• Dow passes 21,000 after Trump speech to Congress
    38 replies, posted
[quote]The Dow Jones industrial average hit a new high Wednesday, eclipsing 21,000 points for the first time in history. The Dow spiked more than 300 points (1.5 percent) by 1 p.m. ET, peaking at 21,141 points at 12:30 p.m. The S&P 500 and Nasdaq also rose roughly 1.4 percent each. The rally came one after President Trump’s speech to Congress, in which he repeated campaign promises to cut corporate taxes and unwind Obama administration regulations without providing specifics. Republicans and some political pundits praised Trump for communicating his long-held policy platform in an optimistic way, while Democrats said the president merely repackaged the same ideas they loathe in a gentler tone with no details. Stocks have rallied consistently since Trump’s election, fueled by optimism that he would bolster business with tax reform and looser financial and environmental regulations. Trump and his aides have taken credit for the stock boom, a rare step for administrations wary of tying themselves to a potential market crash. Treasury Secretary Steven Mnuchin said last week that stock performance was “absolutely” a good report card for the administration’s economic policy. Even so, progress on Trump's and the GOP's economic priorities has been elusive. Republicans have struggled to unify behind an ObamaCare repeal and replacement plan, which has delayed work on tax reform and a potential Dodd-Frank overhaul. Trump has promised to “dismantle” Dodd-Frank, but hasn’t specified how he’d do so.[/quote] [url]http://thehill.com/policy/finance/321830-dow-passes-21000-points-after-trump-speech-to-congress[/url]
[quote]Stock market analysts say the optimism-fueled stock rally has little room to continue given the limited progress and scarce details. [/quote] aka feels before reals
[QUOTE=Dave_Parker;51895289]I made some good money on the stock market with SPY calls, so feels before reals all day erry day[/QUOTE] Guess what happens when the reals start to catch up...
I give it till the 13th ~ 15th, before we start seeing some [url=https://www.washingtonpost.com/business/economy/fight-over-debt-ceiling-could-accelerate-trumps-budget-clash-with-gop/2017/02/28/cd7f0c9e-fdc7-11e6-99b4-9e613afeb09f_story.html]serious shit[/url]. Needless to say, we are close to burning everything, just for the sake of burning it.
Trump is not responsible for the markets doing well
[QUOTE=Lambeth;51895311]Trump is not responsible for the markets doing well[/QUOTE] No, but investors feelings about him are. We'll see what happens when the realities of the Trump administration set in.
boom b___? fill in the blank! Anyways, thanks obama for lifting us out of the great recession and giving us a couple years of solid growth.
[QUOTE=Dave_Parker;51895462]I already cashed out though. Drop starts tomorrow.[/QUOTE] You got all the feels and some good reals.
one has to wonder when the bubble bursts how fucked will trump and or our economy be because this is just being fueled by massive cheap money which has to dry up at some point and trump is an idiot that can't spend 10 minutes in an intel breifing let alone the months of dealings that obama and bush both went through following the 08 crash. oh bonus points for all the people who will be absolutely fucked by fiscal conservatives who will close the taps on all social ""entitlements"" in the next budget to built giant walls.
This happens at the beginning of every presidency. Stock investors hold their breath in first few weeks to figure out what's going to happen with the the new administration. Republican presidents tend to usually bolster stock market prices in the beginning, because they're "pro-business". However, it's unfortunate that a majority of Americans tend to forget that the two worst economic downturns of the United States were results of conservative deregulation and blind faith in the free market, no matter how happy investors were in the beginning of their presidencies.
Would now be a good time then to buy gold?
[QUOTE=atva300ex;51895869]Would now be a good time then to buy gold?[/QUOTE] It's never a good time to buy gold.
Great timing! I just went all in on $AMD last week
But everyone was saying our market would crash like the pound during Brexit :thinking:
[QUOTE=-nesto-;51895893]But everyone was saying our market would crash like the pound during Brexit :thinking:[/QUOTE] It would be interesting if it didn't crash, though not super unlikely. Republican policy tends to have the slow bleed effect, it just slowly enough does damage that it's hard to notice the effects. See the slow defunding of schools, the introduction of abstinence only sex ED, and its effects on the low and middle class in red states.
[QUOTE=Amfleet;51895300]Guess what happens when the reals start to catch up...[/QUOTE] Those of us who were playing SPY calls duck out asap and laugh all the way to the bank obv. Personally I'm a long term investor in what I'd describe as pretty secure companies as most of them provide a lot of vital products/services (research into or the production of life saving medications for example) so I'm pretty confident even if the country doubles back and the market crashes I'll come out at least alright if not better in the long run. Investing, I think, is more knowing when selling out to "minimise your losses" is the wrong move than anything really. Picking good companies is also a massive thing but it's all about understanding the psychology and politics of wallstreet too.
[QUOTE=-nesto-;51895893]But everyone was saying our market would crash like the pound during Brexit :thinking:[/QUOTE] i don't actually remember this
[QUOTE=atva300ex;51895869]Would now be a good time then to buy gold?[/QUOTE] lol no. Buying gold is a fucking scam at best tbh. Why do you think people are also so keen to sell you gold on TV? There's a reason for it. It's not because they're looking out for you or your family's future either. Plus iirc I'm pretty sure there's a law that lets the government seize gold and silver assets because of the hoarding of them or something. A company grows better than the value of gold, and a company can pay dividends to you while gold cannot.
[QUOTE=F.X Clampazzo;51895946]Those of us who were playing SPY calls duck out asap and laugh all the way to the bank obv. Personally I'm a long term investor in what I'd describe as pretty secure companies as most of them provide a lot of vital products/services (research into or the production of life saving medications for example) so I'm pretty confident even if the country doubles back and the market crashes I'll come out at least alright if not better in the long run. Investing, I think, is more knowing when selling out to "minimise your losses" is the wrong move than anything really. Picking good companies is also a massive thing but it's all about understanding the psychology and politics of wallstreet too.[/QUOTE] You're certainly correct. What I'm getting at is that most investors have a very short term mindset, and when he begins robbing people of spending power to fund his brainless projects, those who aren't reading the tea leaves will fall hard with the market. Or he could start a trade war with a major partner, and then all comes tumbling down much faster.
[QUOTE=Zukriuchen;51895965]i don't actually remember this[/QUOTE] I'm sure someone said it but what was really said by anyone who wasn't sensationalising it is that the markets would take a dip because of Brexit. And they did. I know people who lost over 20% of their portfolio's value due to Brexit market scare. It's came back since because the market scare subsided for a while. But the markets did actually drop because of Brexit, maybe not universally, but it did drop. [editline]1st March 2017[/editline] [QUOTE=Amfleet;51895973]You're certainly correct. What I'm getting at is that most investors have a very short term mindset, and when he begins robbing people of spending power to fund his brainless projects, those who aren't reading the tea leaves will fall hard with the market. Or he could start a trade war with a major partner, and then all comes tumbling down much faster.[/QUOTE] Oh yeah, people who aren't keeping up are going to get absolutely fucked. People's retirements will get boned, shit will be bad. But that's a universal constant for all economic crashes or tumbles, anyone who isn't actively in the tea leaves is going to get bit hard. But if you can't afford to loose all the money you've invested you either need to invest less or be more informed on the market to minimise risk. A traditional savings account with the best interest you can get along with the more secure savings options is the best thing for a lot of people tbh. Trying to half play the investment game for retirement is always very high risk unless you're able to afford to pay someone to manage your assets for you. Basically you either gotta be rich already or you gotta be smart and have time to dedicate to it.
[QUOTE=atva300ex;51895869]Would now be a good time then to buy gold?[/QUOTE] No. Gold is useless, except for niche applications (electronics for example). You can't eat it, you can't kill things with it, you can't build a house or other stuff out of it, you can't burn it for warmth or make clothes out of it, you can't make tools out of it, you can't use it as medicine if you're sick, etc. Buy things you can actually use and that you will actually need.
Optimism is a good driver for the economy, so whether Trump's ideas are good or not, as long as people are optimistic, chances are we'll see growth. And then we'll probably see a crash or whatever, but yeah, my concern with Trump is more along the lines of poor people getting shat on, and Trump having a negative impact on the world at large. Rich people in the US have nothing to fear as far as I'm concerned.
[QUOTE=Zukriuchen;51895965]i don't actually remember this[/QUOTE] [url]https://www.nytimes.com/2016/11/01/business/dealbook/what-happens-to-the-markets-if-donald-trump-wins.html[/url] [url]http://fortune.com/2016/11/08/donald-trump-stocks-crash/[/url] [url]http://www.politico.com/story/2016/10/donald-trump-wall-street-effect-markets-230164[/url] [url]http://www.cnbc.com/2016/11/02/this-is-what-could-happen-to-the-stock-market-if-donald-trump-wins.html[/url] [url]http://www.businessinsider.com/european-stocks-crash-donald-trump-wins-presidency-2016-11[/url]
[QUOTE=Lambeth;51895311]Trump is not responsible for the markets doing well[/QUOTE] Having read through the shareholder meeting minutes of at least six large-cap companies at work today, I respectfully disagree. The private sector can see that Republicans have a clear path to implement most if not all of their planned economic policies through Trump, and they are banking on lower taxes, greater investment in infrastructure, and deregulation of the financial industry. They are communicating this certainty to their shareholders, and the shareholders are responding by buying more stock in anticipation of a real boom--not knowing that the effects are far from immediate, and the policy hasn't even been drafted yet. That said, the market is hyper-inflated right now and is long overdue for a correction. Indicies are going to start falling rapidly as Trump withdraws from the grandstand and the long, silent work of policy begins to unsettle the speculators. I don't dabble in options, but it's obvious this is a good time to sell out. The market may very well dip back below 20k in a few weeks. [editline]1st March 2017[/editline] [QUOTE=atva300ex;51895869]Would now be a good time then to buy gold?[/QUOTE] Don't buy the physical object, but it might be the time to consider some of its derivatives. It's too late for options, but a no-leverage ETF could be a good short-term choice until things recover. Just remember that you are a speculator when doing this, and thus you are entitled to a 100% loss at all times.
[QUOTE=thelurker1234;51895338] Anyways, thanks obama for lifting us out of the great recession and giving us a couple years of solid growth.[/QUOTE] What?
[QUOTE=Govna;51896117]No. Gold is useless, except for niche applications (electronics for example). You can't eat it, you can't kill things with it, you can't build a house or other stuff out of it, you can't burn it for warmth or make clothes out of it, you can't make tools out of it, you can't use it as medicine if you're sick, etc. Buy things you can actually use and that you will actually need.[/QUOTE] People don't buy gold because it's useful.
[QUOTE=Govna;51896117]No. Gold is useless, except for niche applications (electronics for example). You can't eat it, you can't kill things with it, you can't build a house or other stuff out of it, you can't burn it for warmth or make clothes out of it, you can't make tools out of it, you can't use it as medicine if you're sick, etc. Buy things you can actually use and that you will actually need.[/QUOTE] The basic idea of buying gold is that you can sell it onwards when needed. True, you can't actually use it but it's as good as money in a lot of cases. Even in a situation of complete breakdown of society, you can bet that people outside your country will still be willing to buy that gold for a pretty price.
[QUOTE=JohanGS;51896398]People don't buy gold because it's useful.[/QUOTE] Yeah they buy it because they're idiots. [editline]2nd March 2017[/editline] [QUOTE=Mmrnmhrm;51896498]The basic idea of buying gold is that you can sell it onwards when needed. True, you can't actually use it but it's as good as money in a lot of cases. Even in a situation of complete breakdown of society, you can bet that people outside your country will still be willing to buy that gold for a pretty price.[/QUOTE] Assuming the US doesn't at some point sieze your precious metal assets like they have laws both to do and the historical precedent of doing. But hey, illegal black market trade of gold or black market trade of anything else is fair game I suppose.
[QUOTE=Revelificent;51896362]What?[/QUOTE] Since we're measuring success by the DJI obama raised it by 8k 👌 [sp]dont take this seriously[/sp] to say that trump is responsible for the current healthy state of the economy is spurious. It had long flirted with the 20k mark, and around elections people tend to be cautious until it's over. And for growing the economy and taking us out of the recession his policies didn't do too bad. It'll be interesting to see what the cheetoh does. [QUOTE=JohanGS;51896398]People don't buy gold because it's useful.[/QUOTE] To any bystanders, please carefully do your research before you buy gold lol. because if you do you might find out "oh. this isn't a great idea is it."
Once Trump enacts his own economic plans and rules then we can attribute any stock market changes to him. Anything before that I won't give him credit, just like how he tried to take credit when it first went to 20,000 after doing nothing.
Sorry, you need to Log In to post a reply to this thread.