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

[errolanderson]

It's now estimated that 20% of U.S. companies are ZOMBIE companies. These are companies that can't generate enough income to even pay their interest debt, let alone make money. Big name companies that are mentioned as zombies include; Macy's, Boeing and Delta.

Some bankrupt company share values that have rallied ie: Hertz.

[Oliver88]

It's now estimated that 20% of U.S. companies are ZOMBIE companies. These are companies that can't generate enough income to even pay their interest debt, let alone make money. Big name companies that are mentioned as zombies include; Macy's, Boeing and Delta.

Some bankrupt company share values that have rallied ie: Hertz.

What’s the story with Hertz? Us farmers could of taken part in a good auction sale if they were forced to sell out.

[jazz]

https://www.bloomberg.com/news/articles/2020-11-17/america-s-zombie-companies-have-racked-up-1-4-trillion-of-debt America’s Zombie Companies Have Racked Up $1.4 Trillion of Debt

They were once America’s corporate titans. Beloved household names. Case studies in success.

But now, they’re increasingly looking like something else -- zombies. And their numbers are swelling.

From Boeing Co., Carnival Corp. and Delta Air Lines Inc. to Exxon Mobil Corp. and Macy’s Inc., many of the nation’s most iconic companies aren’t earning enough to cover their interest expenses (a key criterion, as most market experts define it, for zombie status).

[farmaholic]

where's errol???


[ATTACH]7099[/ATTACH]

[errolanderson]

Dow Jones breaks 30,000 points today . . . historic highs yet again as the recession /depression deepens.

'Debt-doesn't-matter investor syndrome' as extreme greed now pushing equities . . .

[agstar77]

Was it not greed that pushed the 29 crash?

[errolanderson]

Was it not greed that pushed the 29 crash?

The roarin 20's that ended in-a-crash and the beginning of the Great Depression and Dirty 30's.

Deja vu . . . .

[agstar77]

Board up those high rise windows! Oh wait everyone is working from home.

[GDR]

Supposing the stock market crashed tommorrow how serious would it be to the economy. If the money you have invested is not being circulated it isnt doing a thing anyhow. Might mean you need to work more or later in life if your savings are decreased. That would be better for the economy. Only way I see it having much impact is on future lending capacity as the lenders will have been burnt on margin accounts and raising funds through share issues may be difficult.

[Austrian Economics]

The reason for the stock market run up is fairly simple: interest rates have collapsed back to zero. The saving in interest will be converted into a bid on the asset. At zero percent interest, nearly any business plan and stock valuation can be justified.

It's obviously not sustainable. Capital does not self-replicate effortlessly, which would have to happen for capital to be made available at zero cost.

When will the exuberance come to a halt? My guess is that will be when the debt defaults of all the businesses that have to close due to the lockdowns can no longer be delayed.

[sawfly1]

What do you think about the head BMO
Guy saying we are just at the beginning of
A 10 year bull market?

[errolanderson]

What do you think about the head BMO
Guy saying we are just at the beginning of
A 10 year bull market?

A 10 year bull market already built entirely on central bank manipulation, insane valuations and extreme greed already isn't enough and will be followed by another 10 year bull market. Hummm . . . makes total sense to promote this to investors. Think I'll change my investment strategy on this timely advice.

Guess this banker is not going to say this is the beginning of a 10 year bear market . . . .

[beaverdam]

Are you buying VIX? might be testing 15 by the years end.

https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ

(ya, it's a crappy graph)

[errolanderson]

Are you buying VIX? might be testing 15 by the years end.

https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ

(ya, it's a crappy graph)

The VIX is simply a graph of investor complacency right now. With unemployment benefits running out for millions year end, a hint of real fear is apt to hit markets as economies stall into mid-winter. U.S. GDP for the 4th quarter wouldn't be pretty. And for stimulus (money printing), this is a desperate act of diminishing returns. The lifeboat is getting smaller with every throw . . . .

Personally don't buy into the inflation story as prices are as healthy as demand holds. If demand falters, deflation immediately will take hold. The sell-off is suddenly on . . . .

The VIX is a buy in-my-view as attitudes of complacency are sure to change heading into the new year.

Darn I forgot . . . this is the beginning of another 10-year bull market . . .

[ajl]

A 10 year bull market already built entirely on central bank manipulation, insane valuations and extreme greed already isn't enough and will be followed by another 10 year bull market. Hummm . . . makes total sense to promote this to investors. Think I'll change my investment strategy on this timely advice.

Guess this banker is not going to say this is the beginning of a 10 year bear market . . . .

The real cause of the great depression is not even talked about today. I believe it was central bank money printing goosing the late stages of the business cycle in the later part of the twenties. False economic signals were then provided causing people to buy assets especially stocks with more debt. Does that ever sound familiar. How on earth are economies that have been living on life support for more than a decade now going to provide growth to service this new debt? Have been taking profits from the vaccine hype lately myself.