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Pensacola Discussion Forum » General Discussion » Why does the stock market keep going up?

Why does the stock market keep going up?

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knothead
boards of FL
ZVUGKTUBM
bizguy
ImpishScoundrel
Markle
Nekochan
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Guest


Guest

anyone care to answer?

Nekochan

Nekochan

From what I understand it's because the Fed is pumping money into the economy.

Markle

Markle

Chrissy wrote:anyone care to answer?
The money being pumped out by the Fed. every month doesn't go directly to the stock market but rather through a circuitous route.

Companies are not expanding, they have no clue what taxes they are facing or what comes with ObamaCare and MORE regulations. People are not buying as many big ticket items for the same reason. So eventually the money, which is going to make the top 5% even richer through the policies of President Barack Hussein Obama arrives there in the stock market. It's the only thing showing a return.

Many companies, instead of expanding, are buying back more of their own stock. Which raises their own stock prices.

This is the historic supply of money in circulation. Do you see anything resembling a bubble?

Why does the stock market keep going up? 1112013SupplyofMone

Guest


Guest

Markle wrote:
Chrissy wrote:anyone care to answer?
The money being pumped out by the Fed. every month doesn't go directly to the stock market but rather through a circuitous route.

Companies are not expanding, they have no clue what taxes they are facing or what comes with ObamaCare and MORE regulations.  People are not buying as many big ticket items for the same reason.  So eventually the money, which is going to make the top 5% even richer through the policies of President Barack Hussein Obama arrives there in the stock market.  It's the only thing showing a return.

Many companies, instead of expanding, are buying back more of their own stock.  Which raises their own stock prices.

This is the historic supply of money in circulation.  Do you see anything resembling a bubble?

Why does the stock market keep going up? 1112013SupplyofMone

I think that's about the clearest most honest answer Ive seen.

Thank you

Now Do people recall a conspiracy/rumor that Obama was going to take peoples retirement plans 401ks?

Well you should because when this bubble pops, and it will, people are going to loose massively out of their retirement plans even worse than they did during 9/11. And I knew people who lost 100's of thousands of dollars from their retirement that they had worked all their life for after 9/11.

This is the PERFECT example of why you should not mess with something such as this. because every time you see the GOV going in to HELP the situation turns out worse than it was to begin with. History has proven this.

Now they are in a bind and cant find a place to stop QE.. oh the mess. It will stop though, hmmm during the elections bet they will fight that lol, when? the month right before the next prez takes office lol, probably .

ImpishScoundrel

ImpishScoundrel

I monitor and record the DOW results everyday. I can accurately say the DOW has pretty much flat-lined since mid May. It's gone up about 400 points since then but, that's nothing compared to what it was doing between January 1st through May 17th where it went up over 2000 points. Consequently, the profits on my retirement fund are down more than $4000.00 over where they could have been if the market had maintained the rate of increase during the first half of the year.

bizguy



Now Do people recall a conspiracy/rumor that Obama was going to take peoples retirement plans 401ks?

Well you should because when this bubble pops, and it will, people are going to loose massively out of their retirement plans even worse than they did during 9/11. And I knew people who lost 100's of thousands of dollars from their retirement that they had worked all their life for after 9/11.

It's a foolish move to save all (even most) of your retirement money inside a 401k plan. If you are close to retirement (within 10 years), one bad year can wreck your retirement plans. If you are young and some day end up with a large nest egg inside your 401k plan, taxes will eat a significant portion of your savings. Does anyone believe tax rates are going down in the future?

Guest


Guest

bizguy wrote:Now Do people recall a conspiracy/rumor that Obama was going to take peoples retirement plans 401ks?

Well you should because when this bubble pops, and it will, people are going to loose massively out of their retirement plans even worse than they did during 9/11. And I knew people who lost 100's of thousands of dollars from their retirement that they had worked all their life for after 9/11.

It's a foolish move to save all (even most) of your retirement money inside a 401k plan.  If you are close to retirement (within 10 years), one bad year can wreck your retirement plans.  If you are young and some day end up with a large nest egg inside your 401k plan, taxes will eat a significant portion of your savings.  Does anyone believe tax rates are going down in the future?
Lots of working middle aged middle class people have thier retirment in 401s. a big hit like the one coming could set them back 20 years.

I also have an IRA myself but I do beleive it would still be hit by a market crash. correct me if I am wrong.

what is your alternative to 401s and IRA's?

ZVUGKTUBM

ZVUGKTUBM

401(k) Balances At Record High

http://money.cnn.com/2013/11/14/retirement/401k-balances/index.html?hpt=hp_t2

Don't complain about it; enjoy it while it lasts. I saved heavily in my 401(k) the last few years I was employed full-time. I converted it later to an IRA outside of my employer's plan with a different mutual fund company.

I could start taking distributions from it now, but I haven't started using it yet. I hope to let it ride another 3 years, and start using it at age 65. Of course, you must commence taking distributions by age 70.5.

The stock market goes up and the stock market goes down. You just have to ride along with it.  

The alternative is to stuff money in a mattress. Just don't keep all of your eggs in one basket, and don't hold a lot of personal debt when you expect to retire.

http://www.best-electric-barbecue-grills.com

ZVUGKTUBM

ZVUGKTUBM

ImpishScoundrel wrote:I monitor and record the DOW results everyday.  I can accurately say the DOW has pretty much flat-lined since mid May.  It's gone up about 400 points since then but, that's nothing compared to what it was doing between January 1st through May 17th where it went up over 2000 points.  Consequently, the profits on my retirement fund are down more than $4000.00 over where they could have been if the market had maintained the rate of increase during the first half of the year.
Look at the bright side.... Year end dividends and/or capital gains should be very nice in 2013. If your shares are down a little, your dividends will be re-invested at a lower share price, and you will have more shares.

That is what Dollar Cost Averaging is all about!

I am looking forward to the December payouts, for sure.....

http://www.best-electric-barbecue-grills.com

bizguy



Lots of working middle aged middle class people have thier retirment in 401s. a big hit like the one coming could set them back 20 years.

I also have an IRA myself but I do beleive it would still be hit by a market crash. correct me if I am wrong.

The majority of retirement assets are in 401k type plans or IRAs.  How those dollars are impacted by a market correction depends on what type of assets they are invested in.  Most folks use mutual funds within their plans so they are very susceptible to a market correction.  

what is your alternative to 401s and IRA's?

I won't provide specifics because 1) I don't think it's appropriate for me to promote my business on this forum; and 2) I'm one of those greedy capitalists that gets paid well for my professional advice. Smile However, my general rule of thumb is to advise a client that has a 401k with a company match to fund the 401k up to the employer match limit. Don't turn away free money.  Then, I usually recommend funding a Roth IRA (if qualified) with an appropriate asset. Tax free distribution almost always trumps tax deferred. Conventional wisdom says save for retirement with pre-tax dollars and pay the tax at distribution. Conventional wisdom is wrong. If a client wants to save more for retirement or doesn't qualify for a Roth IRA I have several options to save money in a tax advantaged way.

bizguy



Don't complain about it; enjoy it while it lasts. I saved heavily in my 401(k) the last few years I was employed full-time. I converted it later to an IRA outside of my employer's plan with a different mutual fund company.

I could start taking distributions from it now, but I haven't started using it yet. I hope to let it ride another 3 years, and start using it at age 65. Of course, you must commence taking distributions by age 70.5.


It appears you have made some good plans for your retirement.  However, many people don't have the option of delaying the distribution of their 401k balance once they retire.  If they listen to most of the so-called experts they could be in for a major reduction in their retirement income or be forced to delay retirement.


The stock market goes up and the stock market goes down. You just have to ride along with it.  


Not true.  There are ways to make some pretty impressive long-term gains without the market risks.

The alternative is to stuff money in a mattress. Just don't keep all of your eggs in one basket, and don't hold a lot of personal debt when you expect to retire.

I agree with your comments on reducing personal debt and diversification.    However, there are other options available for saving for retirement.

Guest


Guest

Debt is the new gold... I just acquired a large chunk of it.

boards of FL

boards of FL

Markle wrote:
Chrissy wrote:anyone care to answer?
The money being pumped out by the Fed. every month doesn't go directly to the stock market but rather through a circuitous route.

Companies are not expanding, they have no clue what taxes they are facing or what comes with ObamaCare and MORE regulations.  People are not buying as many big ticket items for the same reason.  So eventually the money, which is going to make the top 5% even richer through the policies of President Barack Hussein Obama arrives there in the stock market.  It's the only thing showing a return.

Many companies, instead of expanding, are buying back more of their own stock.  Which raises their own stock prices.

This is the historic supply of money in circulation.  Do you see anything resembling a bubble?

Why does the stock market keep going up? 1112013SupplyofMone


Good thing we have an expert here because I've been wondering about Chrissy's question myself.

So, Markle, when the Fed unwinds its policy, will the stock market crash back down to the levels seen before the money-pumping policy began?  I mean, if that is the only reason the stock market is where it is...


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boards of FL

boards of FL

ImpishScoundrel wrote:Consequently, the profits on my retirement fund are down more than $4000.00 over where they could have been if the market had maintained the rate of increase during the first half of the year.

Damn. The second half of the year couldn't keep up with the first half of the year, which saw a gain of 15+% in just 5 months -, which is greater than the annual average gain of the previous 100 years. Shitty shitty times we live in.


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ImpishScoundrel

ImpishScoundrel

boards of FL wrote:
ImpishScoundrel wrote:Consequently, the profits on my retirement fund are down more than $4000.00 over where they could have been if the market had maintained the rate of increase during the first half of the year.
Damn.  The second half of the year couldn't keep up with the first half of the year, which saw a gain of 15+% in just 5 months -, which is greater than the annual average gain of the previous 100 years.  Shitty shitty times we live in.
I was doing nothing except stating fact, I wasn't complaining. In fact, my profit margin is currently running around 32.88%. I can't say anything bad about that. So, piss off and quit being shitty. It stinks up the joint.

Markle

Markle

boards of FL wrote:
Markle wrote:
Chrissy wrote:anyone care to answer?
The money being pumped out by the Fed. every month doesn't go directly to the stock market but rather through a circuitous route.

Companies are not expanding, they have no clue what taxes they are facing or what comes with ObamaCare and MORE regulations.  People are not buying as many big ticket items for the same reason.  So eventually the money, which is going to make the top 5% even richer through the policies of President Barack Hussein Obama arrives there in the stock market.  It's the only thing showing a return.

Many companies, instead of expanding, are buying back more of their own stock.  Which raises their own stock prices.

This is the historic supply of money in circulation.  Do you see anything resembling a bubble?

Why does the stock market keep going up? 1112013SupplyofMone

Good thing we have an expert here because I've been wondering about Chrissy's question myself.

So, Markle, when the Fed unwinds its policy, will the stock market crash back down to the levels seen before the money-pumping policy began?  I mean, if that is the only reason the stock market is where it is...
In my opinion, the Fed is trapped. Much like the Japanese have trapped themselves with the printing of money. If the Fed stops printing money and did nothing, that vacuum would have to be filled from some place. If the Fed does what it has in the past, and start soaking up those dollars, that too has to come from someplace. People would take money out of the stock market and buy treasury notes.

Japan did this for 10 years, have not recovered yet and it is called their lost decade.

We are in a serious, serious trouble.

knothead

knothead

If Romney had somehow won the election and the stock market were soaring as it is currently all you wing nuts would be hollering "Hell yeah", see?

Guest


Guest

knothead wrote:If Romney had somehow won the election and the stock market were soaring as it is currently all you wing nuts would be hollering "Hell yeah", see?
I think by now with the gravity of the situation 5 years later we would have owned up. something most lefties cant do ever even when reality is in your face.

and had Romney pushed obamacare on me, I would have hated him just as much.

but you are trying to change the subject. you all have learned well from your masters.

TEOTWAWKI

TEOTWAWKI

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.”
― Andrew Jackson

There is nothing new under the sun...Bible

ZVUGKTUBM

ZVUGKTUBM

knothead wrote:If Romney had somehow won the election and the stock market were soaring as it is currently all you wing nuts would be hollering "Hell yeah", see?
Oh, hell yes they would! Razz 

http://www.best-electric-barbecue-grills.com

Guest


Guest

ZVUGKTUBM wrote:
knothead wrote:If Romney had somehow won the election and the stock market were soaring as it is currently all you wing nuts would be hollering "Hell yeah", see?
Oh, hell yes they would! Razz 
oh really? you actually think I would be happy if Romney had cut reimbursements 52% for my profession causing me great hardship as obamacare has done? I don't think so.

Im way more loyal to myself and family than I am to ANY politician.

I'm not a liberal.

ZVUGKTUBM

ZVUGKTUBM

Dow Inches Closer to 16,000

http://money.cnn.com/2013/11/15/investing/stocks-markets/index.html?hpt=hp_t2

I wish Margin Call was around to comment on recent trends in the markets.

http://www.best-electric-barbecue-grills.com

2seaoat



Nothing real difficult to understand why the market has been strong. Corporate profits are at record levels. End of story.

Guest


Guest

2seaoat wrote:Nothing real difficult to understand why the market has been strong. Corporate profits are at record levels. End of story.
Unless we're heading for another completely unexpected blindsided outa nowhere didn't see that coming it's the R's fault...

BUBBLE..!!

2seaoat



The United States is the breadbasket of the world. Food demand is growing, and we have record productivity in our agricultural sector. We have a huge backload of infrastructure improvements and the construction industries are going to boom over the next decade. We are seeing cell phones return to America in New Mexico with MOTO, the Motorola smart phone, and in Bangledesh they are going on strike for higher wages. Those who exploit labor are finding state initatives in regard to the minimum wage and finally after thirty years of decline in the median income of Americans we are beginning to address the issue. The Market is doing just fine.

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