General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPump and dump on the market is in full swing
Pump up the market for a few days. Get positive headlines out there like, "hey, the market has bottomed!", "invest your stimulus checks!", etc. See a big spike in prices. Get people back in at the highs, and then, slowly sell off.
Rinse and repeat.
ProfessorGAC
(64,877 posts)Their job right now is to preserve 401k & IRA value. That's how most of them get paid.
If you're right, they're fishing for guppies, not whales.
Yavin4
(35,423 posts)There's no rational nor logical reason why the market should be as high as it is right now. None. The world's economy is effectively shut down.
former9thward
(31,949 posts)Not right now. You may think the economy will be gloom and doom 6-9 months from now. The market does not. I agree with the market.
Yavin4
(35,423 posts)Without comprehensive testing? Without a vaccine? Without a cure? People are just going to jump on airplanes?
It's much more likely that there will be a second, more deadly outbreak before there will be an economic boom.
former9thward
(31,949 posts)But there will be an economy recovering. And there will be some certainty which investors like and is lacking now. There was not a cure for H1Ni in 2009-10 which caused 12,000 -19,000 U.S. deaths but we got past it. There has been 2 million tests so far in the U.S. and that is not a tiny number. It will only grow from there.
Yavin4
(35,423 posts)It's not even in the same class. Covid-19 can be passed from people who are asymptomatic. That's the difference. That's the danger.
ProfessorGAC
(64,877 posts)The capital infrastructure is still extant, and as bad as this will be, the infrastructure will be there for the consumer recovery.
So, while I concur it's a bit high, I don't see it falling below where it was when Obama was in office.
The shorting of cash positions & external investment has been a problem for a while now, but it's gotten worse as the tax cut seemed to be a piggy bank for too many companies.
But, if on Election DAT 2016, the Dow was 18,334. The 1.5% growth per month since then was dangerous ground, but some growth was reasonable, even if only 5 or 6% per year.
So, if the pandemic wipes out half that justifiable gain, it'd still be almost 20k.
Of course, we've already seen the market spooked into a massive correction, all at once.
So, no matter what, it's going to be bumpy.
Yavin4
(35,423 posts)We're not going to be normal any time soon so long as there is little to no testing and no cure.
ProfessorGAC
(64,877 posts)Celerity
(43,138 posts)no it is not
Must be nice in your world.