07-23-2009, 04:04 PM
Vllad Wrote:I don't understand how the stock market is any indication of economic recovery. The stock market is where people buy things with the hope that in the future they will increase in value. When stocks are really cheap you having nothing to lose so you can hang on to risk for much greater periods of time.
Good Dow could also mean we are in the middle of the disaster.
I just have a hard time connecting the stock markets to economies. They sometimes connect but sometimes they don't.
Vllad
When you buy a stock, you're essentially buying the future earning potential of the underlining company. Stock markets' use as a leading indicator is only as good as the collective wisdom of the market participants.
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison