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Can anybody figure what makes the stock market go up or down

3Rfan

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Aug 23, 2002
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All 3 set record highs today and things ain't exactly going great guns around the country for a lot of things. Seems like I recall some folks on here predicting a big crash if Biden got elected.
 
They have been holding the interest rates at a very low rate.......if they raise them by 1% then it might not look so rosy. Feds been buying a lot of bonds as well to help things out. We will see what happens when the Feds raise short term interest rates.
 
All 3 set record highs today and things ain't exactly going great guns around the country for a lot of things. Seems like I recall some folks on here predicting a big crash if Biden got elected.
With interest rates held artificially low by the Fed there is almost no place else to put cash that you want to invest. People keep buying stocks at prices that are just not justified except the hope that someday some other idiot will pay you a lot more than you paid for it.
 
With interest rates held artificially low by the Fed there is almost no place else to put cash that you want to invest. People keep buying stocks at prices that are just not justified except the hope that someday some other idiot will pay you a lot more than you paid for it.

When you say "held artificially low," what exactly do you mean? Is there some other "natural" mechanism by which interest rates on borrowing money for banks to meet reserve balances are determined?
 
All 3 set record highs today and things ain't exactly going great guns around the country for a lot of things. Seems like I recall some folks on here predicting a big crash if Biden got elected.
Generally speaking, the market is high when future corporate profit expectations are high. With the Dems “tax corporations and the rich” agenda wavering on the brink of collapse this makes for corporate profit optimism along with high demand for products in a lot of sectors of our economy.

Additionally, our monetary policy has made other investment instruments unattractive relative to equities. Some say the stock market is artificially high.
 
Generally speaking, the market is high when future corporate profit expectations are high. With the Dems “tax corporations and the rich” agenda wavering on the brink of collapse this makes for corporate profit optimism along with high demand for products in a lot of sectors of our economy.

Additionally, our monetary policy has made other investment instruments unattractive relative to equities. Some say the stock market is artificially high.
historically the Fed Funds rate has averaged around 5%,,,,,,,,,,it had never been pushed down to almost 0% until about 2010 when the Fed went all in to keep Obamas economy from tanking and it has been close to there for almost 11 years now
 
historically the Fed Funds rate has averaged around 5%,,,,,,,,,,it had never been pushed down to almost 0% until about 2010 when the Fed went all in to keep Obamas economy from tanking and it has been close to there for almost 11 years now
You mean December 2008 when Obama led the great economic collapse?
 
yep

and notice that when Trump was leading a robust expanding economy Fed Funds rate went up to 2.5%,,,,,,,,,as soon as Biden is elected they drop it back to zero because he is tanking our economy with more of the same policy decisions they made like the last time they were in office.
 
Wow, you seem to be missing a few facts in your assertions. The first was that the downturn in 2008 started in September around the time that John McCain was leading in the polls, and an Obama presidency was far from a sure thing. Second, the 2020 downturn started in March of 2020, long before Biden was even assured the nomination.
 
Wow, you seem to be missing a few facts in your assertions. The first was that the downturn in 2008 started in September around the time that John McCain was leading in the polls, and an Obama presidency was far from a sure thing. Second, the 2020 downturn started in March of 2020, long before Biden was even assured the nomination.
Are you sure you have your data right..... on Obama vs McCain in the Polls?






These polls all have Obama ahead of McCain in Sept.

And Come on Biden was assured of the Nomination once they put his name in the hat. Bernie never had a chance..... And the Polls had Biden ahead in March....

 
historically the Fed Funds rate has averaged around 5%,,,,,,,,,,it had never been pushed down to almost 0% until about 2010 when the Fed went all in to keep Obamas economy from tanking and it has been close to there for almost 11 years now

Obama didn't own the economy, nor did Trump, nor does Biden, etc. The Fed went all in to try to keep the American economy (yours and mine included) from tanking after a financial crisis. That is its long time stated purpose in raising and lowering the rate: to keep a stable economy, not too much expansion, not too much contraction.
 
Are you sure you have your data right..... on Obama vs McCain in the Polls?






These polls all have Obama ahead of McCain in Sept.

And Come on Biden was assured of the Nomination once they put his name in the hat. Bernie never had a chance..... And the Polls had Biden ahead in March....


Every Republican since Teddy Roosevelt has had a recession. That doesn't prove causation, but a high degree of correlation cannot be denied (which may mean something...or not). The real truth about the economy is that policy has little immediate effect and the economy runs in 5-6 year cycles (or is it 8-10? Depends on who you ask, which may be a small indication of the degree of certainty we should have when politicians or economists make certain assertions). Touting the economy by Republicans or Democrats or whoever is about the same as touting the weather (and some do, of course).
 
Are you sure you have your data right..... on Obama vs McCain in the Polls?






These polls all have Obama ahead of McCain in Sept.

And Come on Biden was assured of the Nomination once they put his name in the hat. Bernie never had a chance..... And the Polls had Biden ahead in March....

You have some very selective memory. How was Biden a sure thing once he put his name in there hat? He appeared to have NO chance before South Carolina voted.
 
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You have some very selective memory. How was Biden a sure thing once he put his name in there hat? He appeared to have NO chance before South Carolina voted.
Because the Democratic Part was not going to allow Bernie a Card Carrying Commie to get destroyed in 2020 as independent voters would not of swallowed that hammer and sickle. All other candidates where just window dressing, because Biden was the Best chance to unseat Trump.

Literally before the Nomination in the Poll I sited it was a done Deal and Biden Vs. Trump. NO mention of other candidates.
 
Are you sure you have your data right..... on Obama vs McCain in the Polls?






These polls all have Obama ahead of McCain in Sept.

And Come on Biden was assured of the Nomination once they put his name in the hat. Bernie never had a chance..... And the Polls had Biden ahead in March....

You are correct, and the stock market crashed at the end of September.
If you look at this list of polls, Obama was leading in August, but at the beginning of September McCain had basically a strong week or week and a half.
 
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