are we all stupid?

[HavokCycle]

so... we all know our current REAL economic woes. massive debt, negative GDP growth, yet the stock market closes above 14000.

this is so so so wrong.
Stocks rally; Dow closes over 14,000

soaring stocks YET we're in a huge financial crisis? it betrays ALL logic whatsoever. can anyone seriously say 'we're in such good shape and everything is well and forever shall be'

either my economics knowledge is SEVERELY lacking, or something is very wrong.

 

[phylodog]

When it comes to economics, I am. Couldn't begin to understand what it all means. To be honest, I can't comprehend how a bunch of numbers within computer systems (money) can be as important as they apparently are.

 

[The Bubba Effect]

Yes

 

[Kirk Freeman]

Umm, no, stocks float.

Lots of money coming in via SIMPLEs, 401ks, SEPs, etc. and earnings are still high helps too.

 

[JStarr]

Does it even matter anymore? We're so far gone it will take 50 years to recover. Remember, the Gov't only lets you know half of what they want you to know.

 

[Ted]

It isn't the first time.

From 1982:

 

[Kirk Freeman]

When it comes to economics, I am. Couldn't begin to understand what it all means.

p-dog, think of it this way, the economy is a big bag of water. Push down on one end of the bag and the water (money) is displaced to another part of the bag (stocks).

Stocks have the advantage of being liquid (I can sell them quickly if I need to) and the future (for now) is bright (corporate earnings seem to be solid).

 

[Yup!]

I put all my money in Sock and Blondes.

 

[ar15]

People are trying to get all they can... I think they are putting too much of a bet and risk by investing at this point;... It's just about time to take what we have and hide

 

[redgreenrider]

A lot of companies continue to run short staffed and are still being very frugal. This sucks for the wallets and moral of the employees, but the companies can boast profits to their shareholders again. Workers are always the last to get payed!

 

[Bradsknives]

If you are a investor, where are you going to put your money? With interest rates so low, you can't get any kind of return. Investors are putting their money in the stock market for this simple reason. A stock that has a decent paying dividend with the possibility of increasing in value is more attractive than CD's, bonds,.....etc.

 

[AZ D]

Does it even matter anymore? We're so far gone it will take 50 years to recover. Remember, the Gov't only lets you know half of what they want you to know.

Only 50? I'm not so optimistic!

 

[Rocket]

It isn't the first time.

From 1982:

Interesting, Sept of 82. Wasn't There a MAJOR dip October 19,1982?

 

[Kirk Freeman]

If you are a investor, where are you going to put your money?

Ummm, knives?

 

[NathanJefferson]

As pointed out further up, there are still a lot of dollars flowing into the stock market via 401ks, IRAs, etc. You are currently buying overpriced shares via your 401k.

Stocks are priced on the margin, whatever the last share sold for is what all shares are 'worth'. That is how they calculate it, but that is not how it works in reality. Lookup any of the 'erroneous' 'flash crashes' over the past couple of years and see what happens when a stock suddenly becomes illiquid.

I don't believe the market is a safe or fruitful place to be, so much so that I recently took mine and my wife's 401k's out of mutual funds and put them into the cash equivalent holdings.

 

[HenryWallace]

If you look a little closer, you'll realize the rich grew richer, and the poor aren't even mentioned in this article.

Same story that they'll try and state, to regain a little of the positivity that's needed to keep the masses thinking that "hey, they're doing good for themselves. That must mean eventually it'll 'trickle down' to me."

It's like saying, 'look at this Exec Order. It doesn't take a way our guns! We were paranoid for nothing.' Same lingo! Same story! Different A holes.

 

[Prometheus]

so... we all know our current REAL economic woes. massive debt, negative GDP growth, yet the stock market closes above 14000.

this is so so so wrong.
Stocks rally; Dow closes over 14,000

soaring stocks YET we're in a huge financial crisis? it betrays ALL logic whatsoever. can anyone seriously say 'we're in such good shape and everything is well and forever shall be'

either my economics knowledge is SEVERELY lacking, or something is very wrong.

I didn't read the story but you have every accountant in the world and all the investment firms pushing for people to get last minute 2012 tax deductions in by contributing to things like their Roth IRA's.

So that is one reason.

The other? People are stupid.

The markets are driven by two things right now. Fear and Greed. That's it.

Anyone telling you to invest in virtually anything that isn't tangible right now is guilty of being an insider trader or stupid.

 

[NathanJefferson]

If you are a investor, where are you going to put your money? With interest rates so low, you can't get any kind of return. Investors are putting their money in the stock market for this simple reason. A stock that has a decent paying dividend with the possibility of increasing in value is more attractive than CD's, bonds,.....etc.

If you are an investor you shouldn't have to ask .

But for those who are J6P and wanting to save I suggest; paying off debt, gold/silver, savings, guns/ammo. Anything tangible, nothing paper.

If you are at the point that you don't need or want tangibles, or have debt to pay off then you are pretty well off and congrats! You are beyond my knowledge!

 

[NathanJefferson]

If you are an investor you shouldn't have to ask .

But for those who are J6P and wanting to save I suggest; paying off debt, gold/silver, savings, guns/ammo. Anything tangible, nothing paper.

If you are at the point that you don't need or want tangibles, or have debt to pay off then you are pretty well off and congrats! You are beyond my knowledge!

And I just saw who I was quoting. In that case I suggest investing in precious metals; 154cm, 1095, 3v, etc etc etc.

 

[HavokCycle]

however, the majority of stocks are NOT profited by actual -investors-
most stock fluctuations come from day-traders, and automated trades. less than 30% of investors are actual 'investors'

Algorithmic trading - Wikipedia, the free encyclopedia