# While you were out...



## Inor (Mar 22, 2013)

Looking at the financial news sites today I feel like I used to feel when I worked in corporate America and would come back from lunch to find the secretaries had put a couple of those pink "While you were out" papers on my desk.

While the news media has been going all Ebola, all the time, and the administration is busy telling the world global warming is going to make us all die of heat stroke, the stock markets are down nearly 10% from their highs only 3 weeks ago, most of it coming in the last 3 trading sessions. The NASDAQ has led the way and is down slightly more than 10%. The other notable thing is they closed below the 200 day average today. If we do not get some kind of a bounce soon, the automated trading platforms will kick in soon and it could be a long way to the bottom.


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## Maine-Marine (Mar 7, 2014)

I always ask people... if stock is based on a companies value...AND we are living through an unemployment problem and lack of spending money...how are these companies increasing in value.. what is driving things so high


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## Slippy (Nov 14, 2013)

Inor said:


> Looking at the financial news sites today I feel like I used to feel when I worked in corporate America and would come back from lunch to find the secretaries had put a couple of those pink "While you were out" papers on my desk.
> 
> While the news media has been going all Ebola, all the time, and the administration is busy telling the world global warming is going to make us all die of heat stroke, the stock markets are down nearly 10% from their highs only 3 weeks ago, most of it coming in the last 3 trading sessions. The NASDAQ has led the way and is down slightly more than 10%. The other notable thing is they closed below the 200 day average today. If we do not get some kind of a bounce soon, the automated trading platforms will kick in soon and it could be a long way to the bottom.


What a blast from the past Inor. I remember corporate America too; the secretaries were actually women and called, secretaries. Usually the executives were playing grab-ass with them as they smoked at their desks. Every now and then while we worked late, some mid-level manager would pull out a bottle of whiskey from his desk and we would have a snort or two before we went home. e-mail didn't exist, maybe some private messaging system that the company had but rarely used. Memos were typed by secretaries and hand delivered by some mail room flunky.

But I digress...I'm not a doomsday guy on the markets...yet. But People Get Ready, There's a Train A-Comin'.


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## Inor (Mar 22, 2013)

Slippy said:


> What a blast from the past Inor. I remember corporate America too; the secretaries were actually women and called, secretaries. Usually the executives were playing grab-ass with them as they smoked at their desks. Every now and then while we worked late, some mid-level manager would pull out a bottle of whiskey from his desk and we would have a snort or two before we went home. e-mail didn't exist, maybe some private messaging system that the company had but rarely used. Memos were typed by secretaries and hand delivered by some mail room flunky.


And somebody always got fired the Monday after the company Christmas party.

I never got fired, but I frequently got a stern talking to. It was usually something like:

"Inor, I appreciate the technical difficulty and your skills writing a modern animated screensaver. But couldn't you think of something a little more tasteful than a picture of the VP of Marketing shooting flaming gerbils out his ass?" (I actually did that once.) :lol:


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## Camel923 (Aug 13, 2014)

Maine-Marine said:


> I always ask people... if stock is based on a companies value...AND we are living through an unemployment problem and lack of spending money...how are these companies increasing in value.. what is driving things so high


My guess is we have printed so much funny money coupled with no interest on anything worth while other than the stock market has inflated values out of proportion to actual worth. Eventually the bubble bursts and values crash. Those with liquid assets (not in the stock market) now go in and by up severely under valued stocks of strong companies knowing they will make a big profit when things stabilize.


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## Inor (Mar 22, 2013)

Camel923 said:


> My guess is we have printed so much funny money coupled with no interest on anything worth while other than the stock market has inflated values out of proportion to actual worth. Eventually the bubble bursts and values crash. Those with liquid assets (not in the stock market) now go in and by up severely under valued stocks of strong companies knowing they will make a big profit when things stabilize.


That is the other thing I noticed... The interest on the 10 year T-Bill has quietly crept up to almost 2.5%. That is significant for two reasons:

1 - As interest on Treasuries goes up, investors sell stocks to buy the "safe" Treasuries.

2 - Once interest reaches the historical average of about 4.5% more than 50% of all income taxes collected will be needed just to pay the interest on the debt.

The whole Ebola thing is spooky. But, by itself, I think we as a nation could deal with it. But if it starts to slow down commerce, it could bring down the dollar at the same time.


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## Ripon (Dec 22, 2012)

Imagine what Ebola does to mcdonalds, Starbucks and anywhere else people use to go?


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## Camel923 (Aug 13, 2014)

We have violated basic economics for a long time. I am surprised we have not been bitch slapped by the results of these policies for quit awhile. Being the world reserve currency has its perks. I think Inor is on to a huge problem when 50% of the annual budget is to service debt.


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## thepeartree (Aug 25, 2014)

People need to understand the stock market. It is basically gambling. Period. Don't put money in that you can't afford to lose and you'll be fine. That said, you can score some major money if you're smart enough to pick well. I moved my IRA account to the right mutual fund after 9/11 and made every cent back in less than a year. In fact, my gain was about 20%. All the tools are there if you understand what you're looking at.


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## StarPD45 (Nov 13, 2012)

A big part of the run-up in stock prices is people from Europe (the Euro is crashing) and the middle east getting their "money" out of those parts of the world and putting it here, mostly in value stocks and real estate, as a *safer* place to hide their assets.
That's also raising the value of the dollar, at least for the time being.


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## NoobMom (Oct 16, 2014)

thepeartree said:


> People need to understand the stock market. It is basically gambling. Period. Don't put money in that you can't afford to lose and you'll be fine. That said, you can score some major money if you're smart enough to pick well. I moved my IRA account to the right mutual fund after 9/11 and made every cent back in less than a year. In fact, my gain was about 20%. All the tools are there if you understand what you're looking at.


I agree. It's legalized gambling. I'll be super pissed if I lose my money but I'd rather be trying to save for the future. I think prepaying my mortgage may be a smarter move?? But it's too late for what I already have. No way I'd take an early withdrawal penalty..


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## Jeep (Aug 5, 2014)

Well NoobMom if you do lose your money, more than likely so will everyone else. And in that case you won't have to worry about moving, because there will be no bank, no lean, no nothin. So hopefully if it gets to where it looks real bad cash out anyways and use it wisely.


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