Dow

Generali

The ever wonderful Lex in the FT:

http://www.ft.com/cms/s/2/d523a49c-5ffe-11de-a09b-00144feabdc0.html

Those short of confidence need to be constantly told they’re doing great. It seems that equity and commodity markets since March shared a similarly nervous disposition. While prices were going up, investors strutted. Yes the economic news is horrible, but it is less horrendous than last month! As with all fragile types, however, barely a scratch has sent them wailing like children...

...One mistake, however, would be to believe that a correction in commodity prices and interest rates are entirely reason to celebrate. They may indeed offer short term relief, having threatened to kill off the recovery before it began. But if the trend catches hold it could presage a nasty economic future: perhaps a Japanese-style period of falling prices and depressed demand. That scenario remains distinctly possible. Consumers remain overleveraged and the houses they live in are still falling in value. Companies around the world will benefit again this quarter from cost control. But profits everywhere are still down on last year and cuts cannot be found forever. US profit margins, for example, are around their 50-year average. Investors are increasingly nervous. They should never have been anything but.

Here's an interesting graphic:

StevieJ

Generali wrote: »

It's looking pretty certain that markets are pricing in no more really bad news although not outright recovery.

It is not as if they are whoop, whoop, whooping up to their highs.

The Dow is still down 40% and the Ftse down 33% . The Dow is still 4% lower than it was in 1998 and the Ftse is lower than it was at the beginning of 1997. :eek:

bubblesmoney

StevieJ wrote: »

It is not as if they are whoop, whoop, whooping up to their highs.

The Dow is still down 40% and the Ftse down 33% . The Dow is still 4% lower than it was in 1998 and the Ftse is lower than it was at the beginning of 1997. :eek:

The top-performing letter that predicted the Crash of 2008 now predicts a confiscatory Franklin D. Roosevelt-style "bank holiday." But it's surprisingly sanguine about stocks -- in the (very) short term. from the wallstreet journal related marketwatch website

mewbie_2

Is it the right sort of day to bump this thread?

Graham_Devon

mewbie wrote: »

Is it the right sort of day to bump this thread?

Still, it's higher than it was in 1768. That's good news.

mewbie_2

Graham_Devon wrote: »

Still, it's higher than it was in 1768. That's good news.

I bet you don't have the graphs capable of proving that. I mean proving it, as in being accepted by everybody as fact rather than a series of running arguments.

Graham_Devon

mewbie wrote: »

I bet you don't have the graphs capable of proving that. I mean proving it, as in being accepted by everybody as fact rather than a series of running arguments.

I believe such a graph does not exist, as it if did, it would be downgraded to a chart.

mewbie_2

Graham_Devon wrote: »

I believe such a graph does not exist, as it if did, it would be downgraded to a chart.

Lol. The Quest for the Holy Grail begins here. Sir Graham, will you ride with me to Camelot?

Graham_Devon

mewbie wrote: »

Lol. The Quest for the Holy Grail begins here. Sir Graham, will you ride with me to Camelot?

Well, depends what you mean by "ride" and "camelot" _pale_

mewbie_2

Graham_Devon wrote: »

Well, depends what you mean by "ride" and "camelot" _pale_

I was referring to holding a pair of coconuts and leading you to great adventures.