Stock market speculation?

[Apoco]

Originally Posted by Devanmc

now i feel smart. this is what i get for reading wsj. So far i only have 1 year into business college. the rest in the army.

on another note. it really would affect the economy two fold(atleast). because not only do businesses and people no longer have actually/valuable money to buy things. Commodity prices go up during the collapse. so not only are you poor with a room full of hundreds, you cant buy food or anything else. it has the potential be a horrid domino affect.

Don't feel TOO smart - I'm not an economist and I've only had my Finance & Accounting degrees for a year

Looking back to yesterday - the Dow had it's best day of the year. So what do I know.

We have a better chance of a deal coming through as more American citizens (read: voters) become more concerned. The increasing pressure on politicians to not be seen as the one that is standing in the way makes them become more likely to bend.

TL;DR version - some big things have happened in the last 24 hours. Check back tomorrow.
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[Devanmc]

Originally Posted by Apoco

Don't feel TOO smart - I'm not an economist and I've only had my Finance & Accounting degrees for a year

Looking back to yesterday - the Dow had it's best day of the year. So what do I know.

We have a better chance of a deal coming through as more people become concerned. The increasing pressure on politicians to not be seen as the one that is standing in the way they become more likely to bend. Their minds are on the next election and are very cognizant of how people see them. This could all be a moot point in the coming days as talks continue and deals are reached. The WSJ has an article on Obama's backing of the latest bargain plan - his influence may swing the acceptance of this deal from "snowballs chance in hell" to "likely".

TL;DR version - some big things have happened in the last 24 hours. Check back tomorrow.
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yeah im reading that article right now. its on the front page of todays paper.

[Apoco]

Originally Posted by Apoco

TL;DR version - some big things have happened in the last 24 hours. Check back tomorrow.

I said to check back in today, so time for an update!

There's a quote in the WSJ today that really nails this topic on the head:

"'It's not the bad news, it's not the good news. It's the uncertainty,' said Steve Quirk, senior vice president of the active-trader group at TD Ameritrade. 'As soon as it becomes evident that there could be a deal, then [traders become] unfrozen.'"

The absolute knowledge of a situation is fairly easy to respond to. The lack of knowledge on a situation is crippling.

The markets have posted massive gains today. The S&P is up 1.44% as of 3:35pm eastern. The dow is in the process of its third triple-digit gain this week. Things are looking pretty good at the moment. This is true because there are rumors of Obama and Boehner coming close to a deal on our debt ceiling. The thought of having things ironed out by the end of the month is driving investors to try to buy in now before the market rebounds.

Have no doubt - these market gains are still based upon speculation. Until the names are on the paper and the debt ceiling has been lifted we will be in a constant state of speculation and rumors. (Although to be fair - the stock market is pure speculation all the time)
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