That explosion off of the October 9, close is out of hand.I expect them to start unwinding soon. If they continue with the expanision and take it up to 1840-1850 for the full 200 point ramp up. Then they'll have to do what I wrote about above. IMO
"Wal-Mart? Read the SPY chart sugar-lips. Liberals aren't the only ones pour money into the market.lol"
Yes that wasn't intended to be funny. Have you read Wal-Marts earnings report? They have a very large customer base. Maybe the largest of all retailers. In a consumer based economy. Wal-Mart isn't as optimistic as the White House. IMO
pennelopechase is a perfect example. Also, rates are lower today, not high. It's impossible to believe anyone doesn't know the rate that matters has fallen.
"c101001...., The rate is where it is. As a result of the FOMC artificially keeping it low. Or as a result of any other means that kept it low. The valuation on the S&P 500 is directly reflecting the low rate offered. This is an example of how the price of one asset class is reflected by the price of a comparative asset class."
I know and I got that. But the asset class of equities is reflecting an artificially induced low rate. Therefore the valuation on equities is artificially high by comparison. IMO
"Valuations of all assets are relative to each other"
Of course they are, I get that. But the valuation placed on the S&P 500 at Fridays close would be lower if interest rates were not artificially low as a result of the Fed.'s asset purchase program. By the way, the multiples you posted are out of date now. Those multiples are based on the October 30, close on SPY at $176.29 not $180.05. But they are very close to what you posted.
On the subjects of borrowing, lending. and interest rates. Real rates have been negative for a long time. Annual CPI was most recently reported at 1.18 percent and the one year treasury constant maturity rate is at 0.12 percent. The real rate of return is still negative.
Read Wal-Marts earnings report. They aren't as upbeat as you liberals about this economy.
It's been that way since they allowed the weeklies. The explosion off of the October 9, close is getting out of hand if you ask me. I expect them to start unwinding soon. Anything above resistance later today and early tomorrow could be it. I have to believe this years incredible run will be paired back some before year end. Otherwise the number of market analyst on the street who underperformed this year, will have impossible comps for next year. IMO
You must misunderstand the message written. The government sold one month bills at the highest rate in five years on Tuesday. There is increasing anxiety over whether the United States will avert a debt default. Today the Treasury sold new one month bills at a yield of 35 bps. That is almost three times the 12 bps yield on offer in last week’s auction of four week debt.
The last time the one month bill auction had a bid to cover of 2.75 was when we had panic in equities in March 2009. Negative real rates push investors into tangible assets. The suppression of the dollar cost per ounce of the yellow metal by global banking concerns offering sovereign govenrment debt continues.
It looks like the IMF is getting what it asked for. The one moth T Bill rate is now above LIBOR for the first time at least 12 years.
"I did not misunderstand. IT IS NOT A MARKET, therefore anyone calling it that and trading it is a frikkin clown"
You have indeed misunderstood my message. Then went on to offer an opinion of yours which was not sought by myself or anyone else as I recall. When you insist on misrepresenting what I wrote to you lose all credibility. Nowhere in my message did I write that this is a market. My message was on the topic of the purpose of this forum. It is apparent that this is a forum whose purpose you do not understand .
There is a very old and well accepted saying. Bad news sells newspapers. In todays digital information age the saying becomes magnified. IMO
The IMF report released today suggested fundamental tax reforms as part of actions to confront the longer term fiscal shortfall, including eliminating many exemptions and loopholes, and introducing a value-added tax and a carbon tax.
It credited the Federal Reserve's aggressive quantitative easing with keeping the economy on a sure footing as the government slashes spending.
I don't recall the IMF being on any ballot in 2012.
Thank you, and I do agree with the point you make. When put in context what you have labeled "factual data on what government is doing" is important. Very important. I however do not believe any disussions on "red sate vs blue state" or "Obama this and Boenher that" leads very often to meaningful conversations related to stock trading and investing in equities.IMO
I believe you misunderstood my message. I have no quarrel with your opinions. Your opinions are not what is in question. This forum has a purpose. It's purpose is for conversations related to stock trading and investing in equities. Not your personal political opinions on zionism, facism, or capitalism. I hope you understand that.