some of that cash and invest it in something a little more tangible, like gold or silver.

Andrew Macguire, who recently went public when the CFTC opted to drop his testimony about overt manipulations by JPMorgan in the gold and silver markets, recently explained how the market has been papered over.

There is no way physical holders can deliver on even a fraction of paper contracts. Leverage is through the roof. SHTF in that market soon to come.

No because if the S does HTF then gold and silver will be the only thing worth anything since paper currencies will be rendered worthless.

It's been money for 5,000 years, and steadily increased in value over that time. Although in your infinite wisdom it too will be worthless if worse does really come to worse.

Up nearly 400% in ten years,......yep,.....that's one terrible investment.



Glad you're not my financial planner.

I wasn't trying to say anything about what 11,000 means. Just pointing out how far wrong the earlier prognosticators were when they predicted a Dow of 6,000 by the end of 2009.

Will it go up and down in the future? Of course, that's what it does. Do any of you know by how much and when? Of course not.

Hey Dimbulb.

If you had any sense of reading comprehension you would see where I stated that former trader Andrew Macguire has gone public about the market being papered over.

Only a fool would buy a paper contract with an expectation of delivery. What do you think happens to the price per ounce when all those paper holders demand delivery? I don't have time to teach an econ lesson but I think you're smart enough to figure that one out.

Got out of the market in June 2008. Got back in last September, but I also invested in copper, lead, brass, powder, primers, and chickens, so I'm hedging both sides. Call before you come over, and bring some gold if any of you gatherers need some eggs, While you are at it, gathering, bring a few bags of Layena or Flock Raiser.

Yeah, but do you have the expertise?

Hankster,
It's been a rough few weeks for me. Been trying to pencil out a few ways to get some extra scratch. I'm a lefty, and played ball with Jacoby Ellsbury. Kneecaps are right at the bottom of the zone... Nothin' against KK, but right now, if I could club something for $$, I'm all in...

Isn't there a "You're full of beans." line that goes in here somewhere?

So, when the market hit it's all time high with Bush in office, we can say it was because of him?

I guess the reorganization (getting their profit margins back on track, cutting expenses, being smart) of corporations and businesses during the past 18 months had nothing to do with it. Wow, next you'll say that if we have a good coho season..............it's because of Gregoire. Give credit where it's due, Obama had nothing to do with the market bouncing back...........it did because of free market choices/adjustments and the stock market ALWAYS comes back.

By the way, before all you Obama supporters start ripping on me....I've been a financial advisor for 30 years. When the Dow started to slip in '08 I told nearly all of my clients to hold or make slight adjustments. They did, they're fine. Those I told to make bigger adjustments needed their money within 2 years.

Snake

Snake: You and I are in agreement. The market moves based on many factors. If we give Bush credit for the high, we have to give him credit for the crash as well. Neither are reasonable assumptions. My point was, the market didn’t crash because we elected Obama- as many of the RWWJs here so direly predicted. Just wanted to remind those who were saying check back in a year when the market is 5,000 that they were, as usual, full of crap.