Markets are in trouble.

And at what point does everyone pull out since the nation's currency is completely debasedy?

Not saying this is about to happen, but this "dollar down, stocks up" has to end somewhere.


Quote from Anekdoten:

Agree with Triple X.

With such a weak US$ a lot of money could potentially take this market to new highs from foreign investors with much stronger currencies.

Not to mention solid business from increased exportation.

Anek
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Quote from Triple X:

Don't forget, the dollar turning into toilet paper is GOOD for the market, because stocks increase in value via inflation. If a loaf of bread costs $10, GOOG will be $3K :eek: :eek: :eek:
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In theory, this makes sense. However, in reality of the situation it doesn't work as inflation is and has outpaced wage growth for some time now, forcing people to borrow against future earning to make ends meet. This is not a perpetual ride and is why the credit markets are going into dissarray. The debt now has reached a service load zenith and more borrowing is not an option for most.

The ONLY way your inflate out of weak dollar is if wage growth EXPLODED to meet the inflation, and that is not happening.
 
i think the fed is praying for a wage price hike spiral similar to the 70's. the problem is the global economy is much different than thirty years ago.
 
Quote from Comanche:

In theory, this makes sense. However, in reality of the situation it doesn't work as inflation is and has outpaced wage growth for some time now, forcing people to borrow against future earning to make ends meet. This is not a perpetual ride and is why the credit markets are going into dissarray. The debt now has reached a service load zenith and more borrowing is not an option for most.

The ONLY way your inflate out of weak dollar is if wage growth EXPLODED to meet the inflation, and that is not happening.
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All I am saying is stocks and commodities will rise with a weak dollar. The average man is going to get crushed. Joe Six Pack is not in this market anymore except via mutual funds. Assets will rise, food and energy costs will rise, wages will be kept in check by global pressures along with the downward pressure the illegals put on lower wage jobs. This country may be on the verge of becoming a second world country. It's not looking good right now, IMO.
 
"Joe Six Pack is not in this market anymore except via mutual funds"

that's kind of like saying "sally is not pregnant except for the fetus in her womb"

between 401k's, 403b's, roth's etc etc. public ownership of stock (either via mutual funds or via direct ownership) is incredibly high right now

also mutual fund cash levels are near record lows (3%)
 
Quote from whitster:

between 401k's, 403b's, roth's etc etc. public ownership of stock (either via mutual funds or via direct ownership) is incredibly high right now
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I'm not seeing that. Do you have a reference that shows that? I look at treasury flow of funds, and it just doesn't look like the average household ownership of stocks/mutual funds is very high as a historical percentage of household assets (sitting at about 25% last I've checked). Nothing like 2000 from what i see.
 
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