Dow 13,000

[red states rule]

LOL...that's what I don't understand...how could anyone support our President and be a "small government" Conservative? It's IMPOSSIBLE...BUSH IS BIG GOVERNMENT.

and Dems want it even bigger

Republicans stayed home and look what we have now

 

[Delbert]

The dude (rsr) is a republican, and a republican cheerleader,
not a conservative...............
I figgered that much out a while back. Its useless to argue,
he will only spew his republican jargon, he will not think
outside his own little box..... Libs think this, libs do that,...
blah blah blah.....
Thats the problem in this country, its the 2 parties trying
to destroy each other, its not whats best for the country anymore.
RSR proves this. As a "republican" he sees no problems with
his own party. Its about destrying the other party,... at the expense
of the country. These two parties have taken this great country
to the brink of bankruptcy. Is it too late?....

 

[JeffWartman]

Since when are facts talking points?

LOL, typical Lib

 

[red states rule]

Another record close today - the US economy continues to roll along

 

[JeffWartman]

Another record close today - the US economy continues to roll along

Your unintelligence abounds

 

[red states rule]

Your unintelligence abounds

and your sulking is getting worse with each record close

 

[JeffWartman]

and your sulking is getting worse with each record close

Except for the fact that if you measure it correctly, the Dow is down.

 

[red states rule]

Except for the fact that if you measure it correctly, the Dow is down.

I hope it keeps going down

My 401K statements are looking good

 

[JeffWartman]

I hope it keeps going down

My 401K statements are looking good

How does it look when you try to buy overseas goods?

You have some of the most uneducated views on economics I've ever heard.

 

[red states rule]

How does it look when you try to buy overseas goods?

You have some of the most uneducated views on economics I've ever heard.

How many overseas goods do you have in your home

Stop sulking - it's not good for you

 

[JeffWartman]

How many overseas goods do you have in your home

Stop sulking - it's not good for you

Do you understand that when the dollar crashed and the Dow stays stable it looks like the Dow went up, but it really didn't?

 

[red states rule]

Do you understand that when the dollar crashed and the Dow stays stable it looks like the Dow went up, but it really didn't?

The doom and gloomers have not been right for five years - keep trying

 

[JeffWartman]

The doom and gloomers have not been right for five years - keep trying

LOL - you show how uneducated you are.

 

[red states rule]

The US economy is doing well, even in the manufacturing sector

A sector the doom and gloomers said was all but gone



NEW YORK — The nation's manufacturing sector showed surprising strength in April, growing at a faster-than-expected pace that helped accelerate prices, a trade group said Tuesday.

The Institute for Supply Management, based in Tempe, Ariz., said its manufacturing index registered 54.7, above the March reading of 50.9 and Wall Street's expectation of 51.

A reading above 50 indicates growth for the sector, while a reading below 50 indicates contraction.

http://www.foxnews.com/story/0,2933,269391,00.html

 

[red states rule]

Another record close today on Wall Street

Factory Orders Post Surprising Gains
Wednesday, May 02, 2007

WASHINGTON — U.S. factory orders showed solid gains in March, suggesting sluggishness in business spending may have been short-lived, but private sector hiring in April was modest, reports released Wednesday showed.

Orders at U.S. factories rose a greater-than-expected 3.1 percent in March on a rise in civilian aircraft orders, but were also greater for the first time since December when transportation orders were excluded, a Commerce Department report showed.

http://www.foxnews.com/story/0,2933,269646,00.html

 

[Toro]

Do you understand that when the dollar crashed and the Dow stays stable it looks like the Dow went up, but it really didn't?

I truly don't understand this.

I work in capital markets and I really don't know what you are talking about.

Could you put it in mathematical form?

 

[Toro]

I asked you what the Dow had to do with the economy. You didn't answer my question.

Okay it's difficult I know so let me make it plainer.

Question - what is the Dow?
Question - what is the nature of the relationship between the Dow and the US economy?


Supplementary questions.

1. Does the Dow drive the US economy?
2. If yes, how.
3. If not, then what does drive the US economy?

I see no one answered your posts so I will try.

The Dow Jones Industrial Average is a price-weighted index of the stocks of 30 large US companies the constructors of the index believe represent a cross-section of the US economy.

The relationship between the index and the US economy is very strong over the long run but can be weak or non-existent in the near-term. Or even the intermediate term. For example, between 1966 and 1982, the index rose exactly 0% in total, yet the economy grew by about 3% per year. Recently, the Dow has been rising because of extraordinarily strong corporate profits. The US economy is fine, but the rising Dow does not correlate to all parts of the economy.

The market does effect the economy, since it can convey confidence to consumers and business people. However, it can best be thought of a barometer of the economy instead. But the Dow can do poorly even if the economy is doing well because there other factors which effect the valuation of stocks, such as changes in interest rates, risk premiums, etc.

What drives the US economy? That is an enormous subject, far beyond the confines of this forum. However, politicians give themselves way, way too much credit (and blame towards the other guy) for the workings of the economy. Essentially, the US economy has risen by about 3% per year since the Depression, regardless of who was President or what taxes or government spending was doing. That is a testament to the industrious and ingenuity of the American people (and I'm a Canadian). Though governments do shape and effect the economy, it is the American people who are far, far more important agents in the dynamism of the American economy.