Stock market

mickeyrat said:

tempo_n_groove said:

Can anyone explain the increase still in the DOW?  

With covid looming again and supply chains still catching up I am a little confused.  I follow Caterpillar as a barometer and it's been on a decline the last month and that usually tells a story unless they can't make sales because of supply issues?

parts for all kinds of vehicles are scarce.

my guess is many fleet vehicle orders (in our cases KW and International) were scrapped last year. So if those parts didnt get used there wasnt a need to produce more.

My assigned truck is down 3 weeks now, waiting on a left steer spindle, which would allow the steering kingpin to be replaced at the same time. It would then get aligned properly. Tie rod replaced last year. was burning through steer tires every two months cuz the left tow was in 1 1/4 to 1 1/2 inches. 400 each became yrailer tires in 2 months.... 6 or 8 times!!!!!

gvn2fly1421 said:

tempo_n_groove said:

Can anyone explain the increase still in the DOW?  

With covid looming again and supply chains still catching up I am a little confused.  I follow Caterpillar as a barometer and it's been on a decline the last month and that usually tells a story unless they can't make sales because of supply issues?

I will take a shot with a non-expert opinion but someone who has followed the stock market for about 15 years.

1.  You mention covid looming, quite frankly, the stock market (and people) just don't give a damn anymore and haven't for a while.  
2.  The US Government has pumped how much money into the economy over the past 16 months?
3.  And probably the correct answer, the stock market is manipulated and not rational.  It is a waste of time to try to make sense of it, rather just be a part of the ride!

*Please do not take my opinion on covid and derail this thread.  The above is my opinion and mine alone, any covid talk can go in the virus/vaccine thread.  This is not directed at you tempo, I just know how these things go.  Y'all can disagree about my covid takes, but this is about the stock market in here.  We must be able to differentiate topics.

mrussel1 said:

gvn2fly1421 said:

tempo_n_groove said:

Can anyone explain the increase still in the DOW?  

With covid looming again and supply chains still catching up I am a little confused.  I follow Caterpillar as a barometer and it's been on a decline the last month and that usually tells a story unless they can't make sales because of supply issues?

I will take a shot with a non-expert opinion but someone who has followed the stock market for about 15 years.

1.  You mention covid looming, quite frankly, the stock market (and people) just don't give a damn anymore and haven't for a while.  
2.  The US Government has pumped how much money into the economy over the past 16 months?
3.  And probably the correct answer, the stock market is manipulated and not rational.  It is a waste of time to try to make sense of it, rather just be a part of the ride!

*Please do not take my opinion on covid and derail this thread.  The above is my opinion and mine alone, any covid talk can go in the virus/vaccine thread.  This is not directed at you tempo, I just know how these things go.  Y'all can disagree about my covid takes, but this is about the stock market in here.  We must be able to differentiate topics.

I agree with #2, not necessarily the other two.  The GDP forecast is so healthy,  I think investors,  particularly institutional investors, are still on the train.  And they generally invest rationally. 

gvn2fly1421 said:

mrussel1 said:

gvn2fly1421 said:

tempo_n_groove said:

Can anyone explain the increase still in the DOW?  

With covid looming again and supply chains still catching up I am a little confused.  I follow Caterpillar as a barometer and it's been on a decline the last month and that usually tells a story unless they can't make sales because of supply issues?

I will take a shot with a non-expert opinion but someone who has followed the stock market for about 15 years.

1.  You mention covid looming, quite frankly, the stock market (and people) just don't give a damn anymore and haven't for a while.  
2.  The US Government has pumped how much money into the economy over the past 16 months?
3.  And probably the correct answer, the stock market is manipulated and not rational.  It is a waste of time to try to make sense of it, rather just be a part of the ride!

*Please do not take my opinion on covid and derail this thread.  The above is my opinion and mine alone, any covid talk can go in the virus/vaccine thread.  This is not directed at you tempo, I just know how these things go.  Y'all can disagree about my covid takes, but this is about the stock market in here.  We must be able to differentiate topics.

I agree with #2, not necessarily the other two.  The GDP forecast is so healthy,  I think investors,  particularly institutional investors, are still on the train.  And they generally invest rationally. 

Crazy to think that in February of 2009 the DJIA was around 7,000.  In March of last year it was around 19,000.  It has almost doubled since then and has crossed 35,000.  Just insane.

Add to the list above, I think when March of last year hit, the markets saw a crazy rise of retail investors jump in.  Thank Davey Pageviews for some of that.  And Robinhood.  And currently meme stocks.

mrussel1 said:

I think those tools and retail investors have a material impact on individual stocks.  I don't think they are moving the market.  

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

I think those tools and retail investors have a material impact on individual stocks.  I don't think they are moving the market.  

Really huh?  Have you seen the stock prices of AMC and GameStop?

I do believe it is possible for the little guy, a lot of them, to help move a market.  They proved it already.

Yeah those are individual,  targeted stocks,  not the market.  When Gamestop swung wildly,  did any of the major indices follow suit? 

Day traders do not have the financial muscle of institutional investors. 

tempo_n_groove said:

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

I think those tools and retail investors have a material impact on individual stocks.  I don't think they are moving the market.  

Really huh?  Have you seen the stock prices of AMC and GameStop?

I do believe it is possible for the little guy, a lot of them, to help move a market.  They proved it already.

Yeah those are individual,  targeted stocks,  not the market.  When Gamestop swung wildly,  did any of the major indices follow suit? 

Day traders do not have the financial muscle of institutional investors. 

Understood.  A hedge fund w billions behind them can influence the whole market.

I don't think that Robinhood and Etrade let you day trade though.  You need a higher level of income to be able to do that and most of them aren't in that paygrade.

gvn2fly1421 said:

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

I think those tools and retail investors have a material impact on individual stocks.  I don't think they are moving the market.  

Really huh?  Have you seen the stock prices of AMC and GameStop?

I do believe it is possible for the little guy, a lot of them, to help move a market.  They proved it already.

Yeah those are individual,  targeted stocks,  not the market.  When Gamestop swung wildly,  did any of the major indices follow suit? 

Day traders do not have the financial muscle of institutional investors. 

Understood.  A hedge fund w billions behind them can influence the whole market.

I don't think that Robinhood and Etrade let you day trade though.  You need a higher level of income to be able to do that and most of them aren't in that paygrade.

Etrade allows day trading.  You can do naked,  spreads, etc. I thought RH let you do it,  but I don't use them.  I've had an etrade account forever.  I have never done it myself.  I'm a long,  blue chip, market leader type investor. 

My guy!  Or girl, not sure after all the names called I know what you actually are.

When it is brought up, I tell people I have the most boring stock portfolio ever.  But, it has provided great returns over the past 15 years. 

gvn2fly1421 said:

mrussel1 said:

gvn2fly1421 said:

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

tempo_n_groove said:

mrussel1 said:

I think those tools and retail investors have a material impact on individual stocks.  I don't think they are moving the market.  

Really huh?  Have you seen the stock prices of AMC and GameStop?

I do believe it is possible for the little guy, a lot of them, to help move a market.  They proved it already.

Yeah those are individual,  targeted stocks,  not the market.  When Gamestop swung wildly,  did any of the major indices follow suit? 

Day traders do not have the financial muscle of institutional investors. 

Understood.  A hedge fund w billions behind them can influence the whole market.

I don't think that Robinhood and Etrade let you day trade though.  You need a higher level of income to be able to do that and most of them aren't in that paygrade.

Etrade allows day trading.  You can do naked,  spreads, etc. I thought RH let you do it,  but I don't use them.  I've had an etrade account forever.  I have never done it myself.  I'm a long,  blue chip, market leader type investor. 

My guy!  Or girl, not sure after all the names called I know what you actually are.

When it is brought up, I tell people I have the most boring stock portfolio ever.  But, it has provided great returns over the past 15 years. 

I don't have time to manage stocks.  I'm heavily into amazon, google, chase, disney, and a few others.  Indexes are focused on SPDR and some midcap stuff, but growth too. 

I got into google in probably 2006 or so.  Have never sold a share.  Although I do have to pay attention to the anti-trust legislation to be careful.  Under the three current major laws (Sherman's, etc.), there's no way it violates those laws.  Most of it is political posturing.  Same with Amazon.  If it looks like there will be real reform to the federal laws, I may have to divest a bit. 

That's awesome!  And good for you!

Knowing my situation, was 2020 your best year financially?  Our accounts saw the highest returns we have ever seen in the 15 years we have been investing.  We bought a few blue chips around the dip, not at the bottom because who does that, but they are almost doubled where they were when we bought and moved some of my wife's retirement around.  That's all we did.  It helped that WMT and KR never saw the dip that most stocks saw and still haven't.