Tuesday, March 5, 2013
Record Breaker
In this article we can see how Dow has broken its record high and is still going up. Yet the expectation was for stocks to fall with the sequester put into place. Why do you think Dow is on the rise? Also in the article, analysts say that the stock market has become a bull market. Do you agree that the stock market is a bull instead of a bear? Why?
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First of all, I didn't know the benchmark bottom in March 2009 was so drastically different from the high just set. I don't understand the "regret" emotion, obviously being scared was a natural emotion at such a time. This article is positive, but I do not understand the evaluation between a bull and a bear.
ReplyDeleteI think the Dow will start to decrease as time goes on. Its weird the dow is on the rise with everything else going on in the world with the Euro and the Asian stocks plummeting. This is just something that is happening for a short period of time. The sequester will have a big impact in the near future on the Dow Jones in my opinion.
ReplyDeleteI would agree that the market is a bull market right now because of the current investor confidence that has risen. Also, the expectation was that the sequester would come and go and not have large-scale effects on the stock market. Analysts simply brushed off the sequester which also reinforces the fact that this is a bull market.
ReplyDeleteThis post is interesting relating to the high in the stock market but lack of economic prospects:
ReplyDeletehttp://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/06/the-stock-market-is-back-but-the-economy-isnt-blame-congress/
"The Dow may be back to its old highs, but it sure doesn’t feel like it. There is nearly a $1 trillion gap between what the U.S. economy is capable of producing and what it’s actually producing, the unemployment rate is hovering around 8 percent, and the average earnings in the private sector, adjusted for inflation, have barely budged for five years."
"There is often a disconnect between financial markets and the economy as experienced by ordinary American, but it has not in memory been as large as it is now. And the reasons this time around are rooted in Washington."