The amazing resilience of the stock market

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NorthReport

Agreed! 

Goldman, Deutsche Bank Say Pound Plunge Is Just Getting Started

http://www.bloomberg.com/news/articles/2016-07-06/goldman-deutsche-bank-...

NorthReport

S & P 500 Index moving very close to the highest ever. What an amazin' run which is wonderful news for people's pension plans.

S&P 500 IndexINDEXSP: .INX - Jul 8, 2:25 PM EDT2,128.63Price increase30.73 (1.46%)

NorthReport

With this year being election year in the USA Democrats and their Wall Street buddies will be turning on the economic jets as much as possible to show as robust an economy as possible in November
The show must go on as they say and it appears to be doing so

http://www.bloomberg.com/news/articles/2016-07-10/asian-stock-futures-pa...

NorthReport

stock market is breaking records this morning and is at its all time high

http://www.bloomberg.com/news/articles/2016-07-11/u-s-stock-index-future...

NorthReport

S&P 500 IndexINDEXSP: .INX - Jul 11, 12:40 PM EDT2,142.28Price increase12.38 (0.58%)

NorthReport

The shorts must be covering now. 

NorthReport

Bezos Beats Buffett as Amazon Market Value Tops Berkshire

http://www.bloomberg.com/news/articles/2016-07-11/bezos-beats-buffett-as...

NorthReport

We have had a dot.com bubble but we are moving more more and more into the technological era, and the NASDAQ may drop a bit, but don't expect to see it crash as it did in the past.

Technology is now too ingrained into our lives, and we absolutely require it now to function as a society, and technology is expanding more and more throughout the planet.

NorthReport

I think this is the stock market process.

In the stock market stock prices go up and they go down. If you go long a stock it means you purchase and thus own a stock, hoping it will appreciate in value and/or pay you a dividend.

Shorting a stock, which means selling a stock which you don't own, hoping to buy it back after it has fallen in price. But short selling has a little additional twist. When you short a stock, your broker needs to deliver the stock on settlement day. What happens is that most investors leave their stock purchases with their brokers, so your broker will lend you the stock you shorted so that delivery is executed as scheduled. But occasionally your broker might advise you that they no longer have any stock to lend you, so you might have to buy the stock back at the current market price which might not be the best time for your investment.

Investors are fearful of short selling for 2 main reasons:

1 - public companies want to sell their stock so in a sense you are competing with them 

2 - theoretically there is no limit to what you can lose 

The reality is you can make or lose money shorting stocks and you can make or lose money purchasing stocks.

There are always exceptions but the important rule of thumb is the bears make a little, the bulls make a little, but the pigs make none. 

 

 

 

 

NorthReport

S&P 500 Index another record high today!

DJIA record high today!

NorthReport

What happened to what was such a promising company?

‘It’s a zero’: Short-seller adds to a day of bad news for Valeant Pharmaceuticals

http://business.financialpost.com/investing/trading-desk/its-a-zero-shor...

NorthReport

Don't say you weren't warned, eh!

The Housing Market Is Waving a Red Flag

Third-party investors are making up an alarmingly high share of auction purchases, according to housing-data firm RealtyTrac

http://www.bloomberg.com/news/articles/2016-07-14/the-housing-market-is-...

NorthReport
NorthReport
NorthReport

This is like the Energiser Bunny as Wall Street just keeps going and going.

Microsoft helps Wall St. to another day of record highs

http://www.reuters.com/article/us-usa-stocks-idUSKCN1001AT

NorthReport
NorthReport
NorthReport
NorthReport

Records breaking left, right, and centre in the financial markets are almost a daily event now.

Clinton will be pleased.

NorthReport
NorthReport

The stock market continues to rally into record territory

http://www.bloomberg.com/news/articles/2016-08-22/asian-shares-seen-lowe...

NorthReport

Seven years now the stock market has been on a roll and yet the idiotic naysayers keep telling you the world is going to hell
Yes there are problems like global warming but like every other problem faced by mankind we will overcome

Pondering

NorthReport wrote:
Seven years now the stock market has been on a roll and yet the idiotic naysayers keep telling you the world is going to hell Yes there are problems like global warming but like every other problem faced by mankind we will overcome

You judge the well-being of the world on stock market conditions?

 

Sean in Ottawa

NorthReport wrote:
Seven years now the stock market has been on a roll and yet the idiotic naysayers keep telling you the world is going to hell Yes there are problems like global warming but like every other problem faced by mankind we will overcome

Wow. What a statement.

Saying something will not happen becuase it has not yet happened is an empty assertion.

Further, the rationale for saying the world is in crisis comes from a recognition not of threats but that the situation is simply not sustainable.

We have migrants due to conflict and the world cannot cope with them. We have very clear signs of climate change. We know that this will create migrations such as the world has never seen. This migrations will be people coming from places they view as ruined by the greed of the places they are forced to go to. Think about that. It cannot end well.

We have economic directions that nobody thjinks are sustainable -- there is just a disagreement about how it will stop.

And then you call the people saying there is a problem "idiotic naysayers." From there you assert that global warming will be overcome just because we overcame all privious problems -- sounds like a conversation that could have happened between dinosaurs if they had been able to talk. It is really -- shall we say -- a "faith-based" outlook on the world. And that faith based-idea comes from a person calling those who disagree idiotic.

Michael Moriarity Michael Moriarity's picture

Well, at least NR finally managed to be outrageous enough to get some other babblers to comment on his stupid thread.

NorthReport

The above kind of thinking is the reason the left rarely win elections as voters are just not that interested in the negativity and the nonsense

The TSX is close to record highs, millions of people have been lifted out of poverty, we haven't had a world war in over 70 years, but according to some of the ridiculous comments here you would think we were living a nitemare

https://ca.finance.yahoo.com/q/bc?s=%5EGSPTSE#symbol=%5EGSPTSE;range=5y

montrealer58 montrealer58's picture

How do you reconcile your disparaging comments about 'the left' on a progressive board? I think it's time for you to get lost.

NorthReport
NorthReport

The naysayers continuously keep it up but even a stopped clock is correct twice a day.

Someone should perhaps show then a S&P 500 Index chart over the past 50 years but then of course they remind me of Trump who will say anything with no regards for reality or the truth.

Meanwhile working people with their expanding pension plans and personal savings invested in the stock market will probably be in good shape for their retirement.

 

Mr. Magoo Mr. Magoo's picture

Not to tout the virtues of markets, in the abstract sense, but they ARE supposed to be self-correcting.  If the demand for something is low then lowering the price (eventually) brings that demand back up.  Except for Crystal Pepsi.

Mr. Magoo Mr. Magoo's picture

Quote:
both the greens and ndp are not challenging market dominance. certainly they are not calling for another economic system.

Back when people bartered potatoes and cloth for cooking pots, it was still the system.

epaulo13 epaulo13's picture

..and your equating capitalism with barter?

Mr. Magoo Mr. Magoo's picture

Quote:
..and your equating capitalism with barter?

No, I'm equating barter with the earliest forms of the market.

Capitalism (private ownership of the means of production) is not a synonym for "the market", or "market forces" or "the law of supply and demand".

epaulo13 epaulo13's picture

..i disagree and believe your definitions are to narrow. markets today are one of many mechanisms of economic control and part and parcel of capitalism.

..what do you think of the rest of my post?

epaulo13 epaulo13's picture

..while i don't agree with northreport on the values of the market i also don't see much difference with what he is saying and what the greens or ndp are saying. certainly not different than what mulcair said about balanced budgets and certainly not what notley is saying about the tarsands and pipelines.

..both the greens and ndp are not challenging market dominance. certainly they are not calling for another economic system. both tell us our problems can be resolved by tweaking the system and that they are the ones to do it. i believe this is fantasy but the system is not what is argued. what is argued is that the population will be better off than with the cons and libs. this may be true but doesn't deal with core issues.

NorthReport

I wouldn't be in such a hurry to return the right-wing to power in Alberta but that's just me!

What time frame does the oil and gas industry have left, another generation perhaps.

Wake me up when progressive forces run election campaigns on jobs. Until then it's just a waste of time, people like Premier Clark know it, and that is why after next May, the BC Liberals will be on their way to a straight run of 20 years in power, just like the right in Alberta have done.

I'm curious when the BC NDP are going to declare bankruptcy because they probably are close to it by now.  

Mr. Magoo Mr. Magoo's picture

Quote:
..i disagree and believe your definitions are to narrow.

I'm actually using the term pretty broadly -- a system in which things of value can be freely exchanged, and in which the "value" of any one thing is determined by the demand for it and the supply of it. 

My barter example simply alluded to this.  Back in the day, nobody would exchange a good cooking pot for a really smooth stone, or for a fruit that grows on all the local trees.  There's simply no demand for smooth stones, and there's an abundant and cheap supply of the fruit.

Quote:
markets today are one of many mechanisms of economic control and part and parcel of capitalism.

Left to their own devices, a market would be a very poor example of "economic control".  Economic control is basically when we try to force markets to do our bidding.

Note that I'm not endorsing totally free, unrestricted, uncontrolled markets here.  Just pointing out that the essence of the market is that no human nor government "controls" it -- supply and demand do.  Anything else that's oppressing anyone is an add-on to that.

Quote:
.what do you think of the rest of my post?

It doesn't read to me as a rejection of the market so much as a call for restrictions on it, or interference in it.

And I'm not saying that has to be a bad thing.  Minimum wage is a good example of "tweaking" the market to make it work better for us.  Socialized medicine is another huge tweak that we tend to think is a good one.  I'm sure there are lots more.

But I don't think you're ever going to escape "the market".  No matter under capitalism, socialism, communism, "juche", or barter, people want what they want (and will exchange more for it) and if it's a rare thing then they'll have to exchange more still for it.

Michael Moriarity Michael Moriarity's picture

Mr. Magoo wrote:

But I don't think you're ever going to escape "the market".  No matter under capitalism, socialism, communism, "juche", or barter, people want what they want (and will exchange more for it) and if it's a rare thing then they'll have to exchange more still for it.

This is true in any society in which the concept of ownership is accepted. Which is admittedly almost all societies. But there have been examples of hunter gatherer societies in which no idea existed that property could be owned. This is important only to show that property is not a necessary part of human nature. Rather, it is part of the culture of all societies so far in which there is a surplus of food over immediate needs. Therefore, in theory there could be a technological society with no scarcity of goods, and no concept of personal property. Getting there will be a challenge, and take some time, but it is not out of the question.

epaulo13 epaulo13's picture

Mr. Magoo wrote:

Quote:
..i disagree and believe your definitions are to narrow.

I'm actually using the term pretty broadly -- a system in which things of value can be freely exchanged, and in which the "value" of any one thing is determined by the demand for it and the supply of it. 

My barter example simply alluded to this.  Back in the day, nobody would exchange a good cooking pot for a really smooth stone, or for a fruit that grows on all the local trees.  There's simply no demand for smooth stones, and there's an abundant and cheap supply of the fruit.

Quote:
markets today are one of many mechanisms of economic control and part and parcel of capitalism.

Left to their own devices, a market would be a very poor example of "economic control".  Economic control is basically when we try to force markets to do our bidding.

Note that I'm not endorsing totally free, unrestricted, uncontrolled markets here.  Just pointing out that the essence of the market is that no human nor government "controls" it -- supply and demand do.  Anything else that's oppressing anyone is an add-on to that.

Quote:
.what do you think of the rest of my post?

It doesn't read to me as a rejection of the market so much as a call for restrictions on it, or interference in it.

And I'm not saying that has to be a bad thing.  Minimum wage is a good example of "tweaking" the market to make it work better for us.  Socialized medicine is another huge tweak that we tend to think is a good one.  I'm sure there are lots more.

But I don't think you're ever going to escape "the market".  No matter under capitalism, socialism, communism, "juche", or barter, people want what they want (and will exchange more for it) and if it's a rare thing then they'll have to exchange more still for it.

..i am talking about stock markets as in the thread title. and that shouldn't be confused with markets in general no more than free trade deals should be confused with trade.

..i am talking about stock markets as instrument of manipulations and control. and this cannot be done by ordinary folks. mind you there was a postal strike that i was involved with way back when that drove down interest rates 2 or 3 points because of the importance of mail to business at the time..but this is not common occurrence. but it is common occurrence when it comes to hedge funds, governments, banks, corporations..powerful forces in other words. in order to force compliance or a falling into line that can be used during elections, political stands, propping up failing corporations and much much more. greece is an example.

..what i suggested by my narrow definition comment is that this extends the power of the owners of production to market forces and so not separate but a kind of hegemony. part and parcel of capitalism. we the people can live without today's stock markets and this is transformable via focus on local economies.
 
..i believe your example of socialized medicine and minimum wage is an example of what i'm saying. stock markets weren't happy by these occurrences. and today i doubt very much that a government here in canada could pass socialized medicine without a fight that no party would be willing to put up. a fight much bigger than what took place back in the 40', 50's and 60's. save qs should they come to power. they i believe could mount such a struggle.

Mr. Magoo Mr. Magoo's picture

Quote:
..i am talking about stock markets as in the thread title. and that shouldn't be confused with markets in general no more than free trade deals should be confused with trade.

Fair enough.

Quote:
we the people can live without today's stock markets and this is transformable via focus on local economies.

I think that -- in the abstract, at least -- the stock markets do provide at least three benefits:

1. they enable people other than Richard Branson or Warren Buffet to start a company.  Stock offerings permit startup companies to obtain necessary funding without the need for sufficient personal wealth, or a bank loan (assuming someone without much collateral could even obtain such a loan).

2. to some degree, they democratize the ownership of companies.  I don't mean to suggest that companies are now owned by everyone equally, or whatever, but the idea that tens of thousands of investors can share in the risks and rewards of some venture still seems to be preferable to one single person getting it all.  And I know that not every investor gets a vote, but lots do, and I think that too is a good thing.

3.  they offer a way to make money with money.  I know that sounds horrible, like something we should fight tooth and nail, but recall that this is the only reason why the pension money that you (or your employer, union or government) is setting aside for your retirement grows in value, rather than shrinking with inflation.  Without a way to grow the value of money, you'd be better off spending your pension contributions right now on something with use value that you might need later. 

But as with everything, the devil is in the details.  So in other words I'm not saying that the subprime mortgage fiasco was a good thing.  But that's the bathwater; stock markets are the baby.

epaulo13 epaulo13's picture

..only it’s not a baby but a monster.

..it’s investment in “successful” corporations that exploit working folks, it’s investment in “successful” corporations that rape the earth and exploit the third world to the hilt. humongous salaries and shares for those at the top of “successful” corporations at the expense of the shareholder. it's investment in "successful" corporations that prosper from free trade deals. canadian pension plans invest in the “successful” arms industry for fuck sake’s.

..the benefits to humanity are minimal compared to the destruction those markets cause.

Mr. Magoo Mr. Magoo's picture

Quote:
..it’s investment in “successful” corporations that exploit working folks, it’s investment in “successful” corporations that rape the earth and exploit the third world to the hilt. humongous salaries and shares for those at the top of “successful” corporations at the expense of the shareholder. it's investment in "successful" corporations that prosper from free trade deals. canadian pension plans invest in the “successful” arms industry for fuck sake’s.

What specific role does the stock market play in any of that?  You're talking about (stereotypically bad) corporations, not the stock market.

epaulo13 epaulo13's picture

Mr. Magoo wrote:

Quote:
..it’s investment in “successful” corporations that exploit working folks, it’s investment in “successful” corporations that rape the earth and exploit the third world to the hilt. humongous salaries and shares for those at the top of “successful” corporations at the expense of the shareholder. it's investment in "successful" corporations that prosper from free trade deals. canadian pension plans invest in the “successful” arms industry for fuck sake’s.

What specific role does the stock market play in any of that?  You're talking about (stereotypically bad) corporations, not the stock market.

..when you take snippets from my posts you leave behind my logic and so sometimes i need to repeat myself.

..capitalism integrates into our economic and political systems via a series of systemic institutions. the stock market is one such institution. it facilitates corporations to do what they do. it is not enough to debate whether this is good or bad but to understand the connections. the connections that lead to why the world is in such a deep global crisis in 2016. why with all the wealth the world produces there is so much poverty and destruction. imho i am pointing to the very centre of what needs to change. and that solutions lie in a different direction.  

NorthReport

Don't worry Dr Day will win his current court case in BC which will bring about the end our healthcare system as we know it  Frown

NorthReport

Sweet! Smile

S&P 500 Index

INDEXSP: .INX - Sep 15, 4:41 PM EDT2,147.26Price increase21.49 (1.01%

Mr. Magoo Mr. Magoo's picture

Quote:
..capitalism integrates into our economic and political systems via a series of systemic institutions. the stock market is one such institution. it facilitates corporations to do what they do. it is not enough to debate whether this is good or bad but to understand the connections. the connections that lead to why the world is in such a deep global crisis in 2016. why with all the wealth the world produces there is so much poverty and destruction. imho i am pointing to the very centre of what needs to change. and that solutions lie in a different direction. 

OK, but you're still not saying why one individual billionaire owning a company is better for us all than 100,000 shareholders owning it.

epaulo13 epaulo13's picture

txs magoo

..what i have said and continue to say is that a better world begins with local control.

NorthReport

Please take a look at the linked graph because the absolute utter bullshit that frequently flies around here boggles the mind. It's often so inaccurate that it makes one think there might be some of Trump the Chump's relatives posting here.

It's hard to keep good investments down, eh! 

https://ca.finance.yahoo.com/echarts?s=%5EGSPC#symbol=%5EGSPC;range=my

NorthReport

How sweet it is when you ignore people with an axe to grind!

https://www.google.com/finance?cid=626307

 

NorthReport

Take a look at the S & P 500 chart which shows amazin' growth.  Smile

World’s Biggest Comeback Breathes Life Into Japan’s Equity Bulls

http://www.bloomberg.com/news/articles/2016-11-20/world-s-biggest-comeba...

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