General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow is the stock market up almost 400 points?
Yesterday, it sank like a rock after news of the warrant executed on Cohen came out. Now it is gaining strength.
Similar things happened over the last week or two following the tariff news.
Am I the only one who things this market is rigged? I don't know what is propping it up but the rollercoaster ride makes no sense.
HAB911
(8,932 posts)China's Xi announces plans to 'open' China, including lowering tariffs on imported autos
highplainsdem
(49,091 posts)ooky
(8,933 posts)Perhaps the "market" doesn't know.
MineralMan
(146,345 posts)It's impossible, really, to predict its reaction to any particular piece of news. Forces are at work that are not apparent at all times.
Scruffy1
(3,257 posts)Having spent a little bit of time in the securities business I know how haerd it is for some people to believe the market is not rational. No one I ever worked with had ever made or knew anyone who made money by technical analysis, but you still see tons of drivel about it. I think currently that threr is just other place to put the money because interst rates are very low and money can't sit idle. JP Morgan said it best:"Stocks go up and stocks go down." I also think some of the big players like Mercer can manipulate the market somewhat, but you'll never find out what they are really doing. The main elements are fear and greed. Sometimes fear wins, sometimes greed.
ProfessorGAC
(65,337 posts). . .400 points is only a little more than 1.5%. That's not really that much volatility.
I'm not surprised at all. It goes down, then different investors see it as an opportunity to buy in and it rebounds a bit.
No really logic or reason behind each point of movement. Some rebounds might be more predictable than others, but there certainly are no set of logical rules that can be applied.
kentuck
(111,111 posts)..and spending big bucks on bombs and such?
DetlefK
(16,423 posts)Two emotions govern it: greed for more money and fear of losing money.
If the stock-market is up, then it's because it dropped recently and people figured now is a good time to buy.
Exotica
(1,461 posts)Sanity Claws
(21,863 posts)Something to think about.
ck4829
(35,096 posts)It doesn't measure 'real' events, it's not a measurement of real things. It's not like if you throw a rock over a ledge, it will fall down and hit the ground because physics. The stock market is the complete opposite of this. It is under the full sway of imperfect and incomplete information, human perceptions, human anxieties, and even lies.
One could indeed say the market is 'rigged', but it's much deeper than that. The Dow is really not a reflection of the economy in the present or the future and it's not a reflection of the economy in general, how right something is. The problem is confirmation bias, the sooner we reject it as some sort of oracle, the better.
You might be interested in these pages that my allies and I are working outside of DU:
http://rw-infopedia.pbworks.com/w/page/117407481/Oracle%20of%20the%20Dow
https://twitter.com/hashtag/DowMeansNothing?src=hash
Sanity Claws
(21,863 posts)I don't have time to look at the pages now but will this evening.
GusBob
(7,286 posts)For the life of me, dark pools sound as crooked as all get out
Hoyt
(54,770 posts)or what stupid junk trump will say?
Hamlette
(15,412 posts)Stocks went up under Clinton, even when he was impeached. (They went down in anticipation of Starr's report but had regained the loss before the House voted to impeach.)
Ilsa
(61,710 posts)YessirAtsaFact
(2,064 posts)So there is no real world reason for the market to drop yesterday, other than the news about search warrants.
And theres no real world reason for it to be up today, other than the lack of catastrophic news.
Basically, the market always overreacts to news, good or bad.
mythology
(9,527 posts)The relative economic numbers are good. Employment, corporate profits, still low interest rates.
DemocratSinceBirth
(99,719 posts)-attributed to John Maynard Keynes
Sanity Claws
(21,863 posts)I never heard that one before. Now I'll never forget it.
DBoon
(22,415 posts)"In the long run we will all be dead"
Sanity Claws
(21,863 posts)oberliner
(58,724 posts)GeorgeGist
(25,326 posts)DBoon
(22,415 posts)A classic book of investment advice based on your very statement
NCTraveler
(30,481 posts)NRaleighLiberal
(60,031 posts)It just does what it does.
I do think that if anyone really looked, Trump is manipulating the markets with his tweets.
Le Gaucher
(1,547 posts)cilla4progress
(24,791 posts)For this?
Brother Buzz
(36,490 posts)nolabels
(13,133 posts)Mostly because they are interconnected in many places.
They also hooked up with the wrong guy that pulling on the wrong card also but what are they going to do anyway
ooky
(8,933 posts)Since the first big fall over 2 months ago its been locked in this pattern.
unblock
(52,445 posts)Donnie wants a p.r. victory. He's too stupid to know the difference between that and an economic victory, and too sociopathic to care.
They know this because Donnie is the most obvious and terrible negotiator you could imagine. He puts his emotions and motivations right on the table. No poker face at all and easily manipulated.
So China will make a few token concessions that will have little impact in exchange for American concessions worth 3 times as much but Donnie won't ever mention those.
The market is up because xi played the first part of this plan. The market will tank when Donnie closes the deal with the American concessions.
Loge23
(3,922 posts)If you have holdings in the market and are getting tired of the volatility, then it may be time to move into cash.
Three (3) year rates are close to 3% now and will probably rise in the coming months.
It all comes down to knowing what stocks you have and understanding their business and financials.
Another big consideration is timing and where you are in life now.
It could be time to at least trim your market holdings to free up some cash and reduce, somewhat, your anxiety.
One thing is pretty much assured at this point: we can expect significant volatility as long as we have a lunatic in the WH.
moondust
(20,019 posts)C_U_L8R
(45,033 posts)IronLionZion
(45,615 posts)The psychology driving the ups and downs is completely insane and accelerated by algorithms written to predict the ups and downs. He says stuff to dip the markets, and his buddies buy low. They of course sell right before he publicly releases his stupid ideas to the rest of us. The people benefiting from this are much wealthier and the people being screwed by this are much older and less wealthy.
Retirees would do well to seek less risky investments until Trump is thrown out.