Stocks soar: Dow climbs 206

[SteadyMercury]

Since the dollar is worth less, there is no increase in value.

Yes the dollar is worth less. No, its decrease in value has not been anywhere near the increase in the stock market.

Wake the hell up.

Learn 2nd grade math.

 

[JWBooth]

Simply a reflection of the steady increase in the money supply.

 

[CrusaderFrank]

Dems <3 the 1%

 

[itfitzme]

Simply a reflection of the steady increase in the money supply.

It can be...but can you prove it...or present something that tends to demonstrate it to be a good candidate?

I'm not asking a rhetorical question.

As I recall, last I looked, that 208% increase in the money supply base didn't get out to M2, liquidity trap and everything. Then again, QE isn't M2.

Volume is important. It's price times volume. 1 stock selling at 14000 is the same as 10,000 at $14,000 right? The DOW average being on a weighted sample of selected stocks... It doesn't reflect the total volume of funds flowing.

We know, with certainty, that asset prices can rise on an increase in the supply of money available for purchasing them. We can even guarantee that it has happened before. Knowing it happened this time, with certainty, is something else. Question is, can we prove it?

 

[EdwardBaiamonte]

Simply a reflection of the steady increase in the money supply.

1) yes inflation is part of it

2) low interest rates make stocks look good which is precise Fed policy

3) but earning are good and seemingly support prices notwithstanding earnings are in part inflated too

4) danger is that we are in uncharted economic territory with China killing us, 16 trillion debt headed to $50 trillion, and the Fed having to take trillions out of the economy someday to avoid roaring inflation while keeping banks healthy.

5) but still USA's China's and Japan's huge interventionist monetary policy seems to argue that nothing can go too badly wrong as long as you maintain liquidity as central banks now do routinely.

Im sorry I missed this rally but its probably not to late to get in.