Record Stock Market High - How to Spin?

DaisyDay · Jan 22, 2024

Dow rises more than 100 points to close above 38,000 for the first time ever: Live updates

Stocks rose Monday as investors built on the previous session's historic move to record highs.

www.cnbc.com

Will Bidenomics be given credit or blame? Will other politicians try to grab credit for themselves? Stay tuned...

Desk trauma · Jan 22, 2024

It’s simple:

D White House and good economic outcomes ? Despite them being in office.

R White House and good economic outcomes? Because of them being in office.

D White House and bad economic outcomes? Because of them being in office.

R White House and bad economic outcome? Despite them being in office.

TL;DR
Heads Republicans win, tails Democrats lose.

Tuur · Jan 22, 2024

I wish there was a DOW P/E index. That would be the aggregate P/E ratio of the DOW companies.

evoeth · Jan 22, 2024

Tuur said:
I wish there was a DOW P/E index. That would be the aggregate P/E ratio of the DOW companies.

There's even better than that.
There's the Case Shiller trailing P/E.
That's the current price, divided by 10 years of past earnings (to smooth out recessions).

Shiller PE Ratio - Multpl

Shiller PE Ratio chart, historic, and current data. Current Shiller PE Ratio is 37.16, a change of +0.02 from previous market close.

www.multpl.com

Tuur · Jan 22, 2024

Kind of on the high side, isn't it?

evoeth · Jan 22, 2024

It is concerning.

Laodicean60 · Jan 22, 2024

Tuur said:
Kind of on the high side, isn't it?

Yep stocks are overvalued, waiting for a pullback but you can't deny the market sees something positive in the economy.

rambot · Jan 22, 2024

Oh I'll tell you. I'll tell you for me, why it's meaningless.

Because the performance on the stock market bears exactly no impact on common people. I don't think data or stats are needed to remind everyone who are the primary stock holders (and therefore the people most likely to make coin).

Find a way to appropriately tax people NOT working and making money on OTHER people working HARDER while those workers don't get more money for working harder.

And money being used for stock buy backs invest of investing in employees.

I realized that during Trump: I would never use the stock market to establish the health of an economy again.

Tuur · Jan 23, 2024

Laodicean60 said:
Yep stocks are overvalued, waiting for a pullback but you can't deny the market sees something positive in the economy.

Something positive in investing, which may or may not be the same. It's like the Saturday morning I was feeling meaner than usual and someone came by and started with "Wouldn't it be nice if there was no more war?"

"I don't know," I said. "I may have money in arms companies."

If I knew much about investing, I'd be rich. I obviously don't know much. I do know that high P/E ratios means that enthusiasm in investing is exceeding the reasonable return on investing.

Tuur · Jan 23, 2024

rambot said:
Because the performance on the stock market bears exactly no impact on common people.

That would come as a shock to those who lived through the Great Depression, or those who have retirement invested in a stock fund.

JustOneWay · Jan 23, 2024

Tuur said:
That would come as a shock to those who lived through the Great Depression, or those who have retirement invested in a stock fund.

Only 10% of Americans at the time were invested in the stock market. The banks lost, and in turn people with money in the banks lost.

Tuur · Jan 23, 2024

JustOneWay said:
Only 10% of Americans at the time were invested in the stock market. The banks lost, and in turn people with money in the banks lost.

More than that. Businesses closed, and without businesses there were no jobs. No jobs, no employment. No employment, no money.

JustOneWay · Jan 23, 2024

Tuur said:
More than that. Businesses closed, and without businesses there were no jobs. No jobs, no employment. No employment, no money.

You seem to be telling us that another depression is coming because the stock market is too high for your liking. Pretty funny.

ozso · Jan 23, 2024

A direct result of Trump winning the Iowa primary.

o_mlly · Jan 23, 2024

DaisyDay said:
Will Bidenomics be given credit or blame?

The price of stocks, just like any other commodity, increases due to inflation.

During Covid, Bidenomics made the boneheaded basic economic mistake of stimulating (~ $5 trillion) an economy facing, not a demand problem, but a supply problem. The pandemic economic shutdown reduced the supply of goods and services available to people. Short on goods and services and long on Bidenomics "free" money = inflation. Throwing money at a dwindling supply always does just that.

evoeth · Jan 23, 2024

Tuur said:
That would come as a shock to those who lived through the Great Depression, or those who have retirement invested in a stock fund.

This is more than 50% of those in retirement.

Especially anyone with a pension.

JustOneWay · Jan 23, 2024

Tuur said:
More than that.

Go read some history. There were no IRS's or 401K's in the 1920s

NxNW · Jan 23, 2024

evoeth said:
It is concerning.

Why?

NxNW · Jan 23, 2024

rambot said:
Oh I'll tell you. I'll tell you for me, why it's meaningless.

Because the performance on the stock market bears exactly no impact on common people. I don't think data or stats are needed to remind everyone who are the primary stock holders (and therefore the people most likely to make coin).

Anyone can contribute to their 401k or IRA.

iluvatar5150 · Jan 23, 2024

o_mlly said:
The price of stocks, just like any other commodity, increases due to inflation.

During Covid, Bidenomics made the boneheaded basic economic mistake of stimulating (~ $5 trillion) an economy facing, not a demand problem, but a supply problem. The pandemic economic shutdown reduced the supply of goods and services available to people. Short on goods and services and long on Bidenomics "free" money = inflation. Throwing money at a dwindling supply always does just that.

You know that the first two of the three rounds of stimulus, and a little over half the total dollar amount was signed by Trump, right?

And there were both supply and demand problems. Demand disappeared from some sectors (e.g. restaurants, concerts, anything where people gather) and shifted towards others that produced things that could be consumed at home (e.g. residential toilet paper vs commercial). A lot of people work in industries that saw their demand tank.

Record Stock Market High - How to Spin?

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