Stock Markets Current News III (Take Two)

TheAntiDoomer · **Joined:** Wed Jun 18, 2008 12:00 am **Posts:** 575

^That would put the market at 2.5 "Kunstlers". One Kunstler = Dow 4,000.

biofuel13 · **Posted:** Wed Oct 14, 2009 9:51 am

Let's keep in mind that the dollar continues its ride into the toilet. So sure stocks are up, but they are priced in increasingly worthless paper. I wouldn't be surprised to see DOW 15K or 20K in the near future(6-8 months).

ColossalContrarian · **Joined:** Tue Jun 20, 2006 12:00 am **Posts:** 892

biofuel13 wrote:

Let's keep in mind that the dollar continues its ride into the toilet. So sure stocks are up, but they are priced in increasingly worthless paper. I wouldn't be surprised to see DOW 15K or 20K in the near future(6-8 months).

and just imagine where gold and oil will be!

OilFinder2 · **Posted:** Wed Oct 14, 2009 5:24 pm

JJ · **Joined:** Tue Aug 07, 2007 12:00 am **Posts:** 1168

so is the dow going up because the dollar is worth less? i think I saw someone said they wouldn't be surprised if it went to 20,000....

Roy · **Posted:** Thu Oct 15, 2009 10:15 am

Quote:

Dow 10K: Celebrating 10 Years of 0% Return
Published: Wednesday, 14 Oct 2009 | 10:19 PM ET

Michael Yoshikami
President & Chief Investment Strategist
YCMNET Advisors

Congratulations investors. The Dow has hit 10,000 on October 14th, 2009. You now have made officially 0 percent return if you invested in this index when the Dow first hit this magical level in 1999.

Time to celebrate for sure!

http://www.cnbc.com/id/33320014

Using the Federal Reserve's own inflation calculator, $10000 in 1999 is now equivalent to.... drum rolll...

$12797.

http://www.minneapolisfed.org/index.cfm

Buy and hold! Buy and hold!

Minvaren · **Posted:** Fri Oct 23, 2009 12:27 pm

Link

Quote:

Still, the Dow Jones industrial average slumped more than 1% today before recovering slightly. The Dow is crisscrossing back and forth across the 10,000 benchmark and threatening to suffer its first down week since the beginning of the month.

October jitters or the next leg down?

Roy · **Posted:** Fri Oct 23, 2009 1:26 pm

The DJIA stopped making sense some time ago. It's manipulated. You have your Presidential Working Group on Markets, you have flash trading, front running, TARP funds, banks with trading desks, and stocks P/E ratios that are out of this world.

It used to measure the economic activity. Now it is a farce, IMO. Not saying people can't make money day trading.

The market moves are volatile and not based on economic fundamentals any more. Lots of people who know a lot more about it than me have been saying this for quite a while. Several of them in the friendly confines of PO.com too.

I cashed out in 06 and never looked back, other than with the interest of someone passing up a car wreck, or maybe a train wreck. Classic rubbernecking.

Other investments have given a much better rate of return than the S&P, DJIA, and NASDAQ in the last 5 years.

I mean for people like me who aren't interested in becoming a day trader or who can't afford to risk their hard earned cash in such a speculative and high risk scheme.

eXpat · **Joined:** Thu Jun 08, 2006 12:00 am **Posts:** 1677

dinopello · **Posted:** Fri Oct 30, 2009 10:10 am

Damn, I should have SOLD ! :evil:

No, wait - it's a buying opportunity ! :lol:

rangerone314 · **Posted:** Fri Oct 30, 2009 10:14 am

Roy wrote:

Quote:

Dow 10K: Celebrating 10 Years of 0% Return
Published: Wednesday, 14 Oct 2009 | 10:19 PM ET

Michael Yoshikami
President & Chief Investment Strategist
YCMNET Advisors

Congratulations investors. The Dow has hit 10,000 on October 14th, 2009. You now have made officially 0 percent return if you invested in this index when the Dow first hit this magical level in 1999.

Time to celebrate for sure!

http://www.cnbc.com/id/33320014

Using the Federal Reserve's own inflation calculator, $10000 in 1999 is now equivalent to.... drum rolll...

$12797.

http://www.minneapolisfed.org/index.cfm

Buy and hold! Buy and hold!

So I guess the question would be, after inflation adjusting the DOW, what year would it first have hit what it is now?

I come up with June 1997, when the DOW had hit 7782. To keep up with inflation since 1997, the DOW would have to be at 10337. So BUY AND HOLD since 1997 nets you LESS than 0% adjusted for inflation

Personally, I don't think interest income or capital gains should be taxed unless they reduce the gains by the amount they increased due to inflation. So if you have $10,000 in a bank that earns 2% interest and inflation is 3%, you've lost money, despite the IRS saying you've earned $200 in income.

rangerone314 · **Posted:** Fri Oct 30, 2009 10:38 am

Here is another fun statistic. Using the Fed inflation figures, $10,000 in 1966 is worth $65,802 now.

In Jan 1966 the DOW was 983. 983 times 6.5802 = a 6,468 DOW.

The difference between 10,000 DOW and 6,468 is 1% a year. Essentially if you invested in the DOW in 1966, 43 years later you have netted 1% after inflation (per year)

Of course if you had to pay taxes on those gains...

smallpoxgirl · **Joined:** Mon Nov 08, 2004 1:00 am **Posts:** 7742

rangerone314 wrote:

The difference between 10,000 DOW and 6,468 is 1% a year. Essentially if you invested in the DOW in 1966, 43 years later you have netted 1% after inflation.

Unless you sold out back in March. In that case you would have netted zero return for your 43 years of investment.

rangerone314 · **Posted:** Fri Oct 30, 2009 12:34 pm

smallpoxgirl wrote:

rangerone314 wrote:

The difference between 10,000 DOW and 6,468 is 1% a year. Essentially if you invested in the DOW in 1966, 43 years later you have netted 1% after inflation.

Unless you sold out back in March. In that case you would have netted zero return for your 43 years of investment.

Sorry my bad, I meant to put 1% after inflation PER year. It does compound a bit over 43 years, but it still sucks.

Although that 1% is using government inflation figures. I being to suspect that long term, the DOW simply tracks inflation.

basil_hayden · **Posted:** Fri Oct 30, 2009 1:12 pm

Stocks Get Pummelled

kekeke

Graphs on the right sidebar make it look like a monthly wave that's sinking.

Stock Markets Current News III (Take Two)

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