If You Think the Dow Did Well Today, You're Wrong 45 comments
September 19, 2008
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So you think the Dow had a great day today, the best in ages? The headlines agree with you, with banners everywhere trumpeting huge gains. But to one way of thinking, they're wrong -- at least when you get outside the box of thinking only about U.S. markets.
Why? Consider the following table ranking major markets around the world in terms of their gains today. The Dow? It ranked dead last, barely beaten by the Nasdaq Composite and the S&P 500. (Click chart to enlarge.)
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This article has 45 comments:
It's kind of weird. Dow goes down 4% because of financial problems in the US, and Hong Kong goes down 10% as a response.
A simple explanation is that most of Hong Kong's economy is financed by US money. US economy is a lot more than Dow.
Maybe so, but a comment like this doesn't add much value, either.
30-Jan-91 2,713
16-Jan-91 2,509
02-Jun-89 2,518
23-Aug-88 1,989
30-Nov-87 1,834
09-Nov-87 1,900
26-Oct-87 1,794
21-Oct-87 2,028
20-Oct-87 1,841
*19-Oct-87 1,739*
16-Oct-87 2,247
13-Oct-87 2,508
25-Aug-87 2,722
Here's a link to the Wall Street Week episode from that period
www.youtube.com/watch?...
For ALL the reasons others have posted, this article shows you cannot be objective. You've lost credibility.
It'll take a few more wallops with the sword to finally put them out of their misery.
Funny, I recall the days when you bought a stock based on its projected future income. What a rosy picture we have ahead of us, eh? AIG, GM, FM, etc were all "screaming bargains" at one point also.
I think not... I think there might be a little panic buying going on.. a little bit of stocking up now for the inevitable rise in prices post election...
I imagine next it will be lines at the bank to pull the last of the savings out before the Govt. grabs it to pay for the bailouts...
Interesting graphic kept flashing on CNBC yesterday... "Dow two day percentage gains largest in 79 years, since October 31, 1929".
Now THAT was a great time to go long, eh?
This type of article is best left to the Bespoke Investment Group that syndicates on Seeking Alpha as well.
See: bespokeinvest.typepad..../
Statistical comparisons is their expertise and they offer clients a lot more useful and comprehensive information at the push of a button.
Your insights in other areas are much appreciated.
Thank you,
CrossProfit
______________________...
I visited the Bespoke link you referenced and found their chart of global markets Sept 18-19*. For some reason the Bespoke chart excludes the S&P TSX (+8.7%) as well as US indicies. In addition it does not indicate the specific index they are measuring just the country of origin. Perhaps the complete anaylsis is on their subscription site.
* bespokeinvest.typepad....
There is a strong posibility that this short covering will turn into a broad based rally.
The state will own everything and you'll receive a monthly wage to pay for your expenses and limited amounts of food, guns and tapped water.
"...Friday's performance is ... is a measure of the investors approval ..."
"There is a strong posibility that this short covering will turn into a broad based rally"
______________________...
These two statements seem at odds with one another; am I missing something?
Basic houses in Colombia, Brazil, India, Odessa not to mention Timbuktu were and in some cases are selling for over half a million US dollars with borrowed money. In most cases banks cannot recover the properties or the losses.
Industrial loans specially to shipping sector, which financed the new building boom over past few years is a replica of housing boom. Twenty-year-old rust buckets are selling for $40 million dollars instead of scrap price. All paid not by the traditional ship-owners but banks and funds.
Hopefully, we will put all this behind and move ahead while others face hyperinflations and defaults, which will restore our position in the world markets. Our biggest strength lies in our unique ability to cut the losses and move on with business of making money.
Print this comment and read it again in 2 years time. But all bets are off if OBAMA is elected. That man has never held a proper job in his life. Leave alone buy a house with his own money.
This is so true. We all know about the decade plus time it has thus far taken the Japanese government to bail out their banks. China has similar problems in banking and a very large number of state-run firms that are nothing but dead weight on the system. Europe has supported industry with taxpayer financing to an even greater extent than us, if you can believe that. A lot of the problems associated with socialist policies take decades to balloon all while this old growth nation sees there population aging and a huge tax burden for the working population no obvious way out. Look at the troubles France has had with their unions. Once you give them anything it is impossible to take it back and the situation grows more dim. The last step as the population ages is to fling open your doors to new immigrants typically from the third world---Africa, the Middle East to work and pay taxes to support the old population. As they reproduce, the culture changes till that democratic nation becomes the next Islamic republic.
Monday opens with a massive drop in the market. Thought the several hundred point gain was good? The inverse x 2 or 3 is what I expect monday. Based on? Based on the fact that the market is run by completely insane people at hedge funds and other places who don't do anything remotely sane or logical. And will see the point gain from Friday as "Thats as good as its getting take that gain and sell everything!" Which we will see monday.
Also because no matter what *anyone* says or does come monday. no matter if if the market tanks or rallies again, these simple FACTS remain:
The US dollar is completely, totally, utterly worthless. It is a debt based fiat currency with absolutely NO value or worth. Period. Non debatable.
The Treasury of the US, IMO was ransacked long ago by the FED. Think we still have any gold at fort knox? :)
There is a reason the FED will not allow auditing of its books by Congress or anyone else. Three guesses as to why.
The FED since it's inception has been printing money out of thin air.
Completely out of air. Just flipping on the photo copier. The dollar is now not even worth the paper it's printed on because of the length, duration and amount of bills printed by the FED.
None of these facts are going to change. The dollar will crash just as soon as everyone wakes up and goes "Oh, yeah, thats true." to the facts above. There is no way out of this. There are trillions and trillions of dollars of uncountable derivatives, bad debt, etc that will now start to unwind from this credit mess. And the sooner it does and the dollar crashes the sooner we can move the hell on and finally start the discussion of a new value based currency again, shut the FED down! boot those bastards out of this country, and forbid a central bank ever being created here again.
But seriously, i'm not bitter. Really.
There are many places in the world where 4% daily swings are a "quiet" day of trading.