The Stock Market Has Officially Entered Crazytown Territory
It is time to crank up the Looney Tunes theme song because Wall Street has officially entered crazytown territory. Stocks just keep going higher and higher, and at this point what is happening in the stock market does not bear any resemblance to what is going on in the overall economy whatsoever. So how long can this irrational state of affairs possibly continue? Stocks seem to go up no matter what happens. If there is good news, stocks go up. If there is bad news, stocks go up. If there is no news, stocks go up. On Thursday, the day after Christmas, the Dow was up another 122 points to another new all-time record high. In fact, the Dow has had an astonishing 50 record high closes this year. This reminds me of the kind of euphoria that we witnessed during the peak of the housing bubble. At the time, housing prices just kept going higher and higher and everyone rushed to buy before they were "priced out of the market". But we all know how that ended, and this stock market bubble is headed for a similar ending.
It is almost as if Wall Street has not learned any lessons from the last two major stock market crashes at all. Just look at Twitter. At the current price, Twitter is supposedly worth 40.7 BILLION dollars. But Twitter is not profitable. It is a seven-year-old company that has never made a single dollar of profit.
Not one single dollar.
In fact, Twitter actually lost 64.6 million dollars last quarter alone. And Twitter is expected to continue losing money for all of 2015 as well.
But Twitter stock is up 82 percent over the last 30 days, and nobody can really give a rational reason for why this is happening.
Overall, the Dow is up more than 25 percent so far this year. Unless something really weird happens over the next few days, it will be the best year for the Dow since 1996.
more...
http://michaelsnyder.mensnewsdaily.com/2013/12/the-stock-market-has-officially-entered-crazytown-territory/
R. Daneel Olivaw
(12,606 posts)Common Sense Party
(14,139 posts)Well, small cap stocks have been overvalued most of 2013. Larger companies are now trading at multiples that give me pause. I don't see a bubble just yet. That's hyperbole. But, it's good to be cautious, and look for bargains elsewhere.
grantcart
(53,061 posts)Record stock prices reflect record profits.
If the ACA were to reach 10 million people who previously didn't have access to health care and that number included millions of people who had pent up demand for health care and treatment we could see an interesting one time minor additional stimulus for the first quarter.
Projections on future profits show softening so I doubt that the bull market will continue much longer and it certainly will not continue at the 2013 rate.
defacto7
(13,485 posts)But it will go down. It will go down hard too, but just hard enough to destroy the middle and lower level investor, destroy the real growth in our economy and funnel properties of real value and commodities over to the upper .5%. It 's not about building America and building a future for our children, it's about raping the world one controlled wave at a time.
This is the game and it's not over yet folks.
blkmusclmachine
(16,149 posts)LiberalElite
(14,691 posts)I hope I get laid off and my hands on my employer-provided 401K before that happens. Pathetic to have to think this way but there ya go.
KT2000
(20,544 posts)It will crash again and the first to sell off will make a ton of money like they have in previous crashes. The rest of the investors will be the donors.
silvershadow
(10,336 posts)that we have a capitalist economy.
Loudly
(2,436 posts)I call bullshit.
fasttense
(17,301 posts)Have to balance those budget somehow. And since Wall Street is so flush, Obama and the RepubliCONS make the military retirees pay.
Sunlei
(22,651 posts)of course these days banks pay zero to little people regular savings accounts. .85ish (point85) is about the best I can find in a usa savings account. wish we could have savings accounts in other countries,they pay much more, for example banks in Egypt pay 7%. American citizens little people are so screwed by American banks.
I get the feeling with crazy up stocks like twitter it is set-up for people to sell jan 2.
woo me with science
(32,139 posts)Dec 2013 - PBS Expose: Federal Reserve has decided its job is to push up the stock market.
http://upload.democraticunderground.com/10024213647
2009-Rep. Alan Grayson: "Has the Federal Reserve Ever Tried to Manipulate the Stock Market?"
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x377484