How can it be going up on such awful news? That alone makes it suspect. I think it is a big scam.
Two thoughts: You may not have been paying attention, but we just finished Q4 earnings season--US corporations are making healthy and sustained profits.
Second, remember the drivel from obama and other economic illiterates about corporations "sitting on trillions in cash?" Guess what. Nobody sits on cash at that level. Major corporations have been spending hundreds of millions and even billions to buy back their own stock, thus reducing the supply and shoring up the market price.
Yes the market seems to be ignoring bad news in the macro world, but this is a classic bullish indicator, not a cause for concern.
Because the Federal Reserve is depositing 6-8 Billion dollars of cash in big bank trading accounts most days. This is the ultimate government-issued funny money. Trading credits for the big boys. Should end by June. What do you think will happen then or October, at the latest? What do you think the big players will do with their shares when the end of the Fed-sponsored Wall Street party draws near?
From October 2010, FWIW....
Stock Market Rally October 2010 Due to Federal Reserve Influence
When the banks give you zero interest, and risk of failure/closure is real.
When Municipal bonds are 'guaranteed' by a bankrupt municipality.
When Gold has already gone up 500% (5X) in the last few years.
When the mad hatters in the Federal Government are cranking up the printing presses at the mint to fund their insanity.
When Real Estate still has some serious risks - because the bad loans still haven't been flushed out...
Its not all that easy to figure out where to park your money.
Buying a portion of some Companies (i.e., Stock) isn't all that unreasonable. Yes its risky (given the inherent poor health of the economy) - but I don't see it as being riskier than the other options.
Canned goods and Ammo I guess ... but how much of that are you going to 'invest' in?
It’s from the “Quantitative Easing” AKA Helicopter Ben dispensing trillions of dollars from his ass. Not to mention that the vast majority of the stock market volume is algorithmic trading, not from humans.
Because there are other sources of inforation besides chicken little
The market climbs a Wall of Worry.
>>How can it be going up on such awful news?<<
Steady cash infusions by the fed. QE2....maybe QE3 coming soon.
“How can it be going up on such awful news? That alone makes it suspect. I think it is a big scam.”
The stock market is currently controlled by the high frequency trading of 3 or 4 banks with JP Morgan being the king of that hill. People have made some money these last 6 months, but have you seen the percolating world, and now US inflation rate? If the FED weren’t doing QE2 - permanent open market operations (POMO) - of $600 Billion in 6 months - where would the market go (naturally), and since the FED can’t go on forever with QE - where will the markets eventually settle naturally.
Problem is the FED can go on for a quite a while longer and the longer they pour money into the economy the more you’ll see all currencied drop in value relative to commodities (which is why we’re seeing the hot price rises in food and other commodities around the world.) Of course the stock market has gone up in these conditions - it’s dollar based - and the dollar, and all currencies are dropping in value. So this may also continue due to bamster’s re-election hopes among the ‘powers that be.’
Paul Ryan’s questions recently of Ben Bernacke are telling - ‘aren’t you trying to monetize away the government debt?’
I think Bernacke and the other bankers are complete frauds and liars and we need to oppose the Fed and the Federal Reserve Act NOW.
Who’s with me?
I recommend these sites about the topics above:
http://economicedge.blogspot.com/
http://www.marketoracle.co.uk/