Dow Jones Breaks 16000

2010

The Dow has broken 16000 and is at record levels closely followed by the S&P 500 heading above 1800.
These markets are being driven by the FED`s printing of billions of dollars each month to buy worthless assets.
A correction must surely be just around the corner.

talexuser

You would think so. Do the markets believe the upturn in the States is genuine? Or is Wall St going to make hay while the printing presses shine and get out just before everyone else is left with the pieces?
Metaphorically speaking

marathonic

2010 wrote: »

A correction must surely be just around the corner.

I've been thinking the same this past year - a period during which it has rose by 27%.

It reminds me of a quote, "Markets can remain irrational a lot longer than you and I can remain solvent."

srcandas

I know the "we're doomed Captain" brigade are growing in numbers but do consider that the Dow is up 63.82% in 10 years. Hardly world record stuff. And if you look at a graph nothing abnormal is happening.

16000 is just a number like any other. Incoming, incoming

2010

Since 9th March 2009 the Dow has gained 142% to take it above the 16000.
27% in the last twelve months not on the strength of the economy but the printing of money.
The warning light is on when a company like Twitter is "valued" at 24 billion dollars and has never made any profit.

A correction is due all that`s stopping it is the printing of money.
The first sign of "tapering" or the realisation that it`s coming, will send the markets into tail spin.

marathonic

2010 wrote: »

A correction is due all that`s stopping it is the printing of money.
The first sign of "tapering" or the realisation that it`s coming, will send the markets into tail spin.

On the other hand, the markets may already have priced in this expectation of tapering. Perhaps the DOW would be at 20,000 if there was no expectation of an end to the money printing.

2010

marathonic wrote: »

On the other hand, the markets may already have priced in this expectation of tapering

Watch this space.

DiggerUK

2010 wrote: »

.......A correction must surely be just around the corner.

Why.....when they have boomed the markets before, it took a few years before they had to stimulate again.
Could be a few corners to turn before the next black swan.

Relax for now.
..._

srcandas

2010 wrote: »

Watch this space.

I've only got 20 years left so please make it happen quickly

2010 wrote: »

Since 9th March 2009 the Dow has gained 142% to take it above the 16000.

So in over 4 years taking the worst possible time gap you can find 142%. Why did you not pick October 2007 to today??? Could it be 13% wouldn't prove your point?

Reminds me of the IFA on here who left his client out of the market to wait for a correction. It was October 2012 I think :cool:

Glen_Clark

Thats not a big rise when you consider English land prices (not values) have tripled since QE began. I don't see it as a rise in the value of assets, more a fall in the value of cash - which is likely to be permanent.

marathonic

Glen_Clark wrote: »

I don't see it as a rise in the value of assets, more a fall in the value of cash - which is likely to be permanent.

I totally agree with this. All assets appear overvalued at the moment but that's when you look at their value in relation to the pound but, with all the money printing, a pound isn't worth what it once was.

The exception to the rule appears to be gold. I've been watching it's price over the last few months and it doesn't appear to have found a bottom yet. I'd be tempted to buy a few Britannia coins if the fall continues.