People Say Stocks are Still Overvalued ...

[mopek1]

... yet the market keeps going up and up.

They've been saying that for years now. That the crash will come soon.

Is the US still printing money (i.e; quantitative easing)?

Gold is on the rise too, as if people are preparing for the worst.

[Vendot]

It looks like the markets are being propped up with buybacks, the ESF and perhaps other entities but if you look at the action and comments from the big money, hedge fund people are scared and it looks like we're going to hit a 2008 type thing again soon:

Soros Returns To Trading With "Big, Bearish" Bets On Economic Turmoil | Zero Hedge

With A Historic -150% Net Short Position, Carl Icahn Is Betting On An Imminent Market Collapse | Zero Hedge

Gross Says Negative Rates Are Like ‘Supernova’ That Will Explode - Bloomberg

Jeff Gundlach: "Things Are Going To Get Pretty Scary" | Zero Hedge

Paul Singer Says "Everyone Is In The Dark"; Warns Of "Sudden, Intense Market Breakdown" | Zero Hedge

http://www.bloomberg.com/news/videos...-of-cash-today

Gold is up like 27% this year. Probably a good time to go into cash and maybe start considering Gold, Vix, S&P Bear and decent Shorts.

[Manfap]

Money has to go somewhere, and with bond yeilds and cash deposits so low, the $$ needs a home.

All those pension funds have to place x billion a day somewhere.

[CAHEK]

low interest rates lots of money to borrow for cheap to invest

[Barry-xlovecam]

Some stocks (and other traded instruments) are both overvalued and some actually undervalued -- hypothetically. Real valuation is market value.

If you borrow from a lender at interest to make investments or speculations in the financial markets you stand a good chance of having the choice between jumping out a 20th+ floor window or filing for bankruptcy

Historically, lowered interest rates have been seen to inflate stock values and high interest rates, usually with accompanying inflation, depressing stock values. The US elections are also influencing stock prices right now.

Economic policy will probably change after the US elections with regard to the US based exchanges. Latest Soros news: Soros Buys Stake in Liberty Broadband, Sells Barrick Gold - Bloomberg

There is a new technology that will allow 1-10 Gbps multiplexing on last mile coax cable. Last I head it was theoretical

There are also new advancements in Li-ion battery technology: https://techcrunch.com/2016/08/19/ne...hinner-phones/

search 'brexit auto industry' if you are looking to make short sales or buy put options.

Luddites and old-school investors beware :OP

[Jigster715]

Satan spoke and here is what he said.

"Better start collecting cardboard boxes to make new houses."

I'm paraphrasing of course.

Lord Rothschild: "This Is The Greatest Experiment In Monetary Policy In The History Of The World" | Zero Hedge

[woj]

even at the current PE ratio of 20 (which some claim is very high) implied rate of return is at LEAST 5%... which is still a great deal compared to other asset classes...

[DBS.US]

Trump with make it great

[Barry-xlovecam]

Originally Posted by DBS.US

Trump with make it great

I think everyone playing the markets has an a<=>b plan for the election.
What are Fed Funds Futures Telling Us About Rate-Hike Timing? | Fox Business

Interest rate futures look like an interesting "Trump hedge"

[artwilliams]

Quantitative Easing is not printing money. It changes the make up of the money supply by turning government bond holders into cash holders. The amount of money in circulation remains the same. Just saying.

(For those interested ... The government buys back their bonds at a market price. The people who held the bonds now have cash. Many of them take the cash and put it in the stock market. The demand for stocks is driven up and so are the stock prices. When the government starts to resell their inventory of bonds, at some time in the future, it's feared that it will crash the stock market.)

[Struggle4Bucks]

https://www.lewrockwell.com/2016/08/.../whats-coming/

[mopek1]

Originally Posted by artwilliams

Quantitative Easing is not printing money. It changes the make up of the money supply by turning government bond holders into cash holders. The amount of money in circulation remains the same. Just saying.

(For those interested ... The government buys back their bonds at a market price. The people who held the bonds now have cash. Many of them take the cash and put it in the stock market. The demand for stocks is driven up and so are the stock prices. When the government starts to resell their inventory of bonds, at some time in the future, it's feared that it will crash the stock market.)

Thanks for the explanation. It's why I put a question mark beside the term.

So are you saying that the market is up because of current quantitative easing?

[NatalieK]

Originally Posted by artwilliams

Quantitative Easing is not printing money. It changes the make up of the money supply by turning government bond holders into cash holders. The amount of money in circulation remains the same.

ok, so if a product sells well it becomes higher value & the stocks rise. So like with gold, there's still a huge demand, therefore, the stocks continue to rise. When does the fall come, when sales drop?

[Harambe]

Originally Posted by GspotProductions

ok, so if a product sells well it becomes higher value & the stocks rise. So like with gold, there's still a huge demand, therefore, the stocks continue to rise. When does the fall come, when sales drop?

how about old mits , like yourself

[romeo22]

It will grow up till the election day.After that market will slowly go down

[Vendot]

Originally Posted by GspotProductions

ok, so if a product sells well it becomes higher value & the stocks rise. So like with gold, there's still a huge demand, therefore, the stocks continue to rise. When does the fall come, when sales drop?

You don't know what QE is - that's okay because most people do not.

The money supply can remain the same but it will not necessarily always remain the same. It depends on how the newly created money is utilised by, in most cases, the banks.

What is quantitative easing? - BBC News

Why The Money Supply Has Exploded

[NatalieK]

Originally Posted by Harambe

how about old mits

you're constant trolling & stupidity is beginning to look like obsessive behavior to me


D, why don't you just leave

[Vendot]

Great interview with Craig Hemke explaining why all markets are broken:

[artwilliams]

Originally Posted by mopek1

Thanks for the explanation. It's why I put a question mark beside the term.

So are you saying that the market is up because of current quantitative easing?

It part yes. There are other factors too.

[artwilliams]

Originally Posted by GspotProductions

ok, so if a product sells well it becomes higher value & the stocks rise. So like with gold, there's still a huge demand, therefore, the stocks continue to rise. When does the fall come, when sales drop?

In the long term*, the price of services and goods (and that includes stocks) is determined by supply and demand. Actions like quantitative easing can affect the market in the short term. Certainly, when interest rates start to rise, fixed income yields will be more attractive and people will take some of their money out of the stock market. This will cause the demand for stocks to decline and will result in lower stock prices. People have been saying for a number of years that interest rates have to rise. I will it will happen after the American election (assuming Clinton wins).

* ... we are are all dead --JMK

[artwilliams]

Originally Posted by woj

even at the current PE ratio of 20 (which some claim is very high) implied rate of return is at LEAST 5%... which is still a great deal compared to other asset classes...

Bingo! Which is why stocks and (at least in Canada) real estate is doing so well. A third of government bonds now have negative yields. You're paying them to keep your money! As long as interest rates are low, other asset classes will continue to rise.

[Vendot]

Great interview with Carl Icahn on the economy:



Carl Icahn is a billionaire, with a fortune estimated at over $17 Billion USD.

[Barry-xlovecam]

Carl Ichan is a corporate piranha. Carl Ichan is working for Carl Ichan's interests.

?This is about how a bankruptcy was used to transfer value from working people to the super-rich,? said Richard G. McCracken, general counsel for Unite Here, the hotel and casino workers? union that appealed to the high court.

Billionaire Carl Icahn stepped in to buy the casino ? founded by Donald Trump ? after it filed for bankruptcy in 2014.

As the 3rd Circuit Court of Appeals said in January, Trump?s ?plan of reorganization was contingent on the rejection of the collective bargaining agreement,? also known as the CBA, with the union. Icahn promised a ?capital infusion of $100 million? to keep the casino in operation, but ?only if the CBA and tax relief contingencies are achieved.?

Supreme Court asked to rule on Trump casino bankruptcy - LA Times


Hypocrisy at its finest. This maneuver is more common than you think. These type of Billionaires trade businesses like baseball cards and screw workers, stockholders and creditors.

What would a President Trump do? Nominate Carl Ichan to be the Secretary of the Treasury