Dow and S&P closed at record highs today

[ua_guy]

Mark your calendars, the economy sucks and is sailing off a cliff. Again.

The Dow and S&P closed at record highs today on easing inflation and anticipated rate cuts.

https://amp.cnn.com/cnn/2024/07/16/business/dow-surges-over-600-points-as-investors-bet-on-september-rate-cut

Might as well get in line for that loaf of bread.

[james.hendrickson]

Sooo...not everyone wants to say it, but this mini rally could also be due to the increased chances of a Trump victory in the Presidential elections.

Trump is pro-big business, so wall street is likely happy about the prospect of future low taxes and increased earnings.

[disneysteve]

I'll take this "bad" economy for as long as we can. Record high stock market, retail sales up, inflation down, historically low unemployment, an ongoing boom in real estate, interest rates poised to start dropping later this year. What more do people want?

[disneysteve]

Sooo...not everyone wants to say it, but this mini rally could also be due to the increased chances of a Trump victory in the Presidential elections.

Trump is pro-big business, so wall street is likely happy about the prospect of future low taxes and increased earnings.

Let's keep politics out of any discussions here please.

[ua_guy]

Moderator on moderator moderation. I actually LOL’d.

Well, the market closed up at record highs before this, but my accounts are here for an even higher record nonetheless.

[myrdale]

Mark your calendars, the economy sucks and is sailing off a cliff. Again.

The Dow and S&P closed at record highs today on easing inflation and anticipated rate cuts.

https://amp.cnn.com/cnn/2024/07/16/b...ember-rate-cut

Might as well get in line for that loaf of bread.

Inflation is inflation. Housing, Energy, Food, All Consumer Goods, Everything.. When the dollar looses value, everything goes up in price.

[myrdale]

Let's keep politics out of any discussions here please.

Driving down the interstate, occasionally you run into traffic, it slows down, and almost a stand still. Five miles and ten minutes later you find out the cause was a guy changing a tire on the opposite side of median. Traffic isn't a single person, but tens of thousands.

The economy is similar. News, or even the prospect of news can have huge effects on the behavior of companies and banks and individuals. For business, do we spend $10M in capital and hire 20 more people, or do we sit on it for another 4 years? For a house hold, do we have another kid, or buy a new car, or go on vacation. All of these individual decisions across a single house hold are meaning less but across the country all add up.

James's comments are just speculation on the reaction of markets to the prospect of news.

The problems I see in the economy right now are bipartisan issues that have been going on across multiple administrations for decades. Regardless of who wins, the national debt will continue to grow exponentially and inflation will continue.

[disneysteve]

Regardless of who wins, the national debt will continue to grow exponentially and inflation will continue.

Wow, something I actually agree with you on. Yes, the national debt continues to grow and always has regardless of which party was in the White House. Sometimes it grows faster, as it did during the previous administration. Sometimes it grows slower, like it has under the current administration so far. But to be clear, I'm not suggesting this is party-specific because it isn't.

And yes, inflation is a constant. Over time, prices rise. And that's not just a US issue; it's true throughout the world. The rate of inflation varies over time but with rare exception, inflation is always occurring.

[myrdale]

Wow, something I actually agree with you on.

...

[ua_guy]

Inflation is inflation. Housing, Energy, Food, All Consumer Goods, Everything.. When the dollar looses value, everything goes up in price.

The stock market has definitely outpaced inflation. If you're saying it closed at a record high because of inflation, that's absurd.

[myrdale]

If you're saying it closed at a record high because of inflation, that's absurd.

OK.

[disneysteve]

Personal attacks against one another will be deleted. It's fine to disagree. It's not okay to start calling people names.

[Fishindude77]

Let's share our political views while carefully veiling it using language that doesn't sound political

[srblanco7]

S&P 500 closed up for the fourth straight month.

WSJ also noted that consumer sentiment picked up in August - buoyed (to an extent) by positive stock market returns, pending interest rate cut, drop in mortgage rates, and lower gasoline prices. Consumer spending is up 5.3% from a year earlier (or up 2.7% net of inflation which registered at 2.5%). Based on the strength of consumer spending, the Commerce Dept has increased it's Q2 GDP growth and is increasing its Q3 target.

Nevertheless, consumer sentiment remains below pre-pandemic levels.

[ua_guy]

And we're in another panic-driven selloff today.