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WHO IS RESPONSIBLE FOR THE YO-YO STOCK MARKET (VANITY)
Self ^ | 4/27/2004 | Jesse Housman

Posted on 04/27/2004 1:52:06 PM PDT by JesseHousman

Just why is the stock market acting like a yo-yo out of control?

I grow more certain each day that we are being led down the garden path by a bunch of know-nothing 27-year-olds with MBAs that are capable of seeing only quarterly results, not what the subject company will earn this year, next year or the year after.

When I hear some overeducated boob with no business experience espouse "Company A" did not meet his expectations for the quarter, then downgrade said company, I cannot help but wonder if these guys have ever spent any time in the real world. I wonder, while in college if they ever read Benjamin Graham's book "The Intelligent Investor," which became required reading in most "B" schools. The answer is obviously "no."

To regain market stability and investor confidence, one of the many things that must occur is long-range thinking, not just what is happening in 90 short days.

How dare these overeducated, under-experienced boobs downgrade a company that did not meet their estimate.

An estimate is just that --an estimate--which is usually wrong. Unfortunately, the big investment firms are populated by these dullards and they are the ones causing IRAs and other investment vehicles to continue proceeding down a bumpy road that needs repaving!

The situation flows into our public schools and government as well.. Who are these people teaching our children? LIBERALS with corrupt agendas geared to convert innocent children that will become the next generation of misfits and druggies.

Remember what Hillary said.........It takes a village.. . of What?....gays and misfits.

The Democrat move is on to register the generation that has been brainwashed for the last decade or two to VOTE.


TOPICS: Your Opinion/Questions
KEYWORDS: stockmarket
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1 posted on 04/27/2004 1:52:08 PM PDT by JesseHousman
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To: JesseHousman
You act like this something new or never seen before. This is standard operating procedure and why, over the long haul, the markets are near guaranteed to reward shareholders who behave counter to that which you've observed & witnessed.
2 posted on 04/27/2004 1:55:26 PM PDT by Steven W.
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To: JesseHousman
"...we are being led down the garden path by a bunch of know-nothing 27-year-olds with MBAs that are capable of seeing only quarterly results..."

Yes! A perfect description of what I've been thinking for the last 6 to 9 months! Bravo.

3 posted on 04/27/2004 1:56:12 PM PDT by theDentist (JOHN KERRY never saw a TAX he would not HIKE !)
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To: Steven W.
Duncan.
4 posted on 04/27/2004 1:56:43 PM PDT by Rebelbase ("Freepers tend to eat their own"--Sean Hannity)
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To: JesseHousman
Will the stock market go up or down?

Yes
5 posted on 04/27/2004 2:00:38 PM PDT by umgud (speaking strictly as an infidel,,,,,,,,,,,,,,,,)
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To: JesseHousman
The people buying and selling stock
6 posted on 04/27/2004 2:01:13 PM PDT by SF Republican (Life ain't fair and I'm glad)
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To: JesseHousman
If you believe what you wrote, go out and make millions! If people are inappropriately over or under valuing companies...and you can tell...you can make a bundle with ease. Let us know how it goes.

Being one of those 'B school boobs' (although not working in asset management) I know what they were taught. Read Aswath Damadoran's equity finance book. He breaks it down as well as anyone. The only thing that matters to the value of the company is how many dollars go in, how many dollars go out to investors, and the respective timing of both flows. However, figuring out when and how much money will come out is incredibly complex...and involves making many assumptions and educated guesses and estimations. I would rather safely guess that those upgrades and downgrades reflect changing long term estimates in the models more than fluctuations in quarterly profits.
7 posted on 04/27/2004 2:02:23 PM PDT by blanknoone (Vote GWB in 04 or your great grand daughter WILL wear a Burqa.)
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To: JesseHousman
Stockholders are responsible...
8 posted on 04/27/2004 2:05:47 PM PDT by Lunatic Fringe (John F-ing Kerry??? NO... F-ING... WAY!!!)
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To: JesseHousman
I grow more certain each day that we are being led down the garden path by a bunch of know-nothing 27-year-olds with MBAs that are capable of seeing only quarterly results, not what the subject company will earn this year, next year or the year after.

Did you see "Trading Places" with Dan Akroid and Eddie Murphy? If not, I would suggest it. The trading houses make money on trades, whether you make money, or lose money doesn't matter. By virtue of trading, they make money.

Consider AMD, they make almost 300% more money than they were expected to (12 cents vs. 3 cents) and their stock drops by ~10%. This isn't a bunch of little guys moving the stocks around; this is the big dogs moving millions of shares around.

9 posted on 04/27/2004 2:07:49 PM PDT by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: JesseHousman
The S & P futures traders in the S&P trading pit are responsible for the intraday yo-yo action of the stock market.
10 posted on 04/27/2004 2:09:18 PM PDT by freedom1st
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To: JesseHousman
Some people are so wealthy but politically motivated and will handle their stock in such a way to drive down the market and hurt Bush.
11 posted on 04/27/2004 2:14:07 PM PDT by INSENSITIVE GUY
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To: dakine
Ping...
12 posted on 04/27/2004 2:20:33 PM PDT by codyjacksmom
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To: JesseHousman
Stockholders.
13 posted on 04/27/2004 2:25:41 PM PDT by PRND21
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To: JesseHousman
Strong economic data, but the market is being held back by fears of the current military situation.

When Fallujah is taken care, stock market will plow ahead in a mini-bull.

14 posted on 04/27/2004 2:25:49 PM PDT by what's up
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To: INSENSITIVE GUY
"Some people are so wealthy but politically motivated and will handle their stock in such a way to drive down the market and hurt Bush."

Name one.
15 posted on 04/27/2004 2:29:06 PM PDT by truth_seeker
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To: JesseHousman
A word of wisdom for grasshopper...

Brokerage firms make money on volume, just like bookies. So it is to their advantage to whipsaw the market about so people get stopped out up and down. Although never admitted to, that is the real purpose for essentially market neutral program trading.
16 posted on 04/27/2004 2:31:06 PM PDT by AmericaUnited (It's time someone says the emperor has no clothes.)
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To: JesseHousman
THE STONECUTTERS!

Who controls the British crown?
Who keeps the metric system down?
We do! We do!
Who leaves Atlantis off the maps?
Who keeps the martians under wraps?
We do! We do!
Who holds back the electric car?
Who makes Steve Guttenberg a star?
We do! We do!
Who robs the cave fish of their sight?
Who rigs every Oscars night?
We do! We do!

17 posted on 04/27/2004 2:36:41 PM PDT by IowaHawk
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To: IowaHawk
Tug o' war between expected higher interest rates (which make markets drop on good news; i.e., inflation coming?) and good earnings. Also, big-time re-evaluation going on, as higher-PE stocks get penalized. Also, worry about a big dump of the so-called "carry trade," where major investment houses borrow at the fed funds rate and invest in junk bonds for the 3% spread -- a business which will get hit hard if the fed raises rates. Lots of stuff. Get an education, deal with the real world, take your lumps as you pay your dues, and you can make money in just about any market.
18 posted on 04/27/2004 2:42:26 PM PDT by MoralSense
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To: JesseHousman
Anyone who thinks they know the market is a fool. When hasn't the market been like a yo yo ?
19 posted on 04/27/2004 2:42:55 PM PDT by John Lenin
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To: JesseHousman
MKT VOLTLTY NDX (WCB)

Market data proves you are incorrect on the volatility issue.
20 posted on 04/27/2004 2:46:44 PM PDT by gipper81
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