The reason the stock market is increasing

[burythehatchet]

is quite simple. First we should remember that a stock price is a reflection of all future cash flows for a given entity. Therefore, when a stock price increases, it is the market's way of saying that they are more optimistic about he future. If the price decreases, the reverse is true.

So why, all of a sudden, are prices going up? The answer is simple: There is an expectation that congress will be controlled by Democrats. If you look at the timing of market prices, you will see that there is a near 1:1 correlation between rising prices and rising expectations of a Democratic majority.

I just wish Democrats would begin touting this fact as opposed to worrying that it helps the Cons.

[bryant69]

1. Alternatively the big phonies that run the stock market are keeping it up

They want the illusion of a strong economy so that they can trick voters to support Republicans.

I find your theory more believable though.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[skids]

2. Actually I find yours more believable...

...given the 2 o'clock faeries have been pretty reliable and the general defiance of the fundamentals.

But the idea in the OP is very intriguing polemic. I think I'll bounce it off a few numnuts and see how it resonates around their hollow skulls.

[BelgianMadCow]

3. Tryin' for the Tacoma Bridge effect?

;-) I second that it's an interesting debate tactic.

[ncteechur]

5. There are two economies.

And most of us live within the shitty one.

[DemocratSinceBirth]

4. If The Big Boys Can Game The Market They Are Doing A Lousy Job

Adjusted for inflation the three major indices are lower now then when Bush took office.

You would be better off if you put your money in a market market or certificate of deposit.

[skids]

6. Ah but inflation is the suppressed figure.

That's the whole game. You'll notice that, not counting Mogambo of course, even the most bearish of analysts still insist on using the stock market figures unadjusted in their analysis for the most part. The official figures are bullcrap revisions of the old official figures, which were bullcrap to begin with, and it's generally agreed by anyone who looks into it for more than a few hours and has an open mind that the figures are much higher than the official ones. Which of course, even those official figures are not so rosy.

But it just sort of sits there in the corner of the room while people of all walks of life go about their business without even adjusting their mental picture of the value of a dollar to compensate. As such we end up with gung-ho investors who think everything is great, people who are no longer in the middle class but insist on believing that they are, and often vote like they are in the upper class to boot, and a propaganda and market manipulation machine that seems to have realized that people, yes, are indeed stupid enough to allow them to just shore up the stock market with inflated currency, sweeping the bad news under the carpet and allowing the dollar's value to soak up the mess they have made quietly and with no one (who can scream loud enough) the wiser.

And actually, you are not going to be well off with a CD or money market. They make 4-7% yield. Just to retain value, they would need to make 8-12% annual yeild, and in addition if you don't get an 8-12% pay increase each year, you are working for less money. Especially after the government takes taxes out of wages and interest. Oh did I mention by the way that the government manages to get tax revenue by allowing money to inflate, in addition to shafting bond holders? Nice.

What a con job we are living with.

[burythehatchet]

7. Sound economic policy is what turns on investors.

People are betting on the market now because they expect a Democratic majority, which historically means a better economy.

[pretzel4gore]

8. so the Plunge Protection Team is trying to drive down the dow?

watching/listening to the local biz newscasts, it sure seems they're all 'happy capitalism! ' with every gain in the dow, and a hurried 'blame the weather' when it looses steam. the biz media are true neanderthali. meaning they aint too smart (and how anyone forgets how the dow rose/fell in '03 with the likelihood of war(= a rise) or peace(=a selloff)...
> to live in this world, and to see the PEOPLE ripped off using naked cheating/cheap cons etc says if one aint rich because he/she tried to play by rules and obey laws etc then they (WE) are ARE STUPID!
----------------------
http://www.financialsense.com/fsu/editorials/mchugh/2006/0306.html
For the past several years, we have seen repeated “out of the blue” short-covering rallies just about the time a decline seems to be gaining some momentum. Our suspicion has been that the “Working Group” established by law in 1988 to buy markets should declines get out of control has become far more interventionist than was originally intended under the law. This group has since been dubbed the Plunge Protection Team. There are no minutes of meetings, no recorded phone conversations, no reports of activities, no announcements of intentions. It is a secret group including the Chairman of the Federal Reserve, the Secretary of the Treasury, the Head of the SEC, and their surrogates which include some of the large Wall Street firms. The original objective was to prevent disastrous market crashes. Lately it seems, they buy markets when they decide markets need to be bought, including equity markets. Their main resource is the money the Fed prints. The money is injected into markets via the New York Fed’s Repo desk, which easily showed up in the M-3 numbers, warning intervention was nigh.
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