Dow Approaches 30,0000 points: What’s the point?

[errolanderson]

The U.S. / global recession deepens, yet the Dow Jones is about to surpass a historic, monumental level. What’s the point of a stock market so intensely manipulated and not remotely tied to economic reality? Valuations have been grossly over-inflated now for years and the stretch continues with stock markets totally unable to stand-on-their-own. Welcome zombie companies that shouldn’t exist . . . .

When the rug gets pulled on valuations, who takes the fall?

Let’s try to keep politics to a minimum. Outgoing Mr. T and incoming Mr. B are not key to this rally (IMO). Central banks are the root. But we will all pay in the form of a lost generation (IMO).

[LQQKY]

What is lost generation?

[farmaholic]

The financial destitute?
Zero growth.

[jazz]

Who is the average stockholder errol? Does mom and pop hold a good chunk of the index or someone else? People looking to just survive 6 months dont seem to be likely buyers of shares. And the average household income after taxes leaves little left to invest.

So who is in there? I suspect buy backs are the real culprit and a good chunk of stimulus has found its way back into that cesspool like every crisis.

[Oliver88]

Will the Dow explode to 32,000+ if several vaccines go into production and distribution?

[biglentil]

The U.S. / global recession deepens, yet the Dow Jones is about to surpass a historic, monumental level. What’s the point of a stock market so intensely manipulated and not remotely tied to economic reality? Valuations have been grossly over-inflated now for years and the stretch continues with stock markets totally unable to stand-on-their-own. Welcome zombie companies that shouldn’t exist . . . .

When the rug gets pulled on valuations, who takes the fall?

Let’s try to keep politics to a minimum. Outgoing Mr. T and incoming Mr. B are not key to this rally (IMO). Central banks are the root. But we will all pay in the form of a lost generation (IMO).

Venezuela's stock market making new highs daily but a hamburger only costs a months salary. BTW The only thing Mr.B is incoming to is a jail cell.

[agstar77]

Venezuela's stock market making new highs daily but a hamburger only costs a months salary. BTW The only thing Mr.B is incoming to is a jail cell.

Irrational exuberance . The stock market is also a victim of the pandemic. Probably a year ahead of itself. When reality hits it won't be pretty. It will be 6 mos to a year to get back to some semblance of normal.

[Ache4Acres]

Money is free and as far as I can see everyone spending it faster than ever. Record new car sales in September. Housing prices rising. Shelves almost bare at Rona - can’t keep up with sales

[Oliver88]

Money is free and as far as I can see everyone spending it faster than ever. Record new car sales in September. Housing prices rising. Shelves almost bare at Rona - can’t keep up with sales

Snowmobile dealerships are having trouble keeping anything on lot.

[farmaholic]

Snowmobile dealerships are having trouble keeping anything on lot.

Better drive to the no snow zones for the hottest deals.

[beaverdam]

Rumblings out of Mr. B camp suggesting 4, 6 even 8 week national shutdown beginning with his presidency starting in January. Story is, he plans a series of government payments like took place in Canada to get people through the shutdown period. Debit be damned.(just like Canada)

Maybe the market is up because of the announcements of two possible vaccines by year end,,, and the faint hope, the shutdowns won't be necessary and workers and business can stay open.

[Sodbuster]

You really have to wonder how this will end, I’ve even a seller last week and today, sitting at about 70% cash now and thinking what have I done. Been thinking of buying puts on the S&P 500 but haven’t had the balls to do it yet.

[errolanderson]

Will the Dow explode to 32,000+ if several vaccines go into production and distribution?

It really doesn’t matter where the Dow explodes to, the ultimate outcome is now the same.

The Dow is now just a inflated number with little economic meaning, This is now a trainwreck that has already hit the brick wall COVID or no COVID. Failure of credit markets will ultimately take this deck-of-cards down (IMO).

[tweety]

It really doesn’t matter where the Dow explodes to, the ultimate outcome is now the same.

The Dow is now just a inflated number with little economic meaning, This is now a trainwreck that has already hit the brick wall COVID or no COVID. Failure of credit markets will ultimately take this deck-of-cards down (IMO).

So what do you suggest to do? Take all your money out of the stock market and put into what?

[the big wheel]

So in reality the big reset if it happens might come either by governments wanting it to happen or it just might be inevitable given the mess that’s built up over time?