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Economy crash =/= stock market crash?

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  • Type_45
    Type_45 Posts: 1,723 Forumite
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    wmb194 said:
    CNBC and Bloomberg TV are both available as part of my Virgin Media cable TV package and I think on Sky, too. You can also watch Bloomberg in the UK via its website and apps.
    We've had a clear demonstration in the last couple of pages of this thread of the gaps in understanding which occur when one gets one's economics from CNBC. 
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    adindas said:
    More than $7 trillion has been wiped out from the stock market this year By Paul R. La Monica, CNN Business May 12, 2022
    There is also another article that about $2T+ of this money is currently sitting in saving account. The rest  is rotated to other safer assets or will disappear paying the debt, interest.
    This money will be flowing back into the stock mark once the confidence in the stock market is restored. Sensible investors know keeping money in treasury Bond, Savings is a definitive money losing strategy in the long run. So the money will have to flow at some points into the stock market.
    Smart money are waiting for the signal where the market is very close to  "capitulation"

    Is this what Jim Cramer has been saying on CNBC? Is he where you derive your understanding of economics?
  • adindas
    adindas Posts: 6,856 Forumite
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    edited 3 June 2022 at 12:32PM
    Type_45 said:
    adindas said:
    More than $7 trillion has been wiped out from the stock market this year By Paul R. La Monica, CNN Business May 12, 2022
    There is also another article that about $2T+ of this money is currently sitting in saving account. The rest  is rotated to other safer assets or will disappear paying the debt, interest.
    This money will be flowing back into the stock mark once the confidence in the stock market is restored. Sensible investors know keeping money in treasury Bond, Savings is a definitive money losing strategy in the long run. So the money will have to flow at some points into the stock market.
    Smart money are waiting for the signal where the market is very close to  "capitulation"

    Is this what Jim Cramer has been saying on CNBC? Is he where you derive your understanding of economics?
    Nope for both. You should have known that if you just have half your brain works.
    Type_45 said:
    We've had a clear demonstration in the last couple of pages of this thread of the gaps in understanding which occur when one gets one's economics from CNBC.
    Where did you get the US economic and stock market news (an world) better than CNBC ? or sometimes Bloomberg or CNN
    And someone is talking a lot about the stock market, economics not even know the very basic things such as capitulation, inflation, trading, shorting the stocks. Do not even know what about CNBC Television is all about. Is it about Jim Cramer ?
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    adindas said:

    Where did you get the US economic and stock market news (an world) better than CNBC ?

    If what you're asking me is "how do you know so much", then my answer would be that I am careful who I listen to. I don't watch TV. I tune into individuals whom I trust. And I also do something else which is very uncommon thesedays: I use my own brain.
  • coastline
    coastline Posts: 1,662 Forumite
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    edited 3 June 2022 at 1:38PM
    Learning all the time that's me after decades. Where to get news and data ? Nothing wrong with twitter etc as most comes from the FED and investment banks daily reports. Anyway what I see.
    First off we've got a monthly jobs report out today and the US futures are down. All sensitive stuff at the moment. If there's a slowdown it's generally had an effect.

    United States Stock Market Index (US30) - 2022 Data - 1896-2021 Historical (tradingeconomics.com)

    FULEhVoXwAMm34- (900×500) (twimg.com)

    FULKpnQX0AYKJTr (666×450) (twimg.com)

    Analysts still see the 3-3.5% region as the top in rate rises.

    FUHRQPLXsAMO2B9 (900×521) (twimg.com)

    General opinion is a slowdown in inflation but not back to 2% .

    FUKTiRjXoAEKoTB (531×312) (twimg.com)

    Earnings are still growing although slower. P/E valuations look much better than months ago after the recent market falls.

    FULQNmRXsAEIqZq (657×403) (twimg.com)

    FTwVIiNWIAEBZ36 (781×360) (twimg.com)

    This one is from April but it shows the big picture. Valuations can vary greatly and as above the SP500 is currently on a forward P/E around 16 so it's around the middle of the channels. Question is if there's a slowdown what happens to earnings ? If they take a hit then valuations will probably adjust lower. Look in the bottom right hand corner at those margins on a 20 year high. Can only hope the economy keeps moving in the right direction. See what the markets think of the jobs report ? Good luck.

    FQ45fNEXIAQZfJY (900×545) (twimg.com)

    EDIT.. Jobs better than forecast.

    United States Non Farm Payrolls - May 2022 Data - 1939-2021 Historical - June Forecast (tradingeconomics.com)
     


  • Type_45
    Type_45 Posts: 1,723 Forumite
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    Regarding employment:

    You don't go from low unemployment to laying people off.

    First of all jobs stop getting advertised and hours get cut. And that is what we are now seeing. Layoffs will follow. 
  • adindas
    adindas Posts: 6,856 Forumite
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    edited 3 June 2022 at 2:02PM
    Type_45 said:
    adindas said:

    Where did you get the US economic and stock market news (an world) better than CNBC ?

    If what you're asking me is "how do you know so much", then my answer would be that I am careful who I listen to. I don't watch TV. I tune into individuals whom I trust. And I also do something else which is very uncommon thesedays: I use my own brain.
    Well, I never said you know so much, just the opposite.
    Did the individual you know could provide you with reliable stockmarket and economics NEWS (not gossip), better faster than CNBC Television, Bloomberg, CNN who have reporters, and connection all over the world?
    Well, if it could be when he was a prophet like saying the stock market will dive 80%.
  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    adindas said:
    Type_45 said:
    adindas said:

    Where did you get the US economic and stock market news (an world) better than CNBC ?

    If what you're asking me is "how do you know so much", then my answer would be that I am careful who I listen to. I don't watch TV. I tune into individuals whom I trust. And I also do something else which is very uncommon thesedays: I use my own brain.
    Well, I never said you know so much, just the opposite.
    Did the individual you know could provide you with reliable stockmarket and economics NEWS (not gossip), better faster than CNBC Television, Bloomberg, CNN who have reporters, and connection all over the world?
    Well, if it could be when he was a prophet like saying the stock market will dive 80%.
    Yes, I do get that news. And I share it on this forum. 


    Meanwhile, you may be interested in this from your favourite economic news outlet, CNBC:

    "Elon Musk feels ‘super bad’ about economy, needs to cut 10% of Tesla jobs"

    https://www.cnbc.com/2022/06/03/feeling-super-bad-about-economy-musk-wants-to-cut-10percent-of-tesla-jobs.html?__source=sharebar|twitter&par=sharebar
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