Stock market up 108%

[PLC1]

Stocks are up 108% since the 2008 election.

Even with the flawed roll out of health-care reform and uproar over spying, Barack Obama is enjoying one of the best stock markets for a re-elected president. Signs are building that it might not last.
This year’s 24 percent jump in the Standard & Poor’s 500 Index is the third-biggest annual rally after a president was returned to office since the 1930s, trailing Bill Clinton and Ronald Reagan, according to data compiled by Bloomberg. The index has climbed 108 percent since Obama became president, adding more than $10 trillion in equity market value.

Not bad for a "socialist," eh?

Now, let's get the job market up by 108%, and maybe wages up by the same.

 

[dogtowner]

May want to check cashcalls gdp thread. The nature of this accomplishment is discussed. Short answer us that the reason for the stock mkt rise (and gdp) is mutually exclusive to the ither 2 improving.

 

[PLC1]

May want to check cashcalls gdp thread. The nature of this accomplishment is discussed. Short answer us that the reason for the stock mkt rise (and gdp) is mutually exclusive to the ither 2 improving.

So, the choice really is the stock market or jobs?

That really does sound like class warfare!

 

[steveox]

The Rich get richer and the poor still gets poorer. Whatever happened to this promise?

We all know this promise was broken

 

[Texas_tea]

Stocks are up 108% since the 2008 election.



Not bad for a "socialist," eh?

Now, let's get the job market up by 108%, and maybe wages up by the same.

9.5 million Americans have left the workforce

93 million have or will lose their health insurance

47 million Americans are on food stamps

15% of US youth out of school or work

154,000 fewer women in the workforce in September alone

82 million household on medicaid

nations poor at 47 million, higher than official rate

40% of veterans need food assistance

I am not sure just what your point is PLC1 .....

 

[PLC1]

9.5 million Americans have left the workforce

93 million have or will lose their health insurance

47 million Americans are on food stamps

15% of US youth out of school or work

154,000 fewer women in the workforce in September alone

82 million household on medicaid

nations poor at 47 million, higher than official rate

40% of veterans need food assistance

I am not sure just what your point is PLC1 .....

But, the wealthy, the people who have a lot in the stock markets, are doing well. What can we conclude from that?

 

[PLC1]

The Rich get richer and the poor still gets poorer. Whatever happened to this promise?

We all know this promise was broken

I suppose they must have been transported somewhere:

 

[Texas_tea]

But, the wealthy, the people who have a lot in the stock markets, are doing well. What can we conclude from that?

That Obama's marxist policies to destroy the middle class are working ...

 

[Dr.Who]

So, the choice really is the stock market or jobs?

That really does sound like class warfare!

The choice is between a centralized government that can create either or the other versus a free market that can create both. Quantitative Easing benefits the rich far more than the middle class whose savings are being eroded greatly. If you have savings, 401K, 302B, stocks you plan to hold, cash in the bank, money markets, or really anything held in dollars consider yourself one of the ones who is being taken advantage of. So, just to yourself, how much of your money is being debased at this very moment? How much of your future paychecks? Its Weimar Germany but hopefully on a much smaller scale.

And yes it is a very real class warfare. Nnder this administration* those heavily invested in wall street, especially bankers, have been giver large sums of money from the rest of the nation. Many of them will lose it when the market falls apart. The more well connected will be given advance notice and can shift their portfolios to PMs.

* this kind of activity went on during the bush and clinton admins too so I am not trying to single out obama.

 

[dogtowner]

The choice is between a centralized government that can create either or the other versus a free market that can create both. Quantitative Easing benefits the rich far more than the middle class whose savings are being eroded greatly. If you have savings, 401K, 302B, stocks you plan to hold, cash in the bank, money markets, or really anything held in dollars consider yourself one of the ones who is being taken advantage of. So, just to yourself, how much of your money is being debased at this very moment? How much of your future paychecks? Its Weimar Germany but hopefully on a much smaller scale.

And yes it is a very real class warfare. Nnder this administration* those heavily invested in wall street, especially bankers, have been giver large sums of money from the rest of the nation. Many of them will lose it when the market falls apart. The more well connected will be given advance notice and can shift their portfolios to PMs.

* this kind of activity went on during the bush and clinton admins too so I am not trying to single out obama.

i beg to differ, QE does not benefit anyone but the well to do.

 

[Dr.Who]

i beg to differ, QE does not benefit anyone but the well to do.

QE will benefit anyone whose assets are placed in non-cash entities. The rich will benefit the most because they have more non cash entities. In a different economic cycle the rich would benefit more when they had more of whatever was of most value. in every economic cycle the rich will benefit most because they will always have more to use to get that benefit. I don mind that. What I do mind is when they benefit bacause the gov is picking winners and losers - the opposite of blind justice.

If you know that cash is being debased then by all means do what the rich do and transfer you money from cash like stocks, bonds, money markets and move it to profit generating land or silver. The timeing is the hard part. For the moment the stock market is in a huge bubble and those who play the bubble will make profits just until it pops. Those who get out just before it pops make the most. I have already started devesting myself from stocks - basically just diversifying. I am losing the benefit of being in the stock market because I am almost certainly getting out too early. Am I getting out too early by one month or by one year? Who knows? well those who talk to Ben Benerke or the pres of others in the know are the ones who know. The fed could make that bubble pop at will and I am just jaded enough to think that they will decide when.

I have been watching the silver markets for a few weeks now and definitely notice a negative correlation with the stock market. I also see that it is being manipulated - huge gold selloffs to effect the price, timed (and often false) announcements, QE itself, efforts to strengthen the dollar at silvers expense, etc. In the micro world of economics I dont know what it will do day to day but I have a pretty good idea that in the macro economic world the fed will lose control of QE someday and when the dollar gets hit silver will be a reverse bubble that pops too. Might they get control by perfectly walking that tightrope between tapering and more easing? We will all see.

In any case demand for silver is at an all time high while its price is dropping pretty regularly. That is apparently against the law of supply and demand. And when the laws of economics are broken you can be pretty sure that something else is going on. The fed is actively holding up the dollar while actively suppressing the price of PM's. Can they keep that up forever? I am betting they can't. In the mean time silver is on sale. One might need to hold on to it for a few years but at the very least it is a hedge against inflation and a good way to diversify. And shiney, did I mention that it is shiney?

 

[Gipper]

QE is benefiting me and I am far from well to do.

However as Doc says, getting out of the stock market before the bubble bursts is tricky, but I am taking the risk for now.

Everyone should be 10-20% invested in precious metals as a hedge. I heard an expert say the other day that gold will go to $7,000/ounce. He did not say when...of course.

 

[Dr.Who]

QE is benefiting me and I am far from well to do.

However as Doc says, getting out of the stock market before the bubble bursts is tricky, but I am taking the risk for now.

Everyone should be 10-20% invested in precious metals as a hedge. I heard an expert say the other day that gold will go to $7,000/ounce. He did not say when...of course.

I agree completely that everyone needs to be invested in different investments. I think the percentage should change so that different investments are weighted differently in different economic conditions. Right now people should be shifting from stocks to PMs. Since I owned zero PMs before I have not sold off any stocks but have purchased Silver. If the stock market falls I will still lose some of my oh so small stock holdings, and hopefully that loss will be offset by the increase in silver (not etf's).

You and just about everyone else is taking the risk in stocks right now. That willingness to take the risk is the ONLY thing holding up stocks. That's why its a bubble. When all investors collectively lose their confidence on stocks it will plummet. Will they lose their confidence in fiat currency at the same time? I doubt it but if they did that would be a catastrophe.

I dont want to lose my investment in stocks but at the same time I would like to see my PMs go up that much - this morning gold is around 1275 so that is only about a 300% increase.

 

[PLC1]

That Obama's marxist policies to destroy the middle class are working ...

It seems to me a strange sort of Marxism that favors the wealthy.

 

[PLC1]

I agree completely that everyone needs to be invested in different investments. I think the percentage should change so that different investments are weighted differently in different economic conditions. Right now people should be shifting from stocks to PMs. Since I owned zero PMs before I have not sold off any stocks but have purchased Silver. If the stock market falls I will still lose some of my oh so small stock holdings, and hopefully that loss will be offset by the increase in silver (not etf's).

You and just about everyone else is taking the risk in stocks right now. That willingness to take the risk is the ONLY thing holding up stocks. That's why its a bubble. When all investors collectively lose their confidence on stocks it will plummet. Will they lose their confidence in fiat currency at the same time? I doubt it but if they did that would be a catastrophe.

I dont want to lose my investment in stocks but at the same time I would like to see my PMs go up that much - this morning gold is around 1275 so that is only about a 300% increase.

Inflation is the logical result of adding currency to the economy, but the rate of inflation has been pretty flat for the past few years. How long must we wait before we begin to see the devaluation of the currency?

As for the price of gold, that is and always has been pretty volatile. Gold has been advertised extensively, raising the demand and therefore the price. The price is artificially high, and likely to drop as soon as the advertising diminishes.