Oh no, Dow Jones surges over 900 points....... oh wait.

[itstony]

Seems one of our eminent righties posted about the Dow Jones falling 900 points a week or so ago claiming it was due to Joe's incompetence. I guess today's increase is all about Joe's brilliance then, right?

People who don't understand the stock market ought not post about it and try to tie it to an individual's performance.

Dow rallies 900 points as investors bet the Fed can slow inflation without causing a recession

Stocks surged as investors digested the Federal Reserve's big interest rate decision on Wednesday.

www.cnbc.com

 

[Threegoofs]

@Chainsawmassacre - I think you’re being paged.

 

[Gateman_Wen]

The Dow surged on a 1/2 point increase?

I gotta admit I did not see that coming.

 

[Liberal7360]

The Dow surged on a 1/2 point increase?

I gotta admit I did not see that coming.

I did.

But then my education and degree is in accounting/finance.

I was required to take economics courses all through school.

There are two reasons why the interest rate is being increased.

1. The economy is much better and in fact the high demand with supply chain disruptions is creating the inflation.
2. To slow down the demand for goods and services so that inflation slows down and can be brought under control.

The only reasons to keep low interest rates is during a bad economy to help kick start the economy.

When the economy regains and is much better, interest rates are increased.

The stock market is acknowledging that the fed is right and the economy is recovering.

 

[itstony]

The Dow surged on a 1/2 point increase?

I gotta admit I did not see that coming.

When I saw the news I was pretty sure the market would react positively. It shows restraint by the FR especially when they said there were no future increases coming for now. Joe is a genius. 🤣

 

[itstony]

@Chainsawmassacre - I think you’re being paged.

He won't post until the market over corrects in one day again, then we'll get the "see I told you" post.

 

[Bullseye]

Seems one of our eminent righties posted about the Dow Jones falling 900 points a week or so ago claiming it was due to Joe's incompetence. I guess today's increase is all about Joe's brilliance then, right?

People who don't understand the stock market ought not post about it and try to tie it to an individual's performance.

Dow rallies 900 points as investors bet the Fed can slow inflation without causing a recession

Stocks surged as investors digested the Federal Reserve's big interest rate decision on Wednesday.

www.cnbc.com

So, you're crowing about getting back what it posted? BFD.

 

[itstony]

So, you're crowing about getting back what it posted? BFD.

As usual, you completely miss the point.

 

[Bullseye]

As usual, you completely miss the point.

What point? Dow went up 900; it's done that before, as well as gone as much. . As if that's more than a passing market reaction.

 

[itstony]

What point? Dow went up 900; it's done that before, as well as gone as much. . As if that's more than a passing market reaction.

 

[phoenix2020]

What point? Dow went up 900; it's done that before, as well as gone as much. . As if that's more than a passing market reaction.

For someone named Bullseye, you sure miss the mark a lot.

 

[Bullseye]

For someone named Bullseye, you sure miss the mark a lot.

View attachment 67389049

So, you're all squishy about a .5% hike and you're upset I'm not jumping in the pool. Enlighten me. What's the BFD?

 

[Bullseye]

View attachment 67389048

Funny, no body wants to use their words and explain why they're so excited.

 

[gbg3]

I have a bit of money I've been waiting a while to add to the market. I did get in with 12% of my planned new investment at the end of last Friday - the market had reached my "interested" level. Now, I'm back in wait and watch mode. I'm VERY patient. If we don't experience another interesting downturn in the next few months, I'll just keep waiting. If the S&P approaches or gets to about 4000, I'll plunk the other 88% in - probably in increments, but when it tumbles those increments can get to be consecutive days, when the action is swift and intriguing.
Last Friday was fun because I was purchasing an ETF as a limit order (day only), and it executed 60 seconds before the market closed.

 

[phoenix2020]

So, you're all squishy about a .5% hike and you're upset I'm not jumping in the pool. Enlighten me. What's the BFD?

Why don't you try re-reading the first three sentences of the first post of this thread and try to comprehend the point that was being made. It's fine if you don't agree with it, but at least try to do the bare minimum and understand what the OP was talking about?

Hint: it was nothing related to how big or small a market event this was.

 

[gbg3]

The stock market is acknowledging that the fed is right and the economy is recovering.

We'll see. While the 1/2 point increase isn't receiving argument, there are sure a heck of a lot of economists feeling these increases are happening TOO late.

 

[gbg3]

When I saw the news I was pretty sure the market would react positively. It shows restraint by the FR especially when they said there were no future increases coming for now. Joe is a genius. 🤣

Huh, they're planning another 1/2 point at each of the next two meetings. What they aren't planning - is an unexpected 3/4 point in the next couple meetings. That was what the market saw as "comforting".

 

[Chainsawmassacre]

The Dow surged on a 1/2 point increase?

I gotta admit I did not see that coming.

It surged because fed predicted a soft landing with no recession. The market is like a roller coaster with investors buying or selling based on statements more than actual economic data. I do hope fed is right though.

 

[itstony]

It surged because fed predicted a soft landing with no recession. The market is like a roller coaster with investors buying or selling based on statements more than actual economic data. I do hope fed is right though.

So your position is Biden's fault when it goes down but the feds get credit when it goes up. Today the stock market is like a roller coaster, last week it was because of Biden's policies. You can't make this stuff up. 🤣 🤣

 

[Chainsawmassacre]

So your position is Biden's fault when it goes down but the feds get credit when it goes up. Today the stock market is like a roller coaster, last week it was because of Biden's policies. You can't make this stuff up. 🤣 🤣

Investors have an underlying confidence in American capitalism and when someone they deem relavant makes a positive statement on the economy they get excited and jump in with both feet. Then there's JB and his seriously flawed economic policies that have investors nervous as the proverbial long tail cat in a room full of rocking chairs. As Obama said " never underestimate Joe's ability to **** things up". Investors ascribe to this line of thinking and when someone they deem relavant makes a negative economic statement they head for the exit. JB economic policies have shaken the aforementioned foundation of investor confidence and you see the results in persistent and all too common dramatic roller coaster Dow prices.

 

[joluoto]

The stock market is not the economy.

 

[gbg3]

It surged because fed predicted a soft landing with no recession. The market is like a roller coaster with investors buying or selling based on statements more than actual economic data. I do hope fed is right though.

We'll certainly have to see if they can pull off that soft landing. The inflation issue is serious and it's not like it will be easy to successfully move rates just the right amount at the right time. Quite a few think they started too late. My guess (and the reason I've only added 12% of what I'd like to add) is that the current (especially volatile) roller coaster action is far from over.
I began buying some I Bonds, for the first time, late last year and then again in January because the dollar amount one can buy is quite limited per person per calendar year. I liked the 7+% rate last year. Then it just jumped to its highest ever 9.62% (May- October). When we bought late last year, we never would have predicted the hefty 9.62% May rate. Inflation is high!

 

[bave]

But then my education and degree is in accounting/finance.
The stock market is acknowledging that the fed is right and the economy is recovering.

That's an incredibly odd take.

It is widely viewed by almost every major economist that the FRB has been wrong about pretty much everything for the past year. Inflation was not mild. It was not transitory. Labor participation is not rebounding. etc.

The reason the market soared yesterday was because the Fed went dove, again. The 50bps was never in question, Powell however removed the consideration for faster rate increases than the current baseline, the market liked that. Powell then doubled down and slowed down the taper. Now it begins next month along with no actual sell down, but rather a run off.

So, every possible turn Powell went dove. That's his MO at this point. He always leans away from aggressive action and response and he has been wrong consistently on that topic. But hey, everyone loves cocaine, especially Mr.Market.

It surged because fed predicted a soft landing with no recession. The market is like a roller coaster with investors buying or selling based on statements more than actual economic data. I do hope fed is right though.

It surged because Powell just threw a giant bowl of coke into the room with easier monetary policy than was expected. He dialed down all the expectations while painting a rosy picture of soft landings and easing inflation that no major economist is seeing. Look at every major financial institution over the last few weeks agreeing on the fact that a soft landing is effectively impossible.

 

[Chainsawmassacre]

That's an incredibly odd take.

It is widely viewed by almost every major economist that the FRB has been wrong about pretty much everything for the past year. Inflation was not mild. It was not transitory. Labor participation is not rebounding. etc.

The reason the market soared yesterday was because the Fed went dove, again. The 50bps was never in question, Powell however removed the consideration for faster rate increases than the current baseline, the market liked that. Powell then doubled down and slowed down the taper. Now it begins next month along with no actual sell down, but rather a run off.

So, every possible turn Powell went dove. That's his MO at this point. He always leans away from aggressive action and response and he has been wrong consistently on that topic. But hey, everyone loves cocaine, especially Mr.Market.



It surged because Powell just threw a giant bowl of coke into the room with easier monetary policy than was expected. He dialed down all the expectations while painting a rosy picture of soft landings and easing inflation that no major economist is seeing. Look at every major financial institution over the last few weeks agreeing on the fact that a soft landing is effectively impossible.

And as we speak yesterday's gains are quickly evaporating.

 

[Chainsawmassacre]

Seems one of our eminent righties posted about the Dow Jones falling 900 points a week or so ago claiming it was due to Joe's incompetence. I guess today's increase is all about Joe's brilliance then, right?

People who don't understand the stock market ought not post about it and try to tie it to an individual's performance.

Dow rallies 900 points as investors bet the Fed can slow inflation without causing a recession

Stocks surged as investors digested the Federal Reserve's big interest rate decision on Wednesday.

www.cnbc.com

Unfortunately it's melting away today.