|
http://money.cnn.com/2009/10/19/markets/thebuzz/index.htm »
Stocks have soared thanks to 'strong' earnings reports. But some worry that the Dow's move above 10,000 has been fueled by hot air.
NEW YORK (CNNMoney.com) -- Powered by a gush of strong earnings reports, the Dow has finally ballooned above 10,000 again. But could this most recent leg of the market rally turn out to be a cruel hoax?
Sure, there's much to cheer in the latest batch of results from major companies. Banking leaders JPMorgan Chase (JPM, Fortune 500) and Goldman Sachs (GS, Fortune 500) reported much larger than expected profits in the third quarter.
Tech kingpins Intel (INTC, Fortune 500) and IBM (IBM, Fortune 500) also surpassed Wall Street's estimates, and -- more importantly -- lifted their forecasts.
Still, there are some significant causes for concern. That means investors may need to be as skeptical of the rally as investigators in Colorado appear to be about this Heene family nonsense.
Bank of America (BAC, Fortune 500) posted a larger loss than anticipated. General Electric (GE, Fortune 500) reported a 20% decline in quarterly sales, and said that orders were down 18%, perhaps an indication of more weak sales ahead.
So what's going to happen this week, a period when more than a quarter of the companies in the S&P 500 will announce their latest results? Apple, AT&T, Coca-Cola and Microsoft are all on tap to report in the next few days.
Their forecasts for the coming months will go a long way toward determining whether stocks can keep drifting upward or if all the hoopla about a recovery for Corporate America was really for naught.
John Norris, managing director of wealth management with Oakworth Capital Bank in Birmingham, Ala., said he is not yet convinced that a robust rebound is in the cards.
Norris said it's one thing for companies to be able to beat earnings estimates because of lower expenses and boosts to international profits because of the weak dollar. But until more companies are confident that demand in the United States is improving, he thinks it's a good idea to be wary.
"I have not seen the type of earnings results to think that there is a rampant recovery around the corner," Norris said. "Corporate America needs to get healthy and it's good that companies are cutting costs. But we're not seeing a lot of profitability coming from North American revenue growth."
Eric Ross, director of research for investment bank Canaccord Adams, agreed. He said that the market's huge move since March has largely been fueled by better-than-expected profits that aren't terribly impressive considering how bad things were a year ago.
"Yes, the economy seems to be rebounding and earnings seems to be decent. But on the flip side, you also have much easier comparisons," he said.
Ross is worried that the rally may soon stall once investors realize that although the economy is improving, the recovery may be more slow and gradual than what many currently expect.
0:00 /5:25Blankfein: Uneven recovery
As a result, Ross said his firm is recommending more companies in classically defensive sectors such as healthcare and natural gas.
"We still have problems in housing and toxic assets for banks to deal with. But some people are now projecting that unemployment will peak barely above 10% and go back to 9.2 by the end of 2010," he said. "That may be too optimistic. It's going to be a tougher slog."
Norris said he also remains worried about the many headaches that banks still face. Even though JPMorgan Chase and Goldman Sachs continued to demonstrate that they are holding up well, the same can't be said for scores of many regional banks across the country.
For example, shares of BB&T, a big regional bank based in Winston-Salem, N.C., fell more than 4% Monday after BB&T reported that its provision for loan losses nearly doubled from a year ago.
And BB&T, which took over the assets of failed lender Colonial BancGroup in August, is actually considered to be one of the healthier regional banks in the country. Norris said that many smaller regional banks could continue to be hit hard by rising loan losses.
And since many of the hopes of an economic recovery are pinned to expectations that banks will once again start lending more freely to consumers and small businesses, more problems for regional banks will be tough to overcome.
Of course, none of this means that the economy are markets are necessarily heading for another big meltdown. In fact, a recent quarterly survey about trust in the financial system by professors at the Kellogg School of Management at Northwestern University and University of Chicago Booth School of Business showed that investors seem less worried now than a few months ago.
According to the survey of 1,000 households, only 23% of respondents now expect home prices to decline over the next year, compared to 37% in March. In addition, while more than 56% of the respondents in December feared a big drop in the stock market, just 40% think another major sell-off is likely now.
Still, the survey clearly demonstrates that investors aren't completely sold on the notion of a recovery just yet.
Paul Nolte, director of investments for Hinsdale Associates, a money-management firm based in Hinsdale, Ill, sums up the disconnect between Wall Street's elation about earnings and the average American's continued concerns about the economy as a matter of perception.
For now, Wall Street is choosing to look at the fact that while profits and sales may be down from a year ago, they haven't been as bad as some feared.
But sooner or later, investors might have to recognize the obvious. Earnings reports that are simply "less bad" won't be good enough to keep the rally going -- or convince consumers that the economy has really taken a turn for the better.
"If I expect you to fail math and you get a D, I might be excited for a while. But a D still stinks," Nolte said.
Talkback: Is the Dow's move above 10,000 a healthy sign of an economic recovery or another reason to worry that stocks have gone up too far too fast?
First Published: October 19, 2009: 12:19 PM ET
Mohammed N. Razavi 2:11 am
this is how we will bring in socialism, via capitalism, kiss your freedoms good bye, slaves
Mark Stebbins Jr. 1:58 am
THE STOCK MARKET IS THE BIGGEST SHELL GAME THE WORLD HAS EVER KNOWN .AND BTW CAREER POLITICIANS ARE THE BIGGEST WHORES FOR WALL STREET AND THEIR LOBBYIST FRIENDS!!
Justin Heard 12:49 am
The DOW is not a hoax. Three million workers have been let go, while 2 trillion dollars in loans backed by every American worker (forcibly and without a vote, without a single anti-trust violation hearing, without an FCC lawsuit & dismantling for allowing mass fraud..ie "Madoff, without re-thinking sending 90% of American jobs over-seas+shipping in untold numbers of H1N1 ..oops H1-B workers in to force down labor cost).
The Dow is real.
But as I have told everyone I know..." iceburg dead ahead!!!" America has entered a "pyramid scheam" (bail-out) that will make the housing crash look like a burp! What does America make that Americans buy in such volumes that 3 million people can get back to work? Nothing.
A Country that has its operations based in another country fails. Simple & Factual.
Barry Wellington 12:44 am
Has anyone ever asked why we the United States Of America borrowed money from foreign country's???? Wouldn't you think we as a country have been in real economic trouble for a long time??
Facebook User12:35 am
Obviously, measuring economic health based on market performance is an outdated 20th century paradigm.
Andy Vortex 12:34 am
"we are treading in difficult water...we are saying that something is wrong... with capitalism.... There must be a better distribution of wealth and maybe America must move toward a democratic socialism"
--- Martin Luther King Jr., to his staff, in 1966
We created a holiday after him. But do we really understand what he was about? Do Americans understand that capitalism alone, especially in this current corrupt form, will never produce justice and stability? Doesn't it seem less "fringe" these days to combine capitalism with justice, or social responsibility, to produce a new and better system?
It's not only OK to voice your opinion on the absurdity of this long-term hoax...it's absolutely necessary we all speak up. Together we can change things.
Ty Menna1 2:31 am
p.s.: Thanks Paul, you have been doing a fair and balanced job reporting, which is hard to find lately among so many cheerleading media outlets.
Ty Menna1 2:23 am
Zions Bancorp posts fourth straight quarterly loss
By: AFX | 19 Oct 2009 | 06:42 PM ET
Text Size
BANGALORE, Oct 19 (Reuters) - Zions Bancorp, a western U.S. banking chain, posted its fourth straight quarterly loss as the lender had to set aside more money to meet losses from bad loans.
Here we go...each quarter has been less bad than the last. We have a nice negative p/e and annualized net losses around -$13.00 per share, who would not be a bull on financials?!
Buy Buy Buy!!! Rally Rally Rally!
Alan Hill 12:03 am
I think we need to go into some of the economic fundamentals, firstly, most of improvements in companies bottom lines have been through stimulus or cost cutting, these factors will probably be short lived, the stimulus will eventually abate, the cost cuts will just exacerbate the problem of the economic spiral by reducing employment and investment. The US economy is so reliant on consumption, that any impact on the consumer is going to be problematic. Secondly if the profits are gained much through overseas activity, I would argue that the impact on the US economy will be limited. For example if a product is manufactured in China the s/w written in India and the product mostly sold in the US would have a overall deleterious effect on the economy. Furthermore a lot of the service sector gains in the long term will be reliant on a healthy manufacturing sector, most services do not intrinsically create wealth, some actually act as overhead on wealth creation, health care is one example.
Mohammed N. Razavi Oct 19
the rally is real, like Erma Bombeck said, "Grass is always greener over the septic tank", and no other place is more full of it than wall street.
David Casler Oct 19
The first wave of forclosures is over. The second is hitting now. As reported, this was the worst quater EVER for housing. People are still losing their jobs and the market will FEEL that in 3-4 months. People can only take advantage of so many "great buys" or investments. Where did the money go...to BANKS.........not to people! There has been no revolution in the car industry. Banks are STILL failing! We a STILL importing from china. The dollar is getting slammed.
ONE year ago my realestate agent said "BUY NOW!!" cause its going up! Really? Hindsight is awesome when you use FORSIGHT instead of emotion.
Idiots who are investing in stocks with NO profits, only loses will be the SAME people who are SELLING when they lose their job or their house.
Im not saying this is NOT a good time to buy in. Im saying ITS NOT OVER YET. So if you are INVESTING, YOU BETTER have the ability to dollar cost average. If you are the REGULAR Joe, KEEP your liquid CASH in a high yeild (ING) savings.
Geoff Green Oct 19
Hoax or not our model portfolio is up 44% while the dow is down 14%, find out how....
http://www.stock-trading-picks.com
Gene Rogers Oct 19
Of course this is a hoax. More banks failing every day. Billions spent on a fake war. Day traders profiting of pumping stock prices, then selling short. One Ponzi scam after the other.
Jorge Medrano Oct 19
The most recent comment at this moment speaks of revolution. I have been hearing that word a lot recently, the same as riots and civil disobedience. Anyone can contribute? The times seem ripe for that kind of thing, I think.
Jamie Waller Oct 19
Our entire existence is becoming a hoax. Honestly, has anyone pondered revolution? Every response on this page has an underlying tone of it.
Brian D Lowery Oct 19
This up surge in market activity is very pre-mature. I expect that it will continue thru the end of the year. However 4th quarter results will be devistating as consumers continue to move to a cash spending due to credit collapse. This process will bring consumption back down to an earthly reality. It has finally dawned on America that not everyone can live like a king. Well, at least not forever. At some point Americans have to pay that tab. The time has come for America to pay. We will pay much higher taxes and we will live much smaller lives in the near future. Unfortunately younger generations will get the raw end of the stick. The current economic turn around will not last. It is based on phony bail-outs outs and false hopes. AMERICA NEEDS THIS CORRECTION. WE NEED AN ECONOMIC BEATING CAUSE
Kyle Rupprecht Oct 19
OMG is this guy still posting negative articles. Give it up man, your bringing everyone down.
Andy Vortex Oct 19
A quote from http://www.WakeUpDallas.org
"Is the world's financial collapse just a bump in the road?
No, says Scottish author Benjamin Creme, it is the start of a paradigm shift of cosmic origins, and therefore it is inevitable..."
A new era is beginning, causing a major shift in thoughts & expressions worldwide.
We either keep listening to the "pundits" / "experts" who got it so wrong up until now...or...there is an enlightened teacher named Maitreya who tried to warn humanity of this crash. It was documented in Share International magazine:
In 1988 Maitreya forecast that “a world stockmarket crash will begin in Japan”. He said: “A stock market crash is inevitable.... This is a bubble that is about to burst.” Within months the Nikkei average began to fall and fall, until it officially collapsed.
Maitreya will offer real solutions to create a more sustainable economic system, where all can benefit and be happy, not just a greedy few who control nearly everything.
David Kam Oct 19
There are lots of money managers who were shellshocked by the 40% decline in global stock markets from summer of 2008 to 3/09. They hesitated to invest their cash while the market rebounded. They will now pile in all their cash or their investors will leave them for their lack luster performance
Louis Para Invest Oct 19
The NYSE is a joke, they show this even though the recession in getting deeper and deeper, no one job has been created with Trillions of Gov money. which is our tax money. soon depression will be here.... Louisville Paranormal Investigations and Shadows of Kentucky said this...
Troy Stanton Oct 19
Hey Facebook User, great point, I come here to learn and you taught me something.
John J Palazzini Oct 19
Pump and Dump....that's what rules the market now, and will for quite some time!!!!
Carolyn L. Johansen Oct 19
IN the days before the 1929 Stock Market Crash, the markets swung up and down wildly. We have not seen the big crash yet--but we will--probably in the first quarter of 2010. That is when the reality of this economic mess will hit home. This Christmas season is going to be among the worst on record. There are too many people living on unemployment and those checks do not even cover most rents. I got out of the Stock Market in October--mainly because I am unemployed and I needed the money to pay bills. More and more people are losing their homes to foreclosure and eviction--how are they going to buy Christmas gifts? By April of 2010, I predict the Stock Market will be around 7000--maybe lower. Maybe the Democrats will finally get off their behinds and focus on the economy instead of health care.
Allen T Herzig Oct 19
Hey if you don't have any employees or your paying your people 15 to 20 percent less.....of course you'll show a profit. I'm just waiting for the holidays when everyone spends 50% less to see how they spin this GREAT economy turn-around. Add to that all the tax money that won't be there for the Feds or the States and the can of worms just over flows. they're going to bs everyone cause the holidays are coming up and yes....yes....yes, they see disaster. Once again they're playing with air. What a joke!
Beyond Trading Oct 19
There are good and bad companies. You have to put your money in companies with strong earnings potential down the road; unique competitive advantages. The are some worth the investment; They've proven it. You should not invest on hype or businesses which have not proven anything yet.
Facebook User Oct 19
I don't think we are comparing apples to apples here, remember that many companies that tanked have been replaced on the DOW. Citi is out, AIG, and Bear Stearns are obviously out. If we had last year's companies still in it, the DOW would be a lot lower than it is now. Where would the DOW have been last year at this time with the current companies included? Add that grain of salt to your coffee.
John Muscarello Oct 19
Middle income Americans are not doing well. Their jobs are being outsourced and they can't afford to buy a home because prices are still inflated. These pressures on the middle class are intense and there is no end in sight, as long as the greedy are permitted to control home and fuel prices. I see nothing but dark clouds ahead for the majority of Americans.
Steven Swadinsky Oct 19
Wow, reading this article has officially shown me how skeptic-driven the media has gotten. As a veteran in this "time," so to speak, I have seen first hand how "skeptic-driven" the media can be, creating their own form of propaganda to bend the minds of the ignorant back home, versus what is ACTUALLY happening in the middle east.
Now, since only so many people actually participate as a stock broker up in Wall Street, few have been educated that the numbers that close with each day of the stock exchange are based on actual TRANSACTIONS, not numbers some idiot is stuttering into the blocks of an excel spreadsheet, so it makes sense that an equally misinformed journalist would be informed by his hot-air-spewing bosses that such a thing would be a "hoax." I hardly believe this jump above 10k means the economy is recovering, or the stocks have regained strength "too fast." It's a sign of economic growth, but the real "change" is yet to come.
Rolf H. Parta Oct 19
America's fundamentals for job growth are poor until the dollar sinks and stays down. The biggest driver of jobs is the relative value of the attained educational level of the workforce. America's bottom third workforce is being pressured by second world workforces. Our middle third workforce and even the next sixth going up are also under pressure from workforces in previously second world countries that are becoming first world.
America's middle class no longer has an education advantage over people in Korea, Taiwan, Singapore, Japan, or Western Europe. Thus, their standard of living has to become competitive with those of the foreigners who are chasing their jobs -- or there won't be any such jobs in America.
We're flooding the markets with dollars to depress the exchange rate. This will, in effect, lower the cost of middle America's labor on the world market while increasing the cost of everything imported.
Oil and gold are already going up.
Another ~15% down to USD.
Jim Foley Oct 19
It is my opinion, companies are way overvalued. Personally, I do not possess resources for this stock speculation. Companies can't cost cut forever. The US will not grow for years to come. China is growing, but can we expect the same growth the following year, and the year after? I don't think so. There is too much wrong for this to continue. Washinton in bed with Wall St. People and companies not being held accountable for the risks they took and lost. Bankrupting the taxpayer for a dozen businesses. By the way, how accurately are the books checked on companies that report?
Facebook User Oct 19
Middle Class is painfully paying for big investors to reenter Wall Street. While we're trying to get our bills paid and stay afloat, they are reinvesting their wealth and taking advantage of an undervalued market. This rally will hit a wall and we might even see a W instead of a V if people don't start going back to work. I'm glad I'm somewhat self-employed right now. I do agree that it is now a global market and a country obsessed with "Bubble Boys" and Twitter instead of intellectual pursuits is a bad investment.
Curt Bogen Oct 19
Of course the banks are making money...Bush, then Obama flooded the banks with TARF bailouts...the banks are not spending the money. Consumers still pay the taxes, Obama changed TARF so that the Banks can only pay a penny a share dividend, as opposed to 15 to 25 cents a share annually before Obamanomics...meaning Banks took the money, invested it (badly), lost it; Bankers keep their salaries, incentives, perks and trips to Vegas; Investors in bank stock lost their investment to five million defaulting homeowners, who took bank money, pi**ed it away,won't pay it back...and to the Banks, who tanked their investor's share values. Thanks to Obama and Franks, there will be no returns on their (eeeevil, capitalistic ) invested money for years to come. Welcome to the Homogeneous United Geopolitical Entities of Depreciated Equity Based Tender, (HUGE DEBT) formerly known as the United States Of America. Thanks. We're hearing about PROFITS? Do the Math--it's unpaid dividends--DO THE MATH!!!!
Mike C Green Oct 19
http://www.TrendAccounts.com
If the market falls then thats great!
Profit from declining or advancing trends.
Mike Smoth Oct 19
Quote: "...we're not seeing a lot of profitability coming from North American revenue growth." Get a clue, we are living in a global market, Apple just proved that... we a low dollar and commododty prices rising... I would not be surprise if Catepillar start seeing a turn around as well as all the rig produces, etc.
Raymal W Dennis Oct 19
Tilford in what country. 16+% unemployment. Millions running out of benefits every month. Home foreclosures growing. Job growth tiny at best. Big banks stealing money out of our pockets. They are handing out the largets bouns pool ever. Healhcare benefits dissapearing. Oil and gas prices on the rise see(Big banks stealing money out of our pockets).
Mike Smoth Oct 19
The only hoax is this article design to get hits instead of informaing Earnings have come out fine and Apple ust kicked butt (must a hoax, huh?) and TXN is also doing fine....
Charles Schwarz Oct 19
Until meaningful onshore middle class jobs are available the market really won't recover. The upturn we are seeing now is not based on production, but the lower value of the dollar.
Instead of bailing out the billionaire bankers, the bailout money should be used to lubricate and develop on-shore middle class jobs where the discretionary spending will fuel real investments.
Instead of rebuilding Iraq, we should rebuild the interstate road systems, the water and sewer pipelines and the power grids. If we invest in them the ROI will be tremendous, if we don't - Katrina will look like a thunderstorm at a picnic.
We also need to put money into R&D for the same reasons. Remember 401(k)s and other investments are purchased and funded by the middle class as retirement instruments.
Tilford Bartman Oct 19
Considering a year ago we were looking at the real possibility of a worldwide economic panic and colapse, the current economic circumstance looks pretty good. However, are we now poised for a period of sustainable moderate growth?
Mike Schmidt Oct 19
...also, Uncle Sam is spending money like a drunk sailor. All the crazy bailout money has to go somewhere. You might not have gotten any but many of the financials types are doing rather well.
William Connor Oct 19
"...The worst is over..."
http://kepfeltoltes.hu/view/091014/nowadays_www.kepfeltoltes.hu_.png
Please google for "Kondratyev".
William Connor Oct 19
"...The worst is over..."
http://kepfeltoltes.hu/view/091014/nowadays_www.kepfeltoltes.hu_.png
Please google for "Kondratyev".
Mike Schmidt Oct 19
Not more or less a hoax than the stock market rally of 1999 or the housing market rally of 2003 - 2006. It'll go on for a while until it doesn't. That could be tomorrow or 4 years from now. "The market can stay irrational a lot longer than you can stay solvent."
Stephen Michael Oct 19
Its not a sign of economic recovery rather the banks are using taxpayer money (TARP, etc) to play the stock market with. If it weren't for that, stocks would still be 6500-7000. This is the reason for the huge disconnect between Wall street and Main street.
Ray Wong Oct 19
Approach with caution, as usual. There are still a lot of investors on the sideline wondering if a) it's already too late to invest, b) are the rallies bubbles and they should continue to sit out? The fact is, the "worst" seems to be past us, but the economy continues to be weak with high unemployment rate. But jobs often lag behind the economy -- companies won't hire until they have something to show for it first... So it's a tricky thing.
The Dow's 10000 is a psychological boost and if that pumps up consumer confidence, especially with good Q3 results, there's no reason to put cold water over it just to "prove something" for the naysayers. Still, it doesn't mean we should throw away the fundamentals. Watch the fundamentals, the earnings, the balance sheets, folks. Still, there are tons of bargains out there. Personally I think the market will cool down a bit, but I do think the worst is over, but don't expect to see 14000 any time soon.
Kamal Jonnalagadda Oct 19
My two cents: I think that the Dow's move to 10,000 is not a hoax and is here to stay. But this may not necessarily be a consequence of good health, and may only be a consequence of the enormous "bail out" dollars from the government. We should also remember the huge budget deficit this year. The increase in the value of Dow may therefore not necessarily indicate a higher financial worth, but only reflect an adjustment for inflation.
My blog: http://flatforum.wordpress.com/category/kamals-kolum/
Facebook User Oct 19
I feel like the lack of consumer spending is more based off of negative thinking than the rise in joblessness. It really seems like a lack of consumer spending will result in more job loss as companies cut costs to compensate for fewer purchases. I'm not economics expert, but from what I've seen, people need to stop being afraid and grab the opportunity to make some really good purchases in technology. Looking at prices on line, there has never been a better time to update and upgrade your electronics and computer systems.
Thom Wilson Oct 19
The article title answers the question asked." Follow the money"..... Cash for clunkers at 20% of MSRP..... First time Home buyer incentives at 8% of entry level komes.... and people ASK IF THERE IS MANIPULATION ????? " It's the economy stupid".... the truth lies in economic facts.... not in the fever of markets. Once again "on paper profit" or "actual cash in hand." I would love to see a consumer sentiment poll on TRUST. Do you trust numbers furnished by those with vested interests ... whether they be political or financial. The harsh reality is that Americans as a whole, and the American standard of living is on a collision course with harsh reality.
Matthew Gentner Oct 19
Paul thanks for your article and the Talkback page! And YES indeed "stocks have gone up too far too fast." Stocks are greatly overvalued and just about to completely crater. Some of the price-to-earnings (P/E) ratios during U.S. stock market crashes in the past century were 34 (1929) 23 (1987) 44 (2001) but today the P/E is a record-high 145 and literally off the charts. If you have not seen the NY Fed report (which is updated daily) then have a look at - http://www.newyorkfed.org/research/directors_charts/ipage20.pdf
Paul Smith Oct 19
Currently 60% of companies are beating 3rd qtr profit estimates,albeit in most instances with reduced turnover. Forward-looking statements from 75% of companies thus far reported indicate furher improvement in next two quarters.
These are promising signs & indicative of the stock market's continuing uptrend.
One must remember that virtually the total rebound from March to Sept. had next to nothing to do with companies' balance sheets, but all to do with the psychic of the typical investor or fund manager.
With this in mind, plus the added impetus of corporate America recovering from the longest recession since the late 1940's,there are certain principles in place which will make stocks look cheap with prospects of capital growth, when compared to other forms of investment.
Sure there are lingering negatives(Unemployment,housing,regional banking), but it appears the "smarties" have already factored these into future economic estimates.
Tentatively optimistic............
Arthur Shields Oct 19
It's amazing how over 70% of the GDP is based on consumer spending, yet the market keeps going up as over a quarter million jobs are being lost each month. Based on our runaway debt, inevitable hyper-inflation and eventual total loss in confidence in the US dollar (and treasuries) I predict the entire US economy will crash within the next 10 years, if that. It would be great if I could claim Glenn Beck as my only news source, but this is what heard some economists predict for the last 20 years. Only in the last year or so did I really start to believe these predictions. Scary...
Arthur Shields Oct 19
It's amazing how over 70% of the GDP is based on consumer spending, yet the market keeps going up as over a quarter million jobs are being lost each month. Based on our runaway debt, inevitable hyper-inflation and eventual total loss in confidence in the US dollar (and treasuries) I predict the entire US economy will crash within the next 10 years, if that. It would be great if I could claim Glenn Beck as my only news source, but this is what heard some economists predict for the last 20 years. Only in the last year or so did I really start to believe these predictions. Scary...
Stephen Dofelmier Oct 19
Can't have a robust stock market without consumers. A jobless recovery may make companies more efficient; however who is out there to feed the engines of our ecnonomy?
Bill Smith Oct 19
While last year's crash was definitely an overreaction, this boom may also be somewhat inflated. The "real value" of these equities likely lies somewhere in between these two overreactions, but I don't think equities will ever be priced right so all we can do is play the game and hope we win more times than not.
Ivars Fabriciuss Oct 19
US stocks will go up till August 2010 with a small fluctuation during Feb 2010. This is in no way based on any economic data, it is just a normal reaction of market to the end of Lehman shock.
Till April 2011 they will wobble down , then have slight pickup till January 2012 but generally not much bar some global events of similar magnitude. In April 2012 next possible lows and good buying moment will come.
Beyond that (April 2012 ) , this recession and its effects on stock market most likely will not expand.
Devin Phillips Oct 19
I'm still not sold on the idea of a recovery. I think it is imperative to be optimistic, but we must realize that a turn around from such a dramatic fall last year will not be quick and easy. I think too many people expect a quick fix to things these days. This cannot be the answer in this situation. Our country's mind set needs to be more long term than it has in the past. Band aids won't help heal where surgery is required.
Facebook User Oct 19
THis is the biggest HOAX ever!!! How can the markets rally while reports from all companies are horrible? We gota start to be realistic here and look at REAL results - not the result given by the FEDS! Thos results are manipulated. Unemployment rates in the U.S. are close to 20%, here in the Canada the job amrket is pretty dead! Companies are laying off 30-50% of there Work force YES!!!!!! 30-50% here in Canada.
This is not a recession, but the biggest depression EVER!!!
Well, here were are in October 2009, and gold is definitely making a major move upwards. To me, the reason here is simple: investors have begun to realize that every central bank on the planet is hell bent on devaluing their currencies.
Another Economical /Collapse Crash will be between September and December 2009. The market has been manipulated higher on weaker and weaker volume courtesy of the Fed’s loose monetary.
http://www.kitco.com/ind/Summers/oct082009.html
Dean Stelmach Oct 19
There's too much money seeking too few investments. That drives up the Dow. Mutual Funds must keep investing. People keep contributing to them. It's a trap.
In addition I do not believe we've plumbed the depths of the housing collapse, there are not enough jobs for those who need one and our currency is in crisis because of gov't debt and runaway hidden inflation. Apply 1978's inflation indicators and see for yourself.
Kyle Cattanach Oct 19
Things SEEM to be turning around, Im buisier than ever where I work, and almost all my friends who got laid off have found jobs, often better ones that they like more. I think you always have to see things with your own two eyes as opposed to beileiving everything the media tells you.
Michael Quinn Oct 19
I'm holding steady with more conservative stock choices for at least another year. I may lose out on some small profits but it is better than risking much larger losses like those I suffered last year. Not worth it.
Hans Doller Oct 19
http://fineartamerica.com/featured/from-sea-to-shining-sea-hans-doller.html
Peter Formaini Oct 19
Where was all this 'concern' over the rising Dow when Bush was in office?
Somehow I do not recall seeing any 'some worry about 14,000 DOW......' when the blithering idiot was in charge.
John Williams Oct 19
Bubbles make us feel better until they pop. Point to a time in history when the Fed jammed this much paper into the market. Never. Housing prices got alot better for a while there too...
Julius Fazekas Oct 19
Things are improving in this region. Folks are getting jobs. Real Estate activity is picking up. Attitudes are better. Petroleum products are lower than last year.
It may not be perfect or uniform, but some improvement is better than none.
Some stocks were actually reasonably priced in the last 9 months. I mean solid companies with good products and sound balance sheets. Funny though, some of the biggest pops are still in purely speculative operations. Wonder if any body learned any thing? I would bet against it...
Andy Vortex Oct 19
A hoax? As if day trading gamblers were doing real, long term investments in the past?
To quote someone else whose opinions I respect, "Of all the transactions on the world stock exchanges 97.5 per cent are in fact currency transactions, they have nothing to do with the real economy of the world."
We are living in an age of widespread greed. Call it what it really is: GREED
Capitalism involves investment. I understand the concept. But quick, day trading, gambling has nothing to do with contributing to society. This gambling, hedging, speculating, manipulating, cheating in fierce competition....it all makes for a very corrupt, unstable system which is collapsing inevitably.
Richard King Oct 19
More La Monica naysaying - he's helping to build the wall of worry that those of us knowing better are climbing on our way to real growth. Yes, the earnings really are real, and the economy really is improving. Jobs are always a lagging indicator and one of the last things to recover during a recession.
Dave Kiddoo Oct 19
The market upside always preceeds the upside in the real economy. Why should this cycle be any different? There is nothing new here.
Facebook User Oct 19
I wouldn't call it a hoax, but you have to think, the market fell to far last year. The market overreacted then and now it's overreacting on the upside. With that being said, I do believe the market is being propped up at the moment. The dollar is weaker than ever, but the market continues to rise. Strange times.
Vicki Ritschard Oct 19
DONT FIGHT THE FED ! This is total recovery and USA is awake now. If U dont think the trillions of $$ are not going to make USA better......U deserve F in economics. Invest every dime in stock market cause there is no better chance to be rich than right now. Gezzz what planet did U come from?
Andrea Williams Oct 19
yes
|
|
It is NOT ok to contact this poster with commercial interests.
65 hits
|
Please Refresh your Screen if you do not see the Driving Directions input form!
Get your Mulliganslist Driving Directions
|
Home 
