If market is forward looking, why does it ever go down?

Turveyd · Apr 30, 2020

1957may10 said:
Go sleep, my friend. Talk to you tomorrow.

just watching TV show, No DAX tomorrow so I'll sleep in till 12 most likely.

1957may10 · Apr 30, 2020

ElCubano said:
Where is JCP? LVLT? Imagine 30 years ago LVLT was at $130.

I like you memorize those. How about AOL?

hafez50 · Apr 30, 2020

Understand the powers control everything. For instance 20 yrs ago wall street waited with bated breath for the semi equipment index monthly . It swung the mkt for yrs .Then one day i never heard about it again . The powers told us it doesn't matter .The $'s strong and weak at time's but both are always good for the mkt. Interest rates low are good because it means people can borrow money cheap but high rates are ok because it means the economy's strong. Weak earnings can be ok at times because it means they can only get better so lets buy now. The bear the est's no matter how lowballed they are is another scam. All the noise means nothing. The only thing that matters are they going up or down and trade them .

1957may10 · Apr 30, 2020

hafez50 said:
Understand the powers control everything. For instance 20 yrs ago wall street waited with bated breath for the semi equipment index monthly . It swung the mkt for yrs .Then one day i never heard about it again . The powers told us it doesn't matter .The $'s strong and weak at time's but both are always good for the mkt. Interest rates low are good because it means people can borrow money cheap but high rates are ok because it means the economy's strong. Weak earnings can be ok at times because it means they can only get better so lets buy now. The bear the est's no matter how lowballed they are is another scam. All the noise means nothing. The only thing that matters are they going up or down and trade them .

Everything is relative. Sometimes you win. Sometimes you lose, but learn something good. Sometimes you close to win but lose. However, I never played lottery. Is market not kind of lottery?

1957may10 · Apr 30, 2020

hafez50 said:
Understand the powers control everything. For instance 20 yrs ago wall street waited with bated breath for the semi equipment index monthly . It swung the mkt for yrs .Then one day i never heard about it again . The powers told us it doesn't matter .The $'s strong and weak at time's but both are always good for the mkt. Interest rates low are good because it means people can borrow money cheap but high rates are ok because it means the economy's strong. Weak earnings can be ok at times because it means they can only get better so lets buy now. The bear the est's no matter how lowballed they are is another scam. All the noise means nothing. The only thing that matters are they going up or down and trade them .

Now we have volatility index, anti volatility index ( dead), negative oil price, other crap

MK020 · May 1, 2020

schizo said:
DO YOU BY CHANCE LIVE IN A CAVE? DID YOU NOT HEAR ABOUT THE WORLDWIDE ECONOMIC LOCKDOWN? HELLO?????!!!!!

IF THE MARKET IS TRULY FORWARD LOOKING, WE WOULD HAVE A VERY BEARISH MARKET. BUT WHY DON'T WE? BECAUSE THE MARKET ISN'T ABOUT LOOKING FORWARD TO COMPANY EARNINGS BUT HOW MUCH THE FED IS ABLE TO PRINT MONEY.

Fed plays a role but the market would not be where it is now if investors weren't looking forward, and it wouldn't react to treatment news more than it does current economic numbers if it wasn't forward looking. Question isn't if the market is forward looking (it obviously is), but rather why is there a limit in how forward they're willing to look. My best guess is because there really isn't any great investment alternative to equities at the movement in which people are transferring their money too. Was interested in other theories or explanations.

schizo · May 1, 2020

MK020 said:
why is there a limit in how forward they're willing to look. My best guess is because there really isn't any great investment alternative to equities at the movement in which people are transferring their money too. Was interested in other theories or explanations.

Personally, I don't believe in analyst estimate or the company guidance. Be that as it may, your question might be answered by the following.

PEG ratio allows investors to calculate whether a stocks price is overvalued or undervalued by analyzing both today's earnings and the expected growth rate for the company in the future. It is calculated as follows:

systematictrader · May 1, 2020

Turveyd said:
Used to do computer games, but ended up writing business software, shop, stock control, GPS tracking, Just in time order, some science crap, did some lean management turned a few companies around yep BORING!!!

I mainly chase skirt, ride Mountain Bikes and Climb Mountains very little work

Command n conquer generals? blizzard war craft 3?
red alert 1995 and 2?
Counter strike

any ring a bell?

Turveyd · May 1, 2020

systematictrader said:
Command n conquer generals? blizzard war craft 3?
red alert 1995 and 2?
Counter strike

any ring a bell?

Hate Warcraft but used to have Lan parties with the rest of them, you worked on i presume.

Did Armatracks C64 got paid back when i was 16 think it was code masters went under berore release, me and 1 mate, paradroid style shooter.

Much more fun, but games got huge needing huge teams, my graphics mate was doing Batman game until recently.

1957may10 · May 1, 2020

Turveyd said:
Hate Warcraft but used to have Lan parties with the rest of them, you worked on i presume.

Did Armatracks C64 got paid back when i was 16 think it was code masters went under berore release, me and 1 mate, paradroid style shooter.

Much more fun, but games got huge needing huge teams, my graphics mate was doing Batman game until recently.

When you “played” games I was writing “serious” soft for financial firm. Haha