Dow Jones Industrial Average Tops 40000 for the First Time

[MusicLover]

The Dow Jones Industrial Average crossed 40000 for the first time, a milestone that appeared implausible little more than two years ago when the Federal Reserve began raising interest rates to cool an overheated economy.
Gloom and doom forecasts abounded. When the central bank ended the era of ultralow rates that prevailed in the years following the global financial crisis, economists predicted painful consequences: a U.S. recession and rising unemployment.
Markets shuddered. The Dow industrials and other equity benchmarks ended 2022 with their biggest declines since 2008, the year Lehman Brothers collapsed.
But as the months passed, employers kept adding jobs. People kept spending, splurging on big-ticket items like cars and blowout getaways to see Taylor Swift. Inflation kept cooling. Perhaps most important, the recession predicted by so many economists hasn’t materialized, giving investors hope that stocks might keep climbing.
“Not only didn’t we have a recession, we had a robust economy with tight labor markets, healthy consumers who were consuming,” said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

MSN

I am so not surprised by any of this. trump wishes this happened when he was president so he could take the credit and we all know if he was president and the stock market tops 4K, he would be having a special press conference, crowing about it and taking credit for it.

The reality is that trump crashed the stock market. We all saw another round of huge losses to our 401k accounts.

I don't know about others, I had recovered all the trump losses by last year and have been making good gains ever since.

What really makes me angry is that if bush the first, the bush boy and trump had not destroyed the economy while president, we all would be multi millionaire above what we now have in our 401k accounts.

Instead we lost a lot of money for our retirement.

It has been happening for decades. Republicans destroy the economy and stock market, democrats clean up the mess and put us back on track.

America has the best economy in the world right now with the lowest inflation and unemployment.

 

[Gabriel_Bell]

It is a FACT: when the Democrats have the White House, investors do better. This has been true since the 1930's.

 

[MusicLover]

It is a FACT: when the Democrats have the White House, investors do better. This has been true since the 1930's.

Not just investors.

Everyone does well when democrats are in the White House.

 

[mark francis]

The Dow Jones Industrial Average crossed 40000 for the first time, a milestone that appeared implausible little more than two years ago when the Federal Reserve began raising interest rates to cool an overheated economy.
Gloom and doom forecasts abounded. When the central bank ended the era of ultralow rates that prevailed in the years following the global financial crisis, economists predicted painful consequences: a U.S. recession and rising unemployment.
Markets shuddered. The Dow industrials and other equity benchmarks ended 2022 with their biggest declines since 2008, the year Lehman Brothers collapsed.
But as the months passed, employers kept adding jobs. People kept spending, splurging on big-ticket items like cars and blowout getaways to see Taylor Swift. Inflation kept cooling. Perhaps most important, the recession predicted by so many economists hasn’t materialized, giving investors hope that stocks might keep climbing.
“Not only didn’t we have a recession, we had a robust economy with tight labor markets, healthy consumers who were consuming,” said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

MSN

I am so not surprised by any of this. trump wishes this happened when he was president so he could take the credit and we all know if he was president and the stock market tops 4K, he would be having a special press conference, crowing about it and taking credit for it.

The reality is that trump crashed the stock market. We all saw another round of huge losses to our 401k accounts.

I don't know about others, I had recovered all the trump losses by last year and have been making good gains ever since.

What really makes me angry is that if bush the first, the bush boy and trump had not destroyed the economy while president, we all would be multi millionaire above what we now have in our 401k accounts.

Instead we lost a lot of money for our retirement.

It has been happening for decades. Republicans destroy the economy and stock market, democrats clean up the mess and put us back on track.

America has the best economy in the world right now with the lowest inflation and unemployment.

Still wet behind the ears MSM leftist weenies are probably unaware that high stock market numbers are absolutely not an irrefutable indication of a good economy. The Stock Marke reached a historic high on 9-3-29, less than 2 months before the October crash that plunged the US into a decade long deep fiscal depression.

 

[Boris Norris]

Still wet behind the ears MSM leftist weenies are probably unaware that high stock market numbers are absolutely not an irrefutable indication of a good economy. The Stock Marke reached a historic high on 9-3-29, less than 2 months before the October crash that plunged the US into a decade long deep fiscal depression.

It was used by Trump to indicate how good he was. You even boasted about it.

 

[mark francis]

It was used by Trump to indicate how good he was. You even boasted about it.

Are we in agreement that the high reached in the 1929 stock market was a harbinger of the impending financial crash? If so, what about the current high in today's stock market?

 

[Gabriel_Bell]

Are we in agreement that the high reached in the 1929 stock market was a harbinger of the impending financial crash? If so, what about the current high in today's stock market?

There were many factors involved in the 1929 crash. But the main problem was that people were buying stocks on borrowed money. I think all you had to put down was 10%, so when the stock price went down 10%, you had nothing. People were buying stock on the margin, using money lent by the brokers.

Of course in 1929, brokers charged large commissions. I can buy ETF's, stock and many mutual funds with no commission at all.
But that is recent. Commissions were a major thing until Schwab, Fidelity, TR Price and Scottrade (now TD Bank) all abolished commissions.

 

[Boris Norris]

Are we in agreement that the high reached in the 1929 stock market was a harbinger of the impending financial crash?

No. Here's the reason. You'll see it was a tightening of policy by the reserve.

Stock market crash of 1929 | Summary, Causes, & Facts

Stock market crash of 1929, a sharp decline in U.S. stock market values in 1929 that contributed to the Great Depression of the 1930s, which lasted approximately 10 years and affected both industrialized and nonindustrialized countries in many parts of the world. Learn more about the crash in...

www.britannica.com

If so, what about the current high in today's stock market?

It isn't so. Why didn't it happen when Trump boasted how wonderful it was then followed it with 7 trillion more debt.

 

[mark francis]

There were many factors involved in the 1929 crash. But the main problem was that people were buying stocks on borrowed money.

So you admit living large on borrowed money is a recipe for disaster? That is exactly why democrat spending policies and programs are so dangerous.

 

[Boris Norris]

So you admit living large on borrowed money is a recipe for disaster? That is exactly why democrat spending policies and programs are so dangerous.

He is talking about private citizens borrowing to invest. Not the govt you idiot.

 

[Gabriel_Bell]

He is talking about private citizens borrowing to invest. Not the govt you idiot.

Mark is not an actual capitalist and does not have a clue about how Wall Street works.
The problem was that the investors (actually speculators) were borrowing money from the brokerage companies. You could buy on a 10% margin for a while then. That means that you could buy 100 shares for the price of ten shares, and the collateral was the money you paid. If the stock dropped 10% in value, then you owned zilch. In 1929, there were hundreds more brokerage houses, making large commissions. But when the market collapsed, many of them were also ruined.

In 1932, the country was fed up with Wall Street and FDR managed to pt in a lot of reforms that prevent a repeat of 1929. It involves planning for an annual inflation rate of 2% or so to serve as a sort of cushion to prevent cashes like that of 1929.

No one was borrowing money from the government to invest. That was not what caused the crash. The crash happened because of too little regulation.

I pay 100% of the price of the stock I buy, I never have bought on a margin. Nor do I mess with puts and calls and options. I leave such things to people who know far more than BDO.

Investors are of three types: owners, trades and speculators.
Owners buy shares and hold them for as long as they fulfill the reason they were bought. Dividends are important to owners.
Traders buy shares believing they are likely to increase in value in generally under one year. They care less about dividends.
Speculators (often called Day Traders) buy shares in order to profit from short term gains. From a minute to perhaps a week. Speculators are not concerned with dividends except as they influence the stock price.

Nowadays, speculators tend to buy options. There are dozens of clever tricks that are supposed to make this profitable. I have known three day traders and two were utter disasters, they lost their money and the relatives' money as well. The other guy was pretty much incommunicado about how well he did. But I do know he had a fancy home and was not evicted.

 

[Boris Norris]

Mark is not an actual capitalist and does not have a clue about how Wall Street works.
The problem was that the investors (actually speculators) were borrowing money from the brokerage companies. You could buy on a 10% margin for a while then. That means that you could buy 100 shares for the price of ten shares, and the collateral was the money you paid. If the stock dropped 10% in value, then you owned zilch. In 1929, there were hundreds more brokerage houses, making large commissions. But when the market collapsed, many of them were also ruined.

In 1932, the country was fed up with Wall Street and FDR managed to pt in a lot of reforms that prevent a repeat of 1929. It involves planning for an annual inflation rate of 2% or so to serve as a sort of cushion to prevent cashes like that of 1929.

No one was borrowing money from the government to invest. That was not what caused the crash. The crash happened because of too little regulation.

I pay 100% of the price of the stock I buy, I never have bought on a margin. Nor do I mess with puts and calls and options. I leave such things to people who know far more than BDO.

Investors are of three types: owners, trades and speculators.
Owners buy shares and hold them for as long as they fulfill the reason they were bought. Dividends are important to owners.
Traders buy shares believing they are likely to increase in value in generally under one year. They care less about dividends.
Speculators (often called Day Traders) buy shares in order to profit from short term gains. From a minute to perhaps a week. Speculators are not concerned with dividends except as they influence the stock price.

Nowadays, speculators tend to buy options. There are dozens of clever tricks that are supposed to make this profitable. I have known three day traders and two were utter disasters, they lost their money and the relatives' money as well. The other guy was pretty much incommunicado about how well he did. But I do know he had a fancy home and was not evicted.

Marks whole motive is to blame Biden if it collapses.
The irony is the said nothing when the GFC happened under GWB but never acknowledged it was Obama who dragged USA out of the shit.

 

[mark francis]

He is talking about private citizens borrowing to invest. Not the govt you idiot.

The same principles apply. The US government cannot keep spending more and more money it only borrows but does not earn.

CBO Outlines Negative Implications of High & Rising National Debt | Committee for a Responsible Federal Budget

2023-08-17-In its June 2023

www.crfb.org

CBO Outlines Negative Implications of High & Rising National Debt​

AUG 17, 2023
ECONOMICS
In its June 2023 Long-Term Budget Outlook, the Congressional Budget Office (CBO) dedicated an entire section to discussing the risks and threats of high and rising federal debt and deficits. CBO’s analysis focused on five main consequences:

• Reduced economic growth
• Higher interest payments to foreign investors
• Increased risk of a fiscal crisis
• Vulnerability to higher interest rates
• Less fiscal space to respond to emergencies and other priorities

Given that the national debt held by the public is on track to exceed its record as a share of the economy in just six years, surpass 115 percent of Gross Domestic Product (GDP) by 2033, and reach 181 percent of GDP by 2053, the adverse consequences of debt will become more and more likely over the coming decades.

 

[Boris Norris]

The same principles apply. The US government cannot keep spending more and more money it only borrows but does not earn.

CBO Outlines Negative Implications of High & Rising National Debt | Committee for a Responsible Federal Budget

2023-08-17-In its June 2023

www.crfb.org

CBO Outlines Negative Implications of High & Rising National Debt​

AUG 17, 2023
ECONOMICS
In its June 2023 Long-Term Budget Outlook, the Congressional Budget Office (CBO) dedicated an entire section to discussing the risks and threats of high and rising federal debt and deficits. CBO’s analysis focused on five main consequences:

• Reduced economic growth
• Higher interest payments to foreign investors
• Increased risk of a fiscal crisis
• Vulnerability to higher interest rates
• Less fiscal space to respond to emergencies and other priorities

Given that the national debt held by the public is on track to exceed its record as a share of the economy in just six years, surpass 115 percent of Gross Domestic Product (GDP) by 2033, and reach 181 percent of GDP by 2053, the adverse consequences of debt will become more and more likely over the coming decades.

That explains the consequences of increasing debt. It DOES NOT say it will cause a recession. The borrowings are secured at the federal reserve which also invest heavily in the stock market to make money to.lend to the govt. But you wouldn't know that.

 

[Gabriel_Bell]

The same principles apply. The US government cannot keep spending more and more money it only borrows but does not earn.

CBO Outlines Negative Implications of High & Rising National Debt | Committee for a Responsible Federal Budget

2023-08-17-In its June 2023

www.crfb.org

CBO Outlines Negative Implications of High & Rising National Debt​

AUG 17, 2023
ECONOMICS
In its June 2023 Long-Term Budget Outlook, the Congressional Budget Office (CBO) dedicated an entire section to discussing the risks and threats of high and rising federal debt and deficits. CBO’s analysis focused on five main consequences:

• Reduced economic growth
• Higher interest payments to foreign investors
• Increased risk of a fiscal crisis
• Vulnerability to higher interest rates
• Less fiscal space to respond to emergencies and other priorities

Given that the national debt held by the public is on track to exceed its record as a share of the economy in just six years, surpass 115 percent of Gross Domestic Product (GDP) by 2033, and reach 181 percent of GDP by 2053, the adverse consequences of debt will become more and more likely over the coming decades.

Do those who know, know CBO?

Recessions are one thing, the Stock Market is another, entirely different entity. And Mark is still clueless.