Dow, S&P 500 close at highest levels in 2 years

Modbert

Daydream Believer
Sep 2, 2008
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Market Report - Feb. 1, 2011 - CNNMoney.com

NEW YORK (CNNMoney) -- U.S. stocks started February with a bang Tuesday, with the Dow and S&P 500 closing above key psychological levels for the first time in more than two years, and the Nasdaq gaining almost 2%.

Investors overcame ongoing jitters over protests in Egypt and new developments in Jordan, where the king dismissed his government and appointed a new prime minister.

The Dow Jones industrial average (INDU) rallied 148 points, or 1.3%, to finish at 12,040, the highest June 19, 2008.

All but three of the 30 blue-chip components moved higher. A 5.5% jump in shares of Pfizer (PFE, Fortune 500) led the advance, with the drugmaker posting better-than-expected fourth-quarter earnings. Alcoa (AA, Fortune 500) and Bank of America (BAC, Fortune 500) were also big Dow gainers.

Well this certainly looks like good news, least on the surface. Thoughts USMB?
 
Market Report - Feb. 1, 2011 - CNNMoney.com

NEW YORK (CNNMoney) -- U.S. stocks started February with a bang Tuesday, with the Dow and S&P 500 closing above key psychological levels for the first time in more than two years, and the Nasdaq gaining almost 2%.

Investors overcame ongoing jitters over protests in Egypt and new developments in Jordan, where the king dismissed his government and appointed a new prime minister.

The Dow Jones industrial average (INDU) rallied 148 points, or 1.3%, to finish at 12,040, the highest June 19, 2008.

All but three of the 30 blue-chip components moved higher. A 5.5% jump in shares of Pfizer (PFE, Fortune 500) led the advance, with the drugmaker posting better-than-expected fourth-quarter earnings. Alcoa (AA, Fortune 500) and Bank of America (BAC, Fortune 500) were also big Dow gainers.

Well this certainly looks like good news. Thoughts USMB?

More proof of a major jobless recovery. Again, only a much bigger one this time.
 
A result of free money flowing into the system due to QE. Unfortunately, we're entering bubble territory and when it bursts, it won't be pretty.
 
Gold: $1,333/oz
Silver: $28.05/oz
Copper: $4.52/lb
Oil: $92.00/bbl
RBOB: $2.44/gal


But, thankfully, inflation is in check. :rolleyes:
A friend of mine grows rice in Texas.... he said last year prices were up 60%. So far this year (a month), they're up 40% and all indications are that prices will again double within the next few months.
 
Gold: $1,333/oz
Silver: $28.05/oz
Copper: $4.52/lb
Oil: $92.00/bbl
RBOB: $2.44/gal


But, thankfully, inflation is in check. :rolleyes:
A friend of mine grows rice in Texas.... he said last year prices were up 60%. So far this year (a month), they're up 40% and all indications are that prices will again double within the next few months.

Yep and his inputs will track those percentages pretty well too.
 
I'm scared shitless of the markets, and have been for 2 years. Had I left my money in, I'd just now be back to where I was.

Gold and silver have been the ticket for the last 2 years (smartest move of my entire life, and I was scared to death when I pulled the trigger), and will be for the next 2, at least. Buy and hold, and forgetaboutit. Then sell it in a couple of years, and send me a thank you card :)
 
Market Report - Feb. 1, 2011 - CNNMoney.com

NEW YORK (CNNMoney) -- U.S. stocks started February with a bang Tuesday, with the Dow and S&P 500 closing above key psychological levels for the first time in more than two years, and the Nasdaq gaining almost 2%.

Investors overcame ongoing jitters over protests in Egypt and new developments in Jordan, where the king dismissed his government and appointed a new prime minister.

The Dow Jones industrial average (INDU) rallied 148 points, or 1.3%, to finish at 12,040, the highest June 19, 2008.

All but three of the 30 blue-chip components moved higher. A 5.5% jump in shares of Pfizer (PFE, Fortune 500) led the advance, with the drugmaker posting better-than-expected fourth-quarter earnings. Alcoa (AA, Fortune 500) and Bank of America (BAC, Fortune 500) were also big Dow gainers.

Well this certainly looks like good news. Thoughts USMB?

Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.
 
Market Report - Feb. 1, 2011 - CNNMoney.com

NEW YORK (CNNMoney) -- U.S. stocks started February with a bang Tuesday, with the Dow and S&P 500 closing above key psychological levels for the first time in more than two years, and the Nasdaq gaining almost 2%.

Investors overcame ongoing jitters over protests in Egypt and new developments in Jordan, where the king dismissed his government and appointed a new prime minister.

The Dow Jones industrial average (INDU) rallied 148 points, or 1.3%, to finish at 12,040, the highest June 19, 2008.

All but three of the 30 blue-chip components moved higher. A 5.5% jump in shares of Pfizer (PFE, Fortune 500) led the advance, with the drugmaker posting better-than-expected fourth-quarter earnings. Alcoa (AA, Fortune 500) and Bank of America (BAC, Fortune 500) were also big Dow gainers.

Well this certainly looks like good news. Thoughts USMB?

Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.

the market is it's own entity now and is no longer really linked into reality much.

btw Lottery sales are down quite a bit.
 
Market Report - Feb. 1, 2011 - CNNMoney.com





Well this certainly looks like good news. Thoughts USMB?

Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.

the market is it's own entity now and is no longer really linked into reality much.

btw Lottery sales are down quite a bit.

You're actually making it more complex than it really needs to be, believe it or not.

The simple explanation is that there's been trillions of brand new dollars created and entered into the system, and that money needs to chase something.

It's obviously not chasing housing this time around.

I wonder what it might be chasing :dunno:
 
Highest levels in two years? Think about it lefties. Use two fingers to count if you have to. Who was in office for the last two years and where the hell did the Trillion dollars in stimulous money go?
 
Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.

the market is it's own entity now and is no longer really linked into reality much.

btw Lottery sales are down quite a bit.

You're actually making it more complex than it really needs to be, believe it or not.

The simple explanation is that there's been trillions of brand new dollars created and entered into the system, and that money needs to chase something.

It's obviously not chasing housing this time around.

I wonder what it might be chasing :dunno:

Just chasing more money. Gambling mostly on metals, food commodities and oil right now.
Along with investment in China.
Why do you think food prices are rising so much? A shortage? Nope speculation driving up the prices. and speculation on oil/energy drives up the prices of most everything.


Stocks are sort of like trading baseball cards.
 
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the market is it's own entity now and is no longer really linked into reality much.

btw Lottery sales are down quite a bit.

You're actually making it more complex than it really needs to be, believe it or not.

The simple explanation is that there's been trillions of brand new dollars created and entered into the system, and that money needs to chase something.

It's obviously not chasing housing this time around.

I wonder what it might be chasing :dunno:

Just chasing more money. Gambling mostly of metals, food commodities and oil right now.
Along with investment in China.

Stocks are sort of like trading baseball cards.

Money is always chasing more money, that is the ultimate given. I'm speaking of goods/services in this case. All this new money is chasing assets, specifically commodities and equities.

It's a lot like 2006 and 2007 all over again. The only difference is that this time around, I don't think there's going to be a deflationary collapse to kill all the crazy price increases.

This time I think we're in for some serious price inflation.

And we're seeing that even without any kind of actual recovery to speak of.

Imagine how bad it's going to be when people start getting their jobs back and money velocity picks up.

Or do we trust that the Fed Reserve has it all planned out? :rolleyes:
 
the market is it's own entity now and is no longer really linked into reality much.

btw Lottery sales are down quite a bit.

You're actually making it more complex than it really needs to be, believe it or not.

The simple explanation is that there's been trillions of brand new dollars created and entered into the system, and that money needs to chase something.

It's obviously not chasing housing this time around.

I wonder what it might be chasing :dunno:

Just chasing more money. Gambling mostly on metals, food commodities and oil right now.
Along with investment in China.
Why do you think food prices are rising so much? A shortage? Nope speculation driving up the prices. and speculation on oil/energy drives up the prices of most everything.

Stocks are sort of like trading baseball cards.
Sorry, but if I'm understanding your position correctly, I've got to say I disagree.

While I agree that commodity speculation (in some areas) is driving up some prices, there are also some shortages. For example, Georgia (think Europe, not USA) and Russia have both put curbs on exports of grains due to shortages while Asia is suffering rice shortages. Also, QE is driving prices as our dollar is weakening.

Prices in gold and silver are rising because those two metals are the only real "money" there is. Money is NOT currency and Currency is NOT money.

Lastly, what's driving the market is the free currency the banks/brokerage houses are getting from the Federal Reserve Bank. They're using that currency to buy stocks, thereby running up the market. They then sell their holdings and repay the FED having make whatever profit they were able to garner.

Look at this chart for PE ratios.... a clear indication the market is in a bubble.

dppr1-100801.gif


I haven't even touched on the housing bubble that's forming in China and other parts of Asia....
 
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You're actually making it more complex than it really needs to be, believe it or not.

The simple explanation is that there's been trillions of brand new dollars created and entered into the system, and that money needs to chase something.

It's obviously not chasing housing this time around.

I wonder what it might be chasing :dunno:

Just chasing more money. Gambling mostly of metals, food commodities and oil right now.
Along with investment in China.

Stocks are sort of like trading baseball cards.

Money is always chasing more money, that is the ultimate given. I'm speaking of goods/services in this case. All this new money is chasing assets, specifically commodities and equities.

It's a lot like 2006 and 2007 all over again. The only difference is that this time around, I don't think there's going to be a deflationary collapse to kill all the crazy price increases.

This time I think we're in for some serious price inflation.

And we're seeing that even without any kind of actual recovery to speak of.

Imagine how bad it's going to be when people start getting their jobs back and money velocity picks up.

Or do we trust that the Fed Reserve has it all planned out? :rolleyes:

You are pretty much correct in as far as you are thinking on it.
How do you think we will have an economic recovery with the jobs situation, wages and personal debt being the way they are?
We WILL be paying more for the same stuff we already buy. We will not be buying more stuff, actually we will be buying less volume but paying more.

True growth would be brought about by more jobs and wage increases.
 
Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.

Well I definitely do have my own concerns. Especially concerning the rising price of food and the spectre of inflation.

I was commenting however that on the surface, the market being up is good. I put more stock into other recent economic news about how the economy is.
 
Good news that record amounts of people are not working and not spending, losing homes, going on welfare, etc, but somehow equity investment is up 100% from the '09 bottom?

I don't see how that's good for anyone else other than those who are in and have profited from the run-up. For anyone else who understands economics, that ought to bewilder and quite frankly scare the living shit out of them.

Well I definitely do have my own concerns. Especially concerning the rising price of food and the spectre of inflation.

I was commenting however that on the surface, the market being up is good. I put more stock into other recent economic news about how the economy is.
Two factors are intermixed and I don't see how they can be separated.

The US is the best of the worst by a wide margin and it will probably not get significantly worse here relative to the rest of the G20. NYC being, believe it or not, the lowest cost place to live compared to major non-US financial centers is one such example. So, the strategy is to inflate along with the rest of the major players and wait out the crisis.

Only Germany has a bigger inflation allergy than the US. Roosevelt in his second term and Reagan in his first term put the US in deep downturns to kill inflation in order to ensure landslide reelections. That will happen again either engineered by Obama or his successor in 2012.

What is being hoped for is that the China or EU meltdown will let disflation be relatively painless. That is becoming increasingly unlikely as Canada and Mexico get pulled into China's orbit.
 

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