Doesn't anyone remember 2000?

Quote from FAST.AM:"remember greed and fear and with the market Greed come first....:
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I believe you have that reversed, fear is the more powerful emotion.
 
Quote from frank grimes:
10-05-07 11:12 AM
Just wanted mak and stock and the rest of the perma bullish crowd.....every once in a while you're dead wrong!
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Dead wrong about what? I wasn't aware that I said anywhere the market can't go down anymore ever?!
 
Quote from alex.samant:

someone mentioned the divergence between the stock market and the US dollar.

Well, first of all, more and more people are going to buy stock (talking about big foreign investors) when the USD is cheap as they will pay less.

Less and less big foreign investors are going to sell their shares when they get a lot less value for them, with the USD being cheap.

I think that this stock market is being kept up by the US dollar dropping.

The moment the US Dollar will come back to value vs the euro and the yen, then will be a good time to drop the pressure on stocks.

just my 2 cents
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When the USD is worth less, dosen't it take more of that USD to move the same share? I know the market isn't logical so that's why I'm asking for clarificatation. Seems to me as the USD goes down, the market would go up until people fail to see the value and than tank from the selling pressure and the inflated prices.

Thoughts?

Added---
I get your point on why foreign investors would jump in now since their currency is worth more than the USD. I'm thinking more about the US participants.
 
when the USD drops it can cause foreigners to bail. you think they're going to enjoy watching the value of their holdings keep dropping? there's a breaking point that hasn't been reached yet.

look at this scenario, stocks start to sell off when foreigners dump US assets, yields on bonds go up, yen moves up, etc. quant funds kick in selling positions and even shorting. now with no limits on shorting only on an uptick this could cause the market to drop even faster than it otherwise would.
 
Here is a big difference between 2007 and 2000:



% Gain in S&P

2000 -10.14%
1999 19.53%
1998 26.67%
1997 31.01%
1996 20.26%
1995 34.11%


So, with perfect hindsight it was obvious that people were nuts in 2000 to think that the S&P could keep gaining 20 - 30% EVERY freaking year! Who needed leverage?

Where are we so far in 2007?

2006 13.62%
2005 3.00%
2004 8.99%
2003 26.38%
2002 -23.37%
2001 -13.04%

Doesn't really look all that frothy does it?
 
Quote from Jaxon:

Here is a big difference between 2007 and 2000:



% Gain in S&P

2000 -10.14%
1999 19.53%
1998 26.67%
1997 31.01%
1996 20.26%
1995 34.11%


So, with perfect hindsight it was obvious that people were nuts in 2000 to think that the S&P could keep gaining 20 - 30% EVERY freaking year! Who needed leverage?

Where are we so far in 2007?

2006 13.62%
2005 3.00%
2004 8.99%
2003 26.38%
2002 -23.37%
2001 -13.04%

Doesn't really look all that frothy does it?
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Shush!...Info like that could kill this resource:cool:
 
Quote from athlonmank8:

Down 160 today. Good call dipshit
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Athlon...you're full of anger dude! Even if they call u names you should roll with the punches & make your point without the vulgarity!
 
Quote from Jaxon:

Here is a big difference between 2007 and 2000:



% Gain in S&P

2000 -10.14%
1999 19.53%
1998 26.67%
1997 31.01%
1996 20.26%
1995 34.11%


So, with perfect hindsight it was obvious that people were nuts in 2000 to think that the S&P could keep gaining 20 - 30% EVERY freaking year! Who needed leverage?

Where are we so far in 2007?

2006 13.62%
2005 3.00%
2004 8.99%
2003 26.38%
2002 -23.37%
2001 -13.04%

Doesn't really look all that frothy does it?
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depends, if earnings drop P/E ratios go through the roof. then the markets look overvalued, then the returns would look 'frothy' over that period

you can't bubble out of a bubble and expect things to not blow up at some point. the bigger the balloon the bigger the bang.
 
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