Unchained Preppers
General Category => News & Politics => Topic started by: Nemo on December 13, 2023, 04:11:45 PM
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today of closing OVER 37,000. Up 512 today.
Never been this high before.
What in all hail is going on in the markets.
The higher you go, the farther you fall.
Nemo
https://www.marketwatch.com/investing/index/djia (https://www.marketwatch.com/investing/index/djia)
DJIA Dow Jones Global
Dow Jones Industrial Average
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Closed
Last Updated: Dec 13, 2023 at 4:02 p.m. EST
37,090.83
512.89 1.40%
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Well, Nemo... when checked early at opening, gains in my "portfolio" were anemic. Only now after closing does it look like YUGE later day "rally"
Indeed, what in the wide, wide world of sports is a go'n on here?
Guestimations produces two items (disclaimer: my past performance not only doesn't guarantee future results but should probably be viewed as a stern warning)
1) limited places/categories to invest in means the market is still the preferred choice for hedging against inflation. Let's not kid ourselves, productivity gains are not a reflection of stock prices. I think they are a much better measure of inflation, generally.
2) investors now believe (erroneously in my view) that the dread "Recession" will not be severe and that Interest Rates will either stay where they are or go lower again (it is, after all, an election year). A clue for me was Deere... those big industrial ag machines are spendy and Deer's share price was up today over 4% - in _one_ day!
On another note and interestingly, I see credit card offerings for people (with good credit) at 0% interest for _15 months_!!! So what's to stop me from opening an account there, maxing out my limit with precious metals which I hold for the year to see what happens? I think this would fall und "leveraged" investing but... a new style for me on the road to rack and ruin?
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In part this is why the DJIA is so high and surpassed the January 2022 high,
* As widely expected, the Federal Reserve held the central bank's influential fed funds rate steady on Wednesday.
* The rate is currently at a 22-year high, where it's been since July, putting upward pressure on all kinds of loans including credit cards, car loans, and mortgages.
* Economic projections showed that Fed officials anticipate planning to cut the fed funds rate by 0.75 percentage point next year, compared to the 1.25-percentage-point drop that markets expect. - MSN (https://www.msn.com/en-us/money/markets/fed-keeps-interest-rate-unchanged-at-22-year-high-but-signals-cuts-next-year/ar-AA1lsvvG)