Market is as dumb as the day is long. I think much of the move it is a results of momentum. Stocks got oversole short-term and managers will go with the flow and buy due to they are paid on performance. Also, they will justifiy the investment with the assumption that the stocks are cheap in their eyes.. Back in 07 the markets totally didn't see this coming. They assumed that it was normal for a 8 buck an hour worker to be able to buy a 700k home with no money down. That there would be no fall out from this yet back in 2000 there was a huge fallout from people daytrading their speculative money in net stocks. This time they were speculating with no money using 100x the leverage...Yeah markets always get it right.
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Market is as dumb as the day is long. I think much of the move it is a results of momentum. Stocks got oversole short-term and managers will go with the flow and buy due to they are paid on performance. Also, they will justifiy the investment with the assumption that the stocks are cheap in their eyes..
Jan 09 15:07 pm
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All Comments by momomiester »Why Aren't Stocks Falling? [View article]
Back in 07 the markets totally didn't see this coming. They assumed that it was normal for a 8 buck an hour worker to be able to buy a 700k home with no money down. That there would be no fall out from this yet back in 2000 there was a huge fallout from people daytrading their speculative money in net stocks. This time they were speculating with no money using 100x the leverage...Yeah markets always get it right.