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Discussion in 'Politics, Religion, Social Issues' started by aaronvan, Jan 25, 2017.
Apple hit $121.10 this morning.
Good. Now we can have a conversation about how the stock market's levels when they go up have seemingly no impact on the well being of American's everyday lives.
It goes up, nothing changes for Americans, it goes down, good luck with the layoffs.
Glad you are ok with what obama left the country with. If in a year the country goes to **** I don't want to hear how it was obama's fault ok?
That's a great point. It could be that the market is reacting to the return of American jobs and American factories. After all, the stock market is primarily psychological. Only time will tell.
I don't think it's any secret that Wall Street hits historic highs before a crash....
Thank you Obama
From 7,949.09 to 19,827.25
SELL SELL SELL!!!
SELL EVERYTHING I HAVE(*), NOW!
(*) I just made a $0.05 profit!
I'm watching The Big Short to refresh my memory....
(the book was actually better)
Agreed. I re-watched it the other week, it's a very good movie but the book is far superior.
Moneyball is another one. Good movie, great book.
9-18 maybe. Since then it is more to do with Clinton and then Trump.
I love that you think that you can analyze the market so simply.
Thank you Trump! Looks like people are watching the reactions of your meetings with businesses and seeing the support of the America First Movement!
WHY ARE WE STILL PAYING ATTENTION TO THE DOW?? IT IS THE WORST MEASURE OF THE ECONOMY! MOAR YELLING!!
I listened to an NPR show where they were freaking out about how dumb it is as well, since it follows so few stocks and because it's growth is based off some absurd relative growth delta instead of absolute increase in value.
The fact it follows only a few stocks isn't a problem. By definition, all indexes follow some cross-section of stocks. The problem with the Dow is that it is just a sum of all the values of those stocks and does not take into account the relative sizes of the companies and the number of shares they have issued.
For example, company A worth $1,000,000 issues 1000 shares worth $100 each. Company B worth $1,000,000 issues 100 shares worth $10,000 each. We have a Dow-like index of A and B valued at $10,100.
Say one day the value of A goes up by $100,000 to $1,100,000 and the value of B goes down by $100,000 to $9,000,000. They should cancel each other out, right? The total value of the two companies is still the same $2,000,000.
Yet the Dow-like Index shows the market is down $990! Oh no, the world is ending sell sell sell, but it's actually not because the Dow sucks!
Good indexes normalize the value of individual shares to the value of the company as a whole, and thus a good index should show no change in market in the above example.
Sorry, the new president doesn't have that much effect on the economy until a few months into his term. I bet if it were crashing right now you'd happily be blaming Obama.
This is not "the economy", this is daily financial trade. A sneeze could cause the DJIA to go up or down depending on who and why it is done. Clearly there is enough trust to cause the DJIA to be humanely going up, and there is no shock either way.
I agree with @oneMadRssn that this ain't the best index to use for any type of serious analysis. I use coffee futures...
Actually, 19,999.67 was high 2 weeks before inauguration of Trump.
humm, cant find the exact date, highest found is 19,991.19 on Jan 6, but I know it was higher.
You are absolutely right and I'm not defending the Dow in the slightest. But the real problem is that it's a metric that reflects positively on Obama's presidency.
Obama left the country with a AA rating .
I think replying to a post attributing stuff to Obama at 2 decimal places precision it is suitable level of analysis.
More in depth stuff I'll leave to professional economists who excel at providing reams of nonsense to explain anything and everything.
Stock indices are about measuring both faith in the market, faith in the economy, and shareholder valuation of the companies (both present and future) in the index. It's an indicator of the economy.
This is about how representative the index is of all stocks on the exchange, and how the index is calculated... it's a different argument on the same issue of it's value as an indicator.
As @yaxomoxay said it's about daily trade and reactions to information. "Market efficiency" is what they call it. A few weeks before his presidency began, Trump eroded almost $3B in market valuation with two tweets!
... and there are plans to add 10 Trillion in debt. So don't expect that to go up with information like that!