Doesn't anyone remember 2000?

Quote from mcichocki:

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?
More...

This is such a simple concept, why are so many people struggling over it?

The stocks have to go up in nominal terms just to stay even in real terms. Watch the dollar not the stocks, once that stabilizes, then the market will take its own direction.

Market going sideways would make most sense, since the economic situation is on a downslope but not a crash.

Watch for the problems in Europe to unwind, it's not like the Euro is the model currency with no money supply games. If that happens, you can see a big rush of capital into USA, just like in late 1990s.
 
Quote from Hydroblunt:

This is such a simple concept, why are so many people struggling over it?

The stocks have to go up in nominal terms just to stay even in real terms. Watch the dollar not the stocks, once that stabilizes, then the market will take its own direction.

Market going sideways would make most sense, since the economic situation is on a downslope but not a crash.

Watch for the problems in Europe to unwind, it's not like the Euro is the model currency with no money supply games. If that happens, you can see a big rush of capital into USA, just like in late 1990s.
More...

Thanks, I just wanted another opinion in case I was off my rocker more than usual. LOL ;)

It seems quite obvious that as USD value sinks it won't go as far as it did before, including in the market.
 
Hydro is right. Money supply/ credit growth has been growing at well over 10 percent for years. The US has decided to not include asset price inflation in cpi because it is seductive and there arent any immediate problems. Why is China growing even faster than the US? because money supplly is growing at 20 percent a year! A fixed rate of 3 percent is causing people to flee to the stock market. We've been pulling this game for years.

Now CPI inflation is going to start taking over and it is going to crush profit margins.

If you want to keep up in real terms go with oil, metals, ags, farmland. Anything else and you are underperforming.
 
Quote from JamesVU2000:

Hydro is right. Money supply/ credit growth has been growing at well over 10 percent for years. The US has decided to not include asset price inflation in cpi because it is seductive and there arent any immediate problems. Why is China growing even faster than the US? because money supplly is growing at 20 percent a year! A fixed rate of 3 percent is causing people to flee to the stock market. We've been pulling this game for years.

Now CPI inflation is going to start taking over and it is going to crush profit margins.

If you want to keep up in real terms go with oil, metals, ags, farmland. Anything else and you are underperforming.
More...

money supply growth produces bubbles as people take on more and more risk. eventually it will blow up.
 
Quote from athlonmank8:

Futures down A/H again. -7.

Something still isn't feeling right here. I want it to bounce now.
More...

It will bounce, but not till most the weak hands are flushed out. It was left at LOD over the weekend to infuse panic in people and I bet we see them run to the hills early on. My guess is later near EOD or tomorrow we get the bounce.

I see some concerning distribution on the DJI but I don't think it's bear time just yet.
 
Quote from stock_trad3r:

Is the meltdown here yet?
More...

what are we gonna do? Make new highs lol? Look at a graph for fuck's sake. 2000-2003 was a slow volatile burn.

Anyways, im actually holding a few China longs overnight so I hope the market gaps up on APPL news.

Hell, I still wish I had held that SNDK long too. Ah well. Another good day on the books.
 
You must log in or register to reply here.
Back
Top