Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Dow surges 459 points, Nasdaq clinches fresh record close, despite concerns of economic toll of unfettered U.S. virus cases
marketwatch.com ^ | July 6, 2020 | Joy Wiltermuth and Sunny Oh

Posted on 07/06/2020 2:44:19 PM PDT by John W

U.S. stocks finished sharply higher Monday, with the Nasdaq scoring a record close, as Wall Street followed surging Chinese equity benchmarks to their best levels in at least two years.

Monday’s upbeat market action contrasted with a further spike in U.S. coronavirus cases and a resurgence of business restrictions by state and local authorities struggling to contain the viral outbreak.

U.S. stocks ended up sharply Monday, led by shares of financial companies and record-setting technology shares as Wall Street followed Chinese equity markets higher.

But Monday’s gains also came with growing doubts about the ability of the U.S. to contain the viral outbreak and its economic fallout, after COVID-19 cases climbed across the U.S. over the Fourth of July weekend.

(Excerpt) Read more at apple.news ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: covid19stockmarket; dja; stockmarket
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 last
To: PeterPrinciple
We have lived quite a while with the mantra, “wait, and the price will go down.” That has changed, now it is buy it now while you still and before the price goes up.

The prices of cell phones, laptops, High definition TVs, tablets etc are vastly lower than they used to be.
I remember when I bought my desktop for over $3000. Today you can get a laptop (which should be pricier than a desktop) for as low as $300.

61 posted on 07/06/2020 6:51:38 PM PDT by SmokingJoe
[ Post Reply | Private Reply | To 54 | View Replies]

To: SmokingJoe

Stock market indices have nothing to do with inflation.


Do we have more money chasing the same or fewer stocks? That is inflation.


62 posted on 07/06/2020 6:52:43 PM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
[ Post Reply | Private Reply | To 58 | View Replies]

To: PeterPrinciple
That is our perception but the reality is that it moves based on rumors, especially what the govt is going to do.

Microsoft and Apple are not at a market cap of a massive $1.6 Trillion each because of rumors. They are priced very high because they delivered excellent Q1 results and are expected to deliver great Q2 earnings as well.

63 posted on 07/06/2020 6:57:29 PM PDT by SmokingJoe
[ Post Reply | Private Reply | To 60 | View Replies]

To: PeterPrinciple
You don't appear to have an clue as to how the CPI is calculated.
Why don't you go to the Bureau of Labor Statistics and read up on it before spewing out garbage?
It's right here at the BLS site. It's explained in great detail. :

https://www.bls.gov/cpi/

64 posted on 07/06/2020 7:03:46 PM PDT by SmokingJoe
[ Post Reply | Private Reply | To 62 | View Replies]

To: PeterPrinciple

Let me know when you are actually ready to post something that actually makes any sense will ya?


65 posted on 07/06/2020 7:10:54 PM PDT by SmokingJoe
[ Post Reply | Private Reply | To 59 | View Replies]

To: bkopto
The rich get richer

People with 401ks get richer.

66 posted on 07/06/2020 7:20:00 PM PDT by M. Thatcher
[ Post Reply | Private Reply | To 2 | View Replies]

To: bkopto
I would prefer an honest market.

Suggest you move to whatever country has a market that meets your approval.

67 posted on 07/06/2020 7:23:33 PM PDT by M. Thatcher
[ Post Reply | Private Reply | To 15 | View Replies]

To: Vermont Lt

“It will be fun to see where the Fed will be investing next.”

What is it you think they are buying other than bonds?


68 posted on 07/07/2020 9:29:15 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: bkopto

“and awash in debt which will never and can never be repaid.”

Why is paying off the debt necessary? The only time that the national debt was ever paid off was during Andrew Jackson’s presidency, about 190 years ago.


69 posted on 07/07/2020 9:34:52 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: gbscott

The answer to your question is that the world has a dollar shortage.

In recent years countries besides the United States have issued huge amounts of debt denominated in dollars.

That’s because international investors trust the U.S. dollar, and they don’t trust the currencies of a lot of other countries. The amount of that outstanding debt is around 60 trillion dollars.

These countries need dollars to service the interest on their debt. This has created a global shortage of dollars estimated to be about 13 Trillion as of March 2020.

So while the Fed has increased the money supply by a few trillion dollars it’s being absorbed by international demand. That’s why you aren’t seeing a ‘70s style inflation.


70 posted on 07/07/2020 9:48:58 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 26 | View Replies]

To: SmokingJoe; bkopto

https://tsi-blog.com/2015/07/beware-of-bogus-inflation-indices/

“Another alternative CPI is called the Chapwood Index. The components of this index were selected based on a survey of what Ed Butowsky’s friends and associates spend their money on (Ed Butowsky is the index’s creator).

“The prices of the 500 most commonly purchased items were then added together to generate the index. Not surprisingly, considering the methodology, the result is not a realistic measure of the change in the dollar’s PP or the cost of living.

“As evidence I point out that if the roughly 10%/year average increase in the general price level estimated by the Chapwood Index during 2011-2014 is correct, then the US economy’s real GDP must have been about 25% smaller at the end of 2014 than it was at the end of 2010*. In other words, if the Chapwood Index is an accurate reflection of PP loss then the US economy now produces about 25% less goods/services than it did four years ago. This is not remotely close to the truth.”


71 posted on 07/07/2020 10:25:34 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 40 | View Replies]

To: Pelham
Again the CPI is calculated by the Bureau of Labor Statistics. Period.
It's been refined and adjusted through the years taking account of the basket of goods/services that the average family spend their income on.
We can't have everybody coming up with their own little indexes. That is why The Bureau of Labor Statistics is the officially recognized one.
And the CPI index for May was 0.1%, down from 0.3% in April. Inflation is very very low.
You can read all about it here.
https://www.bls.gov/cpi/

As for the economy, it's going to have spectacular growth between now and November . And the record new job creation figures will continue right up to the elections in November.
Everything is looking great for a very nice Trump win come November.

72 posted on 07/08/2020 12:18:26 AM PDT by SmokingJoe
[ Post Reply | Private Reply | To 71 | View Replies]

To: Pelham

Do you think the the government buying bonds is a good thing? And when that stops working, do you think they will stop there?

But the market is up. So that’s good, right?


73 posted on 07/08/2020 5:06:19 AM PDT by Vermont Lt
[ Post Reply | Private Reply | To 68 | View Replies]

To: PeterPrinciple

So prices DOUBLED in 6 years at your hardware store?

Find someplace else to shop.


74 posted on 07/08/2020 9:28:35 AM PDT by Red in Blue PA (You can vote your way into socialism, but you have to shoot your way out.)
[ Post Reply | Private Reply | To 50 | View Replies]

To: Vermont Lt

“Do you think the the government buying bonds is a good thing? “

The government doesn’t buy bonds. It sells them. It does this every single week at the Treasury auction.


75 posted on 07/08/2020 12:14:28 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 73 | View Replies]

To: SmokingJoe

I don’t disagree. CPI is at least a standard benchmark to work off of and it’s built from the widest collection base of any inflation calculator.

Businesses and investors need a reference point and that’s all that the CPI offers. If you think it’s underestimating inflation then buy some hedges.

30 yr Treasuries are currently yielding 1.45%. Bond vigilantes aren’t in the habit of buying bonds with negative yields; meaning that inflation is lower than that.

Inflation plus Real Yield = Nominal yield of 1.45%

In 1981 inflation was still raging. Nominal yield on 30 yr Treasuries was 12%


76 posted on 07/08/2020 12:44:28 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 72 | View Replies]

To: Pelham

You realize the Fed is buying corporate bonds every week, right?


77 posted on 07/08/2020 1:56:07 PM PDT by Vermont Lt
[ Post Reply | Private Reply | To 75 | View Replies]

To: Pelham

I guess my error is saying government. In that context, you are correct. I meant “Fed”, not government. My mistake.


78 posted on 07/08/2020 1:57:37 PM PDT by Vermont Lt
[ Post Reply | Private Reply | To 75 | View Replies]

To: Vermont Lt

“You realize the Fed is buying corporate bonds every week, right?”

They are this year. Normally they only buy Treasuries.

They aren’t buying individual corporates, they are purchasing through established bond funds.

The purchase of corporates is being driven by the Covid shutdown. There is a danger of default on corporates because the companies may not have the income to cover their interest payments.

Holding defaulting paper won’t hurt the Fed. If that paper is held by commercial banks and financial firms there is a risk of serious deflation. This is the same battle that Bernanke and the 2008 Fed were confronted with when the mortgage bubble collapsed.


79 posted on 07/08/2020 2:20:03 PM PDT by Pelham ( Mary McCord, Sally Yates and Michael Atkinson all belong in prison.)
[ Post Reply | Private Reply | To 77 | View Replies]

To: Pelham

Last week they started buying individual bonds, not just the eft.

No matter how you slice it, it’s public money picking winners and losers.


80 posted on 07/08/2020 2:56:42 PM PDT by Vermont Lt
[ Post Reply | Private Reply | To 79 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson