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Stocks ends 2013 with bang; Dow up most since 95
marketwatch.com ^ | December 31, 2013 | William L. Watts

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 Reserve’s 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.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
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1 posted on 01/01/2014 4:26:21 AM PST by John W
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To: John W

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?


2 posted on 01/01/2014 4:28:14 AM PST by pepsionice
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To: pepsionice

Free money from the Fed underpins this performance. Gone are the days when the broad indices truly reflect the performance of businesses.


3 posted on 01/01/2014 4:32:12 AM PST by BlueStateRightist (Government is best which governs least.)
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To: pepsionice
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?

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.

4 posted on 01/01/2014 4:41:51 AM PST by old and tired
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To: BlueStateRightist

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 .....


5 posted on 01/01/2014 4:44:54 AM PST by DAC21
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To: BlueStateRightist

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.


6 posted on 01/01/2014 4:52:30 AM PST by John W (Viva Cristo Rey!)
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To: old and tired

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.


7 posted on 01/01/2014 4:53:44 AM PST by castlegreyskull
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To: BlueStateRightist

>>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.


8 posted on 01/01/2014 5:16:28 AM PST by servantboy777
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To: castlegreyskull
It's important to remember that inflation is only meaningful on a personal level, which means a lot of the statistics for the nation as a whole include inflationary trends for things that a lot of people don't necessarily buy.

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.

9 posted on 01/01/2014 5:20:53 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: castlegreyskull
I've experienced stagnant wages at the corp., increased cost of health benefits, property taxes up, Social Security taxes up 2% for my wife and I Jan 13, auto/homeowners insurance up, cost of gasoline up three times what it was when Obozo took office, food prices up, home energy prices up.

Our household moved backward in 2013, thanx Uncle Sugar, thanx a bunch.

10 posted on 01/01/2014 5:25:11 AM PST by servantboy777
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To: Alberta's Child

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.


11 posted on 01/01/2014 5:35:36 AM PST by castlegreyskull
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To: Alberta's Child

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.


12 posted on 01/01/2014 5:37:06 AM PST by castlegreyskull
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To: BlueStateRightist
Free money from the Fed underpins this performance. Gone are the days when the broad indices truly reflect the performance of businesses.

Bears repeating.

13 posted on 01/01/2014 5:49:11 AM PST by EricT. (ARBEIT MACHT FREI- now get back to work you taxpaying peasant!)
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To: old and tired

“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.


14 posted on 01/01/2014 6:00:02 AM PST by BlueStateRightist (Government is best which governs least.)
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To: EricT.

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:

Greece,Ireland,Spain,Portugal,Cyprus,Italy,France-

All of the above had a sugar daddy-the U.S. and the
European union- WE will be on our own


15 posted on 01/01/2014 6:55:11 AM PST by mj1234
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To: pepsionice

Agree major correction has to occur somewhere I bet it’s at least 10%.


16 posted on 01/01/2014 7:44:04 AM PST by Vaduz
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To: John W

Fiat money...


17 posted on 01/01/2014 7:45:44 AM PST by meyer (Who needs gas chambers when you have Obamacare?)
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To: John W
was the FED dumping $85BILLION into the economy every month in 1995??? i don't think so...
18 posted on 01/01/2014 7:51:21 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: castlegreyskull

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.


19 posted on 01/01/2014 8:14:35 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: castlegreyskull
Understood -- but it does vary widely from one person to another, which is why so many of the younger people cited in the previous post don't "see" it.
20 posted on 01/01/2014 8:15:56 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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