Rates plummet, its a good thing, you can buy a house or get financing for a car much more cheaper. When gasoline goes down, its a good thing because youre spending less money on a basic necessity. Think of it as a tax cut. Even the strong dollar, which has hurt so many of our international companys bottom line can be a good thing. It means you can travel overseas and get much more bang for your buck when youre there. So if all these good things are occurring in one day. Why does the market get beaten to a pulp . Dow plummeting 296 points. S p plunging 1. 87 nasdaq nosediving 2. 42 . I think this sell off is all about the way we got a strong dollar, the way oil has come down so much. And the way Interest Rates have plummeted. First, understand that stocks can react quickly stimuli. Because stocks are for the most part trading together commodity it shouldnt be the case but we know it is. Short term stocks should trade based on the fundamentals. They are meant to be attached to companies
Short term stocks should trade based on the fundamentals. They are meant to be attached to companies arent they . But thanks to forces ranging from what the Federal Reserve is doing or saying to the price of oil, the politics to iowa strong polls to hedge funds betting against s p 500 futures rather than selling individual stocks that darn futures tail that wag and sometimes strangle. We get instant reactions that are just like the instant political analysis we heard about. The incident analysis is often wrong but that doesnt stop people from acting on it. Stocks are no different. Now we tend to think about commodities the same way we think about the tides of the ocean. Lets use that example tonight. When things are good and tides coming in, everything in the water will rise as it comes gently rolling towards the beach. A day at the beach. When the tide is going out, though, everything drowns as it gets swept out to sea. That analogy. When it comes to the stock market there are vicious
On stocks easily. Stocks hammered earlier in the week ended up much higher by todays close. I wouldnt be surprised if amazon bounces back next week. Situations in mind when we get another flood of earnings next lets keep the bounce it is back situations in mind when we get another flood of earnings next week and a flood of incredible guests, by the way, when we take this show on the road. We are going to San Francisco to do a countdown for the big game. So stay tuned. Guests were talking to. I was blown away. You know we are constantly trying to figure out what will happen to the independent Oil Companies that ruled the world. Companies like anadarko which is a tremendousle oil company with terrific properties. This is exactly the paradigm. This is a tough environment for them and the thought is somebody will take a run at the guy ifs they stand still. I say, lets hear them out. Maybe they have a plan to deal nd with the low price or so they dont. This former golden boy of the oil patc
Businesses and consumers the crew bounced from 22 to 33. Any rebound means the Oil Companies get to raise more capital buying more time to stay in business. When it comes to higher oil. This week we learned people quit on stocks easily. Stocks hammered earlier in the week ended up much higher by todays close. I wouldnt be surprised if amazon bounces back next week. Lets keep the bounce it is back situations in mind when we get another flood of earnings next lets keep the bounce it is back situations in mind when we get another flood of earnings next week and a flood of incredible this show on the road. We are going to San Francisco to do a countdown for the big game. So stay tuned. You are not going to believe the guests were talking to. I was blown away. You know we are constantly trying to figure out what will happen to the independent Oil Companies that ruled the world. Companies like anadarko which is a tremendousle oil company with terrific properties. This is exactly the paradigm
Nasdaq climbing 2. 38 . What the heck happened to make these things go right for stocks . First, amazingly we decoupled from the chinese stock market. Finally we got a good week for oil. As much as it is a negative for businesses and consumers the crew bounced from 22 to 33. Any rebound means the Oil Companies get to raise more capital buying more time to stay in business. When it comes to higher oil. This week we learned people quit on stocks easily. Stocks hammered earlier in the week ended up much higher by todays close. I wouldnt be surprised if amazon bounces back next week. Lets keep the bounce it is back another flood of earnings next lets keep the bounce it is back situations in mind when we get another flood of earnings next week and a flood of incredible guests, by the way, when we take this show on the road. We are going to San Francisco to do a countdown for the big game. So stay tuned. You are not going to believe the guests were talking to. I was blown away. You know we a