Haim/all re >>I still do not get the logic of the recent rallies<<...
BWDIK in advance:
You have to have come to the conclusion by now that logic has nothing to do with anything... I set about my journey to "really understand" a couple years ago and am of course frustrated. To keep the market up, you want to avoid burning the young novice investor in particular - they must be rewarded in particular as they must keep piling money in for the retiring(/smarter?) generation to take it out. The less "how the market works" books they read, the easier it is to avoid the analysis paralysis of us "educated" investors ;-)
I've also come to the conclusion that our Indexes are our political symbol of health and WILL be kept healthy. Any significant downward momentum (other than for the appearance of a temporarily ethical system), will be meet with a stock's removal from the index, or action by the Plunge Protection Team.
Recently on the huge moves from 6000 to 9000, we've had CNN, CNN/FN, CNBC, MSNBC, Bloomberg Business News etc and WWW.ThisAndThat to literally PUSH stock momentum to unmeasurable levels of valuation. History has shown it can be easily done. I don't think the gov't would allow the media to use their brainwashing powers to take it down - as poverty is NOT in the public interest. Consider however, if all the stock owning media institutions that used their power to hype their holdings up, decided it was time to all be short. Now that could generate a fear I never want to know.
Just some observations common to many here I'm sure but...WDIK?
regards to all,
Tom |
