Dow

StevieJ

What do I think? steer clear of US financials

mewbie_2

Here's a bit more bear stuff.

Toyota pulling plug on US factory. If they can't make a buck then who can?

http://news.bbc.co.uk/1/hi/business/8225914.stm

tricki1

StevieJ wrote: »

What do I think? steer clear of US financials

Last time that particular bubble popped we got our feet wet over here too, lets hope it isn't more of the same. Probably have different effect if burst what with the bailouts; and not effect here so much unless some of the CDS toxic waste is still circulating; but if it is a bubble of worthless stocks and it carrys on growing what sort of damage could it unleash later?

Another article here

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090827&id=10343112

WASHINGTON (AP) - Investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions, even though analysts say their prices are almost certain to go to zero.

Since they are TBTF and backed by the US are the stocks worthless? or are investors hoping for the toxic stuff to be cleared out and business as normal and they have got stocks for virtually nothing? Are investors not counting the fact that the amount of money lost is so large it may never be paid out, except by a default or inflation?

I think ill stay away from the whole continent StevieJ - the whole situation there is just too surreal :rolleyes:

sabretoothtigger

The difference between last october and now is the currency most likely and the two index should not match in numbers till the currency worth is also the same

If we convert the $ DOW to £ like the FTSE is valued we might get more consistency over the last year


If the currency suffers the stocks will appear to out perform and vice versa. This is why we wont reach new lows imo

StevieJ

sabretoothtigger wrote: »

The difference between last october and now is the currency most likely and the two index should not match in numbers till the currency worth is also the same

If we convert the $ DOW to £ like the FTSE is valued we might get more consistency over the last year


If the currency suffers the stocks will appear to out perform and vice versa. This is why we wont reach new lows imo

True, the -12% Dow return has beaten the -1% Ftse return in Stg terms.

StevieJ

tricki1 wrote: »

I think ill stay away from the whole continent StevieJ - the whole situation there is just too surreal :rolleyes:

I have a toe in there by means of a L&G tracker.

mewbie_2

Fasten your seat belt Dorothy...

sabretoothtigger

:laugh:

Underlying trend is currency weakness and every other asset to rise nominally but right now dollar is stronger

StevieJ

Seems like the markets are still nudging upwards, soon be this threads first birthday :beer:

sabretoothtigger

The DOW at 10k in 2009 is worth less then the DOW at 8k in 2003.

Dollars




Selling DOW to buy goods/services with USA trading partners buys 25% then 10 years ago







Selling DOW to buy gold obviously buys consistently less




http://www.zerohedge.com/article/dow-10000-oh-wait-make-7537