Why is the stock market going gangbusters?

<div class='quotetop'>QUOTE(Pinto Girl @ May 30 2007, 04:51 PM) [snapback]452391[/snapback]</div>

I tried to post a chart, but uploads are not yet working. (This has been reported to Danny. I think he has his hands full right now.)

However, the chart I would have posted shows the Dow at a bit over 11,000 at its highest point in 2001, probably around April or May, and down to a bit over 8,000 in what might have been September, then down to maybe 7,200 towards the end of 2002. It's at 13,627.64 now. All but the last number are from eyeballing a small chart, so are very approximate. However, the DOW is far and away higher than it's ever been.

Whether that's solid value, or an outrageous bubble, I'll leave to others to try to decide.

The S&P 500 is right about where it was at its high point in 2000.

The Nasdaq is at about half its high 2000 value.

Toyota is down from the beginning of this year, but well above where it was at its high point in 2000.

 

<div class='quotetop'>QUOTE(mojo @ May 31 2007, 12:57 PM) [snapback]452763[/snapback]</div>

A source would be helpful. Plus it's hard for anyone one report to prove or disprove anything especially economic policy's. But I'm willing to look at the numbers!

Wildkow

 

<div class='quotetop'>QUOTE(dbermanmd @ May 31 2007, 10:57 AM) [snapback]452568[/snapback]</div>

Slightly (just) OT, but since this has come up in more than one post:

Sigh. There has been no "housing market burst" if by that you are trying to say a housing market bubble burst. We all heard all about how the housing market bubble was going to burst all through 2006. All the media "experts" confidently predicted this. Never happened. What happened, and what needed to happen, was a correction, as the increases of the previous five years were unsustainable. All the talk of a bubble burst was sensationalism at its worst.

Just because you heard it on tv doesn't make it true.

Now back to your regularly scheduled political debate.

 

<div class='quotetop'>QUOTE(daniel @ May 31 2007, 08:52 PM) [snapback]452921[/snapback]</div>

The old adage says, "Sell in May and go away." I've been expecting it, but, nada. We'll see what the next couple of weeks bring.

 

<div class='quotetop'>QUOTE(Wildkow @ May 31 2007, 10:16 PM) [snapback]453010[/snapback]</div>

I was referring to Darwoods link
http://news.yahoo.com/s/ap/20070531/ap_on_...yZ61cV3mM0E1vAI

 

Rising interest rates cause market crashes.
The basic psychology which is driving the market lately is a reaction to a pause in interest rate increases.When mediocre economic news comes out,investors breath deep and are pleased that a slow economy wont cause another rate increase.(and would be elated at the prospect of a decrease in rates)
When the economy shows signs of heating up ,watch out .Rates may need to be raised to control inflation and sooner or later ,rate increases will cause another crash.
My take is opposite of Dr Bermans.The Bush economy sucks so stocks are up.
Also the low dollar makes stocks a bargain to the rest of the world.
Also Exxon stock has doubled in the past few years and is a major component of the DJIA

 

The market is way over due for a correction (10% or so).

 

<div class='quotetop'>QUOTE(Darwood @ May 31 2007, 01:12 PM) [snapback]452777[/snapback]</div>

What bothers me is you don't pay for a tax cut. The government less money coming in. It should adjust accordingly.

<div class='quotetop'>QUOTE(Darwood @ May 31 2007, 01:12 PM) [snapback]452777[/snapback]</div>

The tax cuts, in the grand scheme of things, are a drop in the bucket. From what I've read, the cuts stimulated the economic recovery and actually increased revenues, but I guess there is some debate on that. What really is at issue is the government running at a loss for years and years. They have spent every dollar in the social security trust fund and then some. There are so many programs, like Medicare/medicaid that have been running at a loss. This isn't something you can blame on just Bush or Clinton, it was happening long before them, and by both parties

The incoming democrats promised the elimination of earmarks, but that clearly hasn't happened.

I had hoped that a Rep president/congress would make progress. What I've realized is most of congress has one common goal, to bring money to their districts/states so they can get re-elected.