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Stock Market 2020

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The only similar parabolic NASDAQ graph shape to what I'm seeing now was in 1999 when lots of new investors were at it. It's all very strange anyway.
 
I know of people who remortgaged their house to buy more and more tech stocks on the way up in 99, then BANG!! They were in Ireland as well so the house was suddenly worth £4.50 as nobody had a job.
 
^^^ I'm guessing lots are buying using a margin account ATM.... especially in the US.

Social media is helping fuel the frenzy too.

Nothing to see here !!
 
Bloomberg:
"We’re not even thinking about thinking about raising rates,"
“We are strongly committed to using our tools to do whatever we can for as long as it takes.”
"The Federal Open Market Committee earlier said it would increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities “at least at the current pace” to sustain smooth market functioning.
A related statement from the New York Fed specified that the pace of the balance-sheet increase would be maintained at about $80 billion a month for purchases of Treasuries and about $40 billion of mortgage-backed securities."

So if I am understanding that correctly, a third of the spend is going on propping up property lending...? Haven't bothered to look but wonder where the credit rating agencies are now? :confused:

I am thinking Zimbabwe...

DJ down 1%...
 
I think we've got a volatile few years ahead...

So many unintended consequences to all this intervention that'll take years to surface
 
robs said:
Bloomberg:
"We’re not even thinking about thinking about raising rates,"
“We are strongly committed to using our tools to do whatever we can for as long as it takes.”
"The Federal Open Market Committee earlier said it would increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities “at least at the current pace” to sustain smooth market functioning.
A related statement from the New York Fed specified that the pace of the balance-sheet increase would be maintained at about $80 billion a month for purchases of Treasuries and about $40 billion of mortgage-backed securities."

So if I am understanding that correctly, a third of the spend is going on propping up property lending...? Haven't bothered to look but wonder where the credit rating agencies are now? :confused:

I am thinking Zimbabwe...

DJ down 1%...
Click to expand...

Yes - in the US of A we believe in capitalism, but, by God we can't allow price discovery, because, well, that would be a calamity.
 
Ponty said:
I know of people who remortgaged their house to buy more and more tech stocks on the way up in 99, then BANG!! They were in Ireland as well so the house was suddenly worth £4.50 as nobody had a job.
Click to expand...

A colleague once told me of a friend of his who worked at ARM holdings back during the tech bubble who had shares in the company worth hundreds of thousands of pounds from the company SAYE scheme. When the shares matured, he sold them all and bought a selection of tech company shares.

The tech bubble then burst and with it the value of all of his newly purchased shares. He then received a six figure capital gains tax bill for the sale of the ARM Holdings shares. But of course, the tech shares he now owned were worthless.

I think it bankrupted the guy.
 
andyoz said:
Bear market rally...very dangerous
Click to expand...
For a moment I read that as Beer Market Rally - now that would be dangerous as I had visions of multitudes of private investors stuck at home, hitting the beer and going on mad stock buying sprees.
 
One lady on the Robinhood.com trading platform chat room asked that if she bought shares and the value went down, could she just return them for a refund (like you return a dress to a shop unworn)

Here's the surge in trading volume that's been typical of many stocks . This one's a US airline ETF who's trading volumes went from 1 million a day to 20 million a day the last week. Powell's comments about 'unlimited' support has created a monster here in the retail investors....

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Here we go...maybe...
FTSE down 4% at the close and DJ down >5% now.
Tomorrow might be interesting.
 
robs said:
Here we go maybe...
FTSE down 4% at the close and DJ down >5% now.
Tomorrow might be interesting.
Click to expand...

There are some important end of quarter dates to come yet too...wait for the Monday after the third Friday of the final quarter month...maybe investors aren't as certain about their positions as they first thought. Maybe they are actually researching valuations and realise the Fed can't prop this forever...

Meanwhile the Institutional investors would have been shorting away to hedge against this - they win either way and the retail ones don't know what hit 'em...
 
"The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021."

POTUS tweet a few hrs ago.....good, everything's OK then, he confirms it.
 
robs said:
"The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021."

POTUS tweet a few hrs ago.....good, everything's OK then, he confirms it.
Click to expand...

Dow only fell 800 points since he said that so he can predict the future!
 
Wobble! We sold stuff on Monday / Tuesday at a few % off peak so circa 50% invested overall. Thought that was a good hedge position as we’ve seen the upticks can be as fast as the downturns, we’ll see! Kept Fundsmith / Lindsell Train GE, they are long term holds.
 
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