Skip to comments.Stocks ends 2013 with bang; Dow up most since ‘95
Posted on 01/01/2014 4:26:21 AM PST by John W
NEW YORK (MarketWatch) The Dow Jones Industrial Average and the S&P 500 rang out 2013 with record closes Tuesday, ensuring blue chips posted the biggest annual gain in 18 years.
In the end, the Federal Reserves decision earlier this month to begin scaling back the size of its monthly bond purchases was the gift that kept giving as Wall Street capped a historically strong rally with big gains in December, said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.
The S&P 500 index ended the year with a 29.6% annual gain, its biggest yearly jump since 1997. The Dow industrials ended 2013 with an annual rise of 26.5%, the largest since 1995. The Nasdaq Composite rose more than 38% over the course of 2013, marking its biggest gain since 2009.
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It’s a great recovery from 2008, but you have to believe that it’s gone way beyond the accepted levels, and a major correction has to occur somewhere in 2014. A dramatic five to eight percent drop?
Free money from the Fed underpins this performance. Gone are the days when the broad indices truly reflect the performance of businesses.
That's what I think. I really thought it was going to be in this last quarter. My new guess is either 1) right after retail posts Christmas results or 2) in April when everyone's higher taxes are due.
On a side note, I was in BJ's warehouse club yesterday. The largest size of paper towels are going for 26 dollars. The largest size Charmin going for $30. Unsustainable. We're in big trouble. Once the market crashes, it's going to be a long, hard depression.
The Market will correct IMO 15% or more when it becomes obvious that Obamacare is sucking disposable income out of the economy. I’d say come the 3rd quarter of 2014 the Corp. Financial reports will show the earnings decline well into effect. The Multinational Corps will be hard pressed to make up the losses in China, India .....
In the “legendary” Jim Cramer’s review of 2013 with Matt Lauer this morning on Today he did not mention the Fed’s input to this and said businesses were making tons and tons of money.
My co-workers at work, mostly younger than 28 years old, keep telling me that there is no inflation.
I choose not to argue with them. None of them have a house or family. Therefore, none of them have to worry to much about maintain a household budget, because they typically have much more money than they need to pay for their small apartment. They would not really know about the increase costs of food, because they eat out so often.
Inflation is high, and I see it everyday. I have much less discretionary income, despite making more, and my household expendiatures have remained the same.
>>Free money from the Fed underpins this performance<<
Right? Wall Street reacted positively upon the announcement of Fed tapering...why?
Because the Feds are still planning to pump billions into the markets. The dollar dope for Wall Street continues.
Health care is a good example. We always hear that health care costs are rising substantially faster than inflation as a whole, but what exactly does that mean for younger people when the average person in the U.S. visits a doctor no more than 2-3 times in total between the ages of 20 and 35?
Also, you'll often find that inflation is effectively masked by financing terms for major purchases. If the price of a new home doubled over the course of 15 years but interest rates are considerably lower, the impact on a home buyer when measured in terms of a monthly mortgage payment doesn't accurately reflect the price change.
Our household moved backward in 2013, thanx Uncle Sugar, thanx a bunch.
I am 34, since I was 18, I never went to the doctor for any other reason than for a physical. I know I am lucky, but I am almost certain many my age almost never even for a physical. So I am generally confused by my premiums.
I would agree inflation affects people on a personal level. My property taxes, which were already high, have increased 50% in the 5 years I owned a house.
It maybe on a personal level, but it is real.
“We’re in big trouble. Once the market crashes, it’s going to be a long, hard depression.”
In terms of timing, a market crash prior to September of 2016 would be about right for Ted Cruz. To get him in office I’ll take a personal financial hit. Everyone’s long term financial well-being depends on it.
I asked my financial planner to look into this
FEDs not only manipulating the market but:
1. FOREVER!! Trillion Dollar deficits!
2. FORCING LENDERS to Secure house loans at 3%?
3. Raising Taxes on EVERYONE!- but still exponentially
raising the Debt owed-
I think the correction is going to be MASSIVE-just like:
All of the above had a sugar daddy-the U.S. and the
European union- WE will be on our own
Agree major correction has to occur somewhere I bet it’s at least 10%.
Don’t be confused by your premiums. You aren’t paying premiums for your own medical care ... you’re paying for everyone else who DOES visit a doctor regularly and/or has chronic health problems that need constant medical attention.