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Market recap: A broad-based surge in stocks propelled the Dow nearly 100 points higher than its...

Market recap: A broad-based surge in stocks propelled the Dow nearly 100 points higher than its previous all-time high close, led by financials, industrials and techs, sectors which underperformed yesterday. The move is seen as a strong fundamental signal on top of solid readings on U.S. manufacturing and services. With today's gains met by such deep rank-and-file skepticism, more upside could remain ahead.
Comments (12)
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    thats because things are much better now economically for most than every before in American history,. Great education for those who still try to confuse markets and the economy
    5 Mar 2013, 04:19 PM Reply Like
  • DavidTTaylor
    , contributor
    Comments (62) | Send Message
     
    @June1234
    Agree with you: US economy is recovering: http://alturl.com/9jck4
    6 Mar 2013, 03:20 AM Reply Like
  • User 353732
    , contributor
    Comments (4913) | Send Message
     
    This is not a "new high" in terms of what matters: real purchasing power.
    Only when measured by the fake dollar and viewed through the distorting prism of money illusion is this an achievement. This is the triumph of propaganda over economic reality.

     

    When measured in terms of real money, whether gold or oil or wheat, the purchasing power of the Dow on March5, 2013 is substantially lower than in 2007.
    5 Mar 2013, 04:34 PM Reply Like
  • Tack
    , contributor
    Comments (13576) | Send Message
     
    And, the conclusion drawn from this "real-dollar" analysis is precisely what? Investors would have been better off to sit out a huge rally because it is in nominal, "inflated" dollars?

     

    The reality is that life each day is and can only be measured in today's, right-this-minute dollars, not some discounted historical dollar that doesn't exist any more. So, the only objective of every investor should be to maximize the quantity of nominal dollars one holds each and every day. Inflation is a reason for each of us to strive to make investments perform even better in nominal terms.

     

    There is no other game, but some only discover this way too late, after much damage has been done, measuring things in yesterday's nonexistent dollars.
    5 Mar 2013, 06:33 PM Reply Like
  • kashtan
    , contributor
    Comments (13) | Send Message
     
    There is some level of regret sitting this out among us, no doubt. However, the truth is that the FED QEs with ZIRP (whichever name you put on that) is a direct debt monetization and something in flat and outright contradiction to what they taught us as kids and in schools, colleges and what all economists were preaching until now.

     

    We were taught and preached that money supply needs to be controlled, that no one can print money out of the blue, that Weimar Republic and Zimbabwe were great examples of failed money printing.

     

    Then this government in symphony with central bank decides otherwise - to the disbelieve of great part of population - that they can print money out of the blue.

     

    Under normal circumstances the responsible ones would have picked the cherries out of failed economy and steer the economy and the society in the right balanced direction.

     

    The people in power, however, decided otherwise - to save the status quo where gamble is rewarded over prudent financial decision.

     

    I mean how can you invest in the economy which relies on debt monetization? Where government says it needs more money and so they will print new money?

     

    Under normal circumstances the 10 year interest rates should have been 10% because no one would be willing to lend money to government with such deficit and trust me - under pressure the things would go much faster in the right direction.

     

    Ehh, whatever...
    5 Mar 2013, 09:19 PM Reply Like
  • David Pinsen
    , contributor
    Comments (1050) | Send Message
     
    That's true: in inflation-adjusted dollars, it's not an all-time high. I mentioned that in this blog post, which also shows a way to hedge the Dow: http://seekingalpha.co...
    6 Mar 2013, 02:54 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1095) | Send Message
     
    Coupon clipping is at an all time high, which means that Main Street isn't feeling it. A rally unsupported by retail investors and/or consumers isn't worth spit IMHO.
    5 Mar 2013, 05:35 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    You want middle class Americans taking a second mortgage to speculate in the market, otherwise all is lost?
    5 Mar 2013, 09:09 PM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    My account disagrees with you. $$$$
    5 Mar 2013, 05:55 PM Reply Like
  • wykie722
    , contributor
    Comments (10) | Send Message
     
    Keep in mind that your dollar is worth much less than it did in 2007. So yes, your account reflects a much larger number, but those numbers are not worth the same dollars they were 6 years ago. Bernanke's printing press is in full effect and devaluing our currency thus giving you the illusion of wealth. This is basic economics- I can't seem to figure out why everyone is so excited about having more devalued dollars- stop printing and let the markets correct on their own. Hello CURRENCY WARS!!!
    5 Mar 2013, 06:23 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3816) | Send Message
     
    Well, for me, a plus is that the major debt I hold (house) is in 2007 dollars. Inflate away, as far as I'm concerned.
    5 Mar 2013, 06:33 PM Reply Like
  • kashtan
    , contributor
    Comments (13) | Send Message
     
    ... until you realize that a gallon of milk is 10 bucks, your nominal wage stuck at 2007 level and you have no money left to pay off your devalued mortgage and so loose your house... it does go both ways...
    5 Mar 2013, 09:23 PM Reply Like
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