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DOW is up 610 points ? Why?? (Original Post) at140 Apr 2020 OP
Cheap stocks? wryter2000 Apr 2020 #1
May be a long time before the real economy comes close to the January 2020 economy empedocles Apr 2020 #3
+100 at140 Apr 2020 #7
Okay, I'm no expert, obviously wryter2000 Apr 2020 #11
Usually market is looking forward about 6 months at140 Apr 2020 #16
Stocks were 35% cheaper just a couple of months ago! at140 Apr 2020 #6
As I said, I'm no expert :) wryter2000 Apr 2020 #12
Optimism about the news of good results pnwest Apr 2020 #2
Greed Over People. What's that spell? Bernardo de La Paz Apr 2020 #4
Oxford vaccine early results (in primates, not people) lapfog_1 Apr 2020 #5
Owners will profit while workers die and they approve that message. n.t. lark Apr 2020 #8
Emotion fuels the Dow, as much as anything else dlk Apr 2020 #9
Most of them got money from the stimulus. So they have some slush funds to play with. Tech Apr 2020 #10
The one percent need to transition out to cash (and gold) in an orderly fashion. Frasier Balzov Apr 2020 #13
There is no where else to go. Shemp Howard Apr 2020 #14
Actually you are PROFOUNDLY correct. at140 Apr 2020 #17
From a different perspective than 'return on investment'. Popular Depression comedian empedocles Apr 2020 #18
What bank is paying just 0.10% on CD's? My credit union, which definitely doesn't progree Apr 2020 #24
Vaccine and Remdesivir possible good news. mn9driver Apr 2020 #15
giant corporations are doing quite well, eating up what remains of smaller companies Voltaire2 Apr 2020 #19
Good news about how the bailouts will go to the "right people." Warpy Apr 2020 #20
The misconception of a high valued stock market BillyBobBrilliant Apr 2020 #21
Some people are pumping it up for trump duforsure Apr 2020 #22
The Federal Reserve (a private corporation) in charge of our money supply xyoungblood Apr 2020 #23
Why the FED has so much power? at140 Apr 2020 #25
What stocks is the Fed buying? I haven't heard of this progree Apr 2020 #26

wryter2000

(45,965 posts)
1. Cheap stocks?
Wed Apr 29, 2020, 12:28 PM
Apr 2020

If I had bunches of money, I'd be buying stock in good companies. I might have to hold onto them, but they'd come roaring back. The market will probably have a good rally when Joe Biden is elected.

at140

(6,105 posts)
16. Usually market is looking forward about 6 months
Wed Apr 29, 2020, 01:29 PM
Apr 2020

not year or year and a half.

But covid-19 is so new and such an unknown, people are willing to gamble both ways.

at140

(6,105 posts)
6. Stocks were 35% cheaper just a couple of months ago!
Wed Apr 29, 2020, 12:34 PM
Apr 2020

I did scrounge up some cash to buy a couple of months ago.
But now stocks are already too high.
The virus is not going to disappear.
2nd quarter corporate profits are going to be record low.

lapfog_1

(29,009 posts)
5. Oxford vaccine early results (in primates, not people)
Wed Apr 29, 2020, 12:33 PM
Apr 2020

coupled with rendesivir large study showing promising results (30% drop in lenght of illness and 25% drop in mortality).

dlk

(11,249 posts)
9. Emotion fuels the Dow, as much as anything else
Wed Apr 29, 2020, 12:48 PM
Apr 2020

Emotions are all over the map due to the COVID-19 pandemic. The Dow will likely be on a rollercoaster for awhile.

Frasier Balzov

(2,564 posts)
13. The one percent need to transition out to cash (and gold) in an orderly fashion.
Wed Apr 29, 2020, 01:06 PM
Apr 2020

A brief respite from the collapse will allow that to occur.

Shemp Howard

(889 posts)
14. There is no where else to go.
Wed Apr 29, 2020, 01:10 PM
Apr 2020

Bank CDs are paying around 0.10%. A good money market fund might be paying around 0.50%. So if you want to invest for the future, you’ve got to put your money into stocks. There is simply no where else to go.

But if bank CDs were paying around 6%, things would be very different in the stock market.

That’s my amateur view, anyway.

at140

(6,105 posts)
17. Actually you are PROFOUNDLY correct.
Wed Apr 29, 2020, 01:32 PM
Apr 2020

The artificially low interest rates created by FED by printing Trillions of "electronic" money,
is the real reason stock markets and other hard assets such as housing are in a bubble.

empedocles

(15,751 posts)
18. From a different perspective than 'return on investment'. Popular Depression comedian
Wed Apr 29, 2020, 01:57 PM
Apr 2020

said he was not interested on a 'return on investment' . . . Will was interested in the 'return of HIS investment'.

[This may be a time to minimize losses, rather than risk, what could be a very risky bet on 'gains'].

progree

(10,864 posts)
24. What bank is paying just 0.10% on CD's? My credit union, which definitely doesn't
Wed Apr 29, 2020, 04:49 PM
Apr 2020

have the best rates, because it has brick and mortar branches, has rates of (APY)
91 day: 0.60%
1y: 1.10%
2y: 1.35%
4y: 1.65%
5y: 1.90%.

Also check out bankrate.com
2y: 1.75%
4y: 1.75%
5y: 1.80%

(I'm shocked that bankrate.com doesn't have much better rates than my credit union, it usually does).

Here's another showing 1y, 3y, and 5y for 10 banks in a table for easier comparison:

https://www.nerdwallet.com/best/banking/cd-rates

However, I entirely agree with your point that there's nowhere to go. These are miserable rates (the yield on the S&P 500 is better for example, and stock dividends rise over time rather than being fixed, and of course the endless historic record of stock capital gains). But I post this just because I don't want people to overlook FDIC- or NCUA-insured CD's for the part of their portfolio they feel should be in fixed income.

There are some who post about high P/E's and Shiller's CAPE ratio and Warren Buffett's market valuation / GDP ratio, both showing stocks considerably overvalued in aggregate compared to almost all of the past, but in my mind, leave out one crucial factor -- the one you mention -- rates on competing fixed income investments like bonds and CD's are about the lowest they've ever been. And just plain suck.

mn9driver

(4,392 posts)
15. Vaccine and Remdesivir possible good news.
Wed Apr 29, 2020, 01:11 PM
Apr 2020

We will see the Market move up and down quite a bit as these things play out. Over the longer term, stocks will *probably* remain lower than their December-January highs due to ongoing economic bad news as a result of the long term disruption this has already caused.

Voltaire2

(12,132 posts)
19. giant corporations are doing quite well, eating up what remains of smaller companies
Wed Apr 29, 2020, 02:00 PM
Apr 2020

and there is a general consensus that the peasants should go back to work and just get used to dying more often.

Warpy

(110,486 posts)
20. Good news about how the bailouts will go to the "right people."
Wed Apr 29, 2020, 02:27 PM
Apr 2020

which leaves the 99% jobless, uninsured, and ill. The market loves that kind of news.

Reality is likely to set in soon as orders drop and the cash flow goes with them.

BillyBobBrilliant

(805 posts)
21. The misconception of a high valued stock market
Wed Apr 29, 2020, 02:37 PM
Apr 2020

being indicative of a good economy is bullshit being perpetrated by the capitalists.
The reality is, a high valued stock market is an indication of how much advantage the corporations are taking of the workers.
i.e. how much upward movement that the money supply makes from the average person to the wealthy.

duforsure

(11,880 posts)
22. Some people are pumping it up for trump
Wed Apr 29, 2020, 02:38 PM
Apr 2020

It's all fake, and it will crash on them anyway. They failed getting enough directly to the people in time, and this will take years to restore the economy from their failures.

 

xyoungblood

(36 posts)
23. The Federal Reserve (a private corporation) in charge of our money supply
Wed Apr 29, 2020, 03:25 PM
Apr 2020

is printing money and giving it to its banks to purchase securities (stock). It's their way of stopping the economy from siding all the way into a Depression and bankrupting them. They will probably have 6 TRILLION in the stock market by the end of the year. And remember they are a private corporation who controls the banks and our paper money supply.

They are also fighting to keep Trump in this election. He will use the inflated stock market as a prop for his false economy.

Now, no matter who gets elected president. The Federal Reserve will hold the global economy hostage because they own so much stock they can order government leaders to do their corporate bidding under threat of issuing a Sell Order on all of their stock, crushing our economy which will topple economies all over the world.

The head of Black Rock (a massive fund) said investing is dead. From now on just put your money wherever the Fed decides to invest. It's pointless to invest when the entire market is now manipulated and controlled by one corporation.

at140

(6,105 posts)
25. Why the FED has so much power?
Wed Apr 29, 2020, 07:15 PM
Apr 2020

WTF our elected politicians not waking up and reform the crazy system?
If they wait longer, it is going to be too late.

progree

(10,864 posts)
26. What stocks is the Fed buying? I haven't heard of this
Wed Apr 29, 2020, 07:25 PM
Apr 2020

I know they are buying a lot of bonds... including corporate bonds ... and yes, that boosts stocks by pushing interest rates down even more and providing liquidity for dubious quality bonds... but I haven't heard of the Fed buying up stocks. Yet.

Forbes, April 21
https://www.fool.com/investing/2020/04/21/why-is-the-stock-market-up-when-the-economy-is-tan.aspx

On April 9, the Federal Reserve pledged to buy up to $2.3 trillion in loans to enhance liquidity in the credit market, including junk bonds, which helped lift shares of struggling companies such as Ford, as well as retailers and restaurants.
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