Dow Approaches 30,0000 points: What’s the point?

[errolanderson]

The U.S. / global recession deepens, yet the Dow Jones is about to surpass a historic, monumental level. What’s the point of a stock market so intensely manipulated and not remotely tied to economic reality? Valuations have been grossly over-inflated now for years and the stretch continues with stock markets totally unable to stand-on-their-own. Welcome zombie companies that shouldn’t exist . . . .

When the rug gets pulled on valuations, who takes the fall?

Let’s try to keep politics to a minimum. Outgoing Mr. T and incoming Mr. B are not key to this rally (IMO). Central banks are the root. But we will all pay in the form of a lost generation (IMO).

[LQQKY]

What is lost generation?

[farmaholic]

The financial destitute?
Zero growth.

[jazz]

Who is the average stockholder errol? Does mom and pop hold a good chunk of the index or someone else? People looking to just survive 6 months dont seem to be likely buyers of shares. And the average household income after taxes leaves little left to invest.

So who is in there? I suspect buy backs are the real culprit and a good chunk of stimulus has found its way back into that cesspool like every crisis.

[Oliver88]

Will the Dow explode to 32,000+ if several vaccines go into production and distribution?

[biglentil]

The U.S. / global recession deepens, yet the Dow Jones is about to surpass a historic, monumental level. What’s the point of a stock market so intensely manipulated and not remotely tied to economic reality? Valuations have been grossly over-inflated now for years and the stretch continues with stock markets totally unable to stand-on-their-own. Welcome zombie companies that shouldn’t exist . . . .

When the rug gets pulled on valuations, who takes the fall?

Let’s try to keep politics to a minimum. Outgoing Mr. T and incoming Mr. B are not key to this rally (IMO). Central banks are the root. But we will all pay in the form of a lost generation (IMO).

Venezuela's stock market making new highs daily but a hamburger only costs a months salary. BTW The only thing Mr.B is incoming to is a jail cell.

[agstar77]

Venezuela's stock market making new highs daily but a hamburger only costs a months salary. BTW The only thing Mr.B is incoming to is a jail cell.

Irrational exuberance . The stock market is also a victim of the pandemic. Probably a year ahead of itself. When reality hits it won't be pretty. It will be 6 mos to a year to get back to some semblance of normal.

[Ache4Acres]

Money is free and as far as I can see everyone spending it faster than ever. Record new car sales in September. Housing prices rising. Shelves almost bare at Rona - can’t keep up with sales

[Oliver88]

Money is free and as far as I can see everyone spending it faster than ever. Record new car sales in September. Housing prices rising. Shelves almost bare at Rona - can’t keep up with sales

Snowmobile dealerships are having trouble keeping anything on lot.

[farmaholic]

Snowmobile dealerships are having trouble keeping anything on lot.

Better drive to the no snow zones for the hottest deals.