The Ongoing New Financial Era Thread

psu_dad
Posts: 1725
Joined: Sun Aug 13, 2017 6:59 pm

Re: The Ongoing New Financial Era Thread

Postby psu_dad » Thu Oct 11, 2018 4:12 pm

Brutal. Most of the year's gain in the DJIA and S&P500 wiped out in 2 days. But it's pretty much been like that all year. The hilarious part is that there are now 10000 articles about why this is perfectly explainable. Then why didn't you clowns explain it last week?
Fire Alex Cora. (On hold pending further review)

Blue&White
Posts: 2616
Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Thu Oct 11, 2018 4:19 pm

Who knows what is going on. I've been reading for a while that valuations are unsustainable and the market was due for a correction. But, the whole time I've been reading that the market continued to go up and up and up. So, any and all explanations need to be taken with planets of salt. I don't think anyone knows what is really going on.

Trump is blaming the Fed and the interest rate hikes. I suppose that could be it. But, so could the tariffs. And, it's also possible it has nothing to do with either of those things and is something else entirely. Who knows. But, whatever is going on, I'm sure the Republicans are thrilled it's happening less than 30 days before the midterms. It is what it is and you can't control these things, but the timing really sucks for them.

That's a shame.
Alex Cora sucks. Mickey Callaway sucks. Baseball sucks. Everything and everyone just sucks. Is it football season yet?

psu_dad
Posts: 1725
Joined: Sun Aug 13, 2017 6:59 pm

Re: The Ongoing New Financial Era Thread

Postby psu_dad » Thu Oct 11, 2018 4:43 pm

If you believe the MSM, the vast majority of Americans don't care about the stock market because they don't own stock. If that's the narrative when the market is booming, I don't know why it should change when the market is in decline. A stock market decline that impacts the overall economy and results in significant job loss is another matter entirely, but it's way too early for that.
Fire Alex Cora. (On hold pending further review)

LioninVa
Posts: 619
Joined: Tue Aug 15, 2017 11:49 am

Re: The Ongoing New Financial Era Thread

Postby LioninVa » Thu Oct 11, 2018 5:06 pm

Our 401k’s are tied to stocks and bonds, I think.

Some average joes might dabble a little more with the market but not like the top percentage of folks. A day like today might cost me a hundred bucks while others lose massive money. In reality, until you go to cash out it is mostly Monopoly money.

Blue&White
Posts: 2616
Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Thu Oct 11, 2018 5:08 pm

Most Americans are not in the market, no. I've read the numbers as low as 20% but I dont' know that I believe that given how many people have 401ks. But, the narrative is that how goes the market goes the economy. Do people really factor in the DJIA into their voting decisions if it has zero impact on them? I have absolutely no idea.

I do think the risk is with middle class voters who voted Republican/Trump may jump ship. How big a demographic is that? Not sure, but how big does it have to be? Trump won PA by like 40,00 votes. Are there 40,000 middle class corporate wage slaves in PA who may be pissed off that their 401ks are down and they lost a bunch of their tax breaks? The ones in the Philly suburbs may be financially worse off with the new law (similar to the people in NJ and NY). I don't know, but it wouldn't shock me if there were.

I know this is not a presidential election and the logic doesn't completely carry through for the midterms, but I think, generally, that's how it could matter.

We'll see. Both in November and in 2020. I can't even guess at what is going to happen because I really don't know.
Alex Cora sucks. Mickey Callaway sucks. Baseball sucks. Everything and everyone just sucks. Is it football season yet?

psu_dad
Posts: 1725
Joined: Sun Aug 13, 2017 6:59 pm

Re: The Ongoing New Financial Era Thread

Postby psu_dad » Fri Oct 12, 2018 7:12 am

Pre-market trading this morning is solidly in the "green", as are the European markets (so far). Hopefully the hemorrhaging is over.
Fire Alex Cora. (On hold pending further review)