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First World Markets Shenanigans
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slick
#181 Posted : Thursday, April 30, 2020 11:39:01 PM
Rank: Member

Joined: 6/1/2017
Posts: 288
eangaga wrote:
Ericsson wrote:
slick wrote:
Ericsson wrote:
USA economy shrinks by 4.8% in Q1


Crazy stuff.US GDP shrinks but stocks rise in today's trading as Fed money printing keeps markets elevated.Q2 GDP will be the disaster to record levels possibly worse than the 1930s Great Depression.Fed keeps Fed funds rate at 0-0.25% and will keep the same pace of QE infinity money printing scheme.


The collapse of stocks is coming,the rally is not sustainable.
Jerome Powell:Unemployment rate likely to surge into double digits


I am not sure what these people know.I am just a common guy and I work for one of the companies in this stock market. Our company I understand. We make a product, it is a useful product. We make sales and make profit. Even during this time we have been working. I say this to say that the valuation at the Stock exchange are not just bubbles...

Have you noticed much of the portfolios have regained most loses from covid?


Well stock market had been in the biggest bubble in US history (bond market also in largest bubble in history too).The best indicator to measure valuations is the Buffet Indicator that takes total market capitalization represented by the broadest Wilshire 5000 index vs GDP.When this ratio hits 100% and above its a bubble and had hit its highest level of just over 150% before the Covid-19 sell off which is utterly ridiculous.I dont think Kenya's NSE mkt cap to GDP has ever gone above 50%



Of course almost all this historical overvaluation is based on the amount the Fed has printed.Since 2008 GFC to pre covid-19,the Fed more than quintupled the base money supply and the stock market represented by S&P 500 has more than quintupled also pre coronavirus.During Covid-19 crisis the Fed just printed more multiple trillions both on balance sheet and especially off balance sheet.Its this money printing (not fundamentals) that has resulted in the gains in the last few weeks.
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Ericsson
#182 Posted : Friday, May 01, 2020 7:20:26 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
slick wrote:
Ericsson wrote:
Stocks sink on economic outlook


Yeap.At least today thus far stocks have faced reality and sunk due to the 3.84 million jobs lost in the last 7 days.In prior weeks where even more than 5 million jobs were being lost,stocks rallied as investors knew the Fed will print more money to buy all asset classes including stocks to offset job losses.

Who knows the day is young.Equities may stage a major comeback as Plunge Protection Team buys equities in mass to prevent a broader sell off.Very volatile market with wild up and down swings


Let's see how stocks will behave next week.
Alot of data will be released,like the suppliers managers index,jobless rate
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#183 Posted : Friday, May 01, 2020 7:25:31 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
slick wrote:
eangaga wrote:
Ericsson wrote:
slick wrote:
Ericsson wrote:
USA economy shrinks by 4.8% in Q1


Crazy stuff.US GDP shrinks but stocks rise in today's trading as Fed money printing keeps markets elevated.Q2 GDP will be the disaster to record levels possibly worse than the 1930s Great Depression.Fed keeps Fed funds rate at 0-0.25% and will keep the same pace of QE infinity money printing scheme.


The collapse of stocks is coming,the rally is not sustainable.
Jerome Powell:Unemployment rate likely to surge into double digits


I am not sure what these people know.I am just a common guy and I work for one of the companies in this stock market. Our company I understand. We make a product, it is a useful product. We make sales and make profit. Even during this time we have been working. I say this to say that the valuation at the Stock exchange are not just bubbles...

Have you noticed much of the portfolios have regained most loses from covid?


Well stock market had been in the biggest bubble in US history (bond market also in largest bubble in history too).The best indicator to measure valuations is the Buffet Indicator that takes total market capitalization represented by the broadest Wilshire 5000 index vs GDP.When this ratio hits 100% and above its a bubble and had hit its highest level of just over 150% before the Covid-19 sell off which is utterly ridiculous.I dont think Kenya's NSE mkt cap to GDP has ever gone above 50%



Of course almost all this historical overvaluation is based on the amount the Fed has printed.Since 2008 GFC to pre covid-19,the Fed more than quintupled the base money supply and the stock market represented by S&P 500 has more than quintupled also pre coronavirus.During Covid-19 crisis the Fed just printed more multiple trillions both on balance sheet and especially off balance sheet.Its this money printing (not fundamentals) that has resulted in the gains in the last few weeks.


Do we have credible figures on Kenya's GDP.Here its what's the reality on the ground
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#184 Posted : Friday, May 01, 2020 4:12:32 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
UK stocks slide as Trump threatens china
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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NewMoney
#185 Posted : Friday, May 01, 2020 10:01:19 PM
Rank: Member

Joined: 3/1/2019
Posts: 170
Location: Nairobi
Shares of Tesla dropped as much as 12% Friday after CEO Elon Musk tweeted that the company's shares are priced "too high."

the guy is going nuts today, also said he's selling 'almost all' of his physical belongings
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slick
#186 Posted : Wednesday, May 06, 2020 9:15:18 AM
Rank: Member

Joined: 6/1/2017
Posts: 288
NewMoney wrote:
Shares of Tesla dropped as much as 12% Friday after CEO Elon Musk tweeted that the company's shares are priced "too high."

the guy is going nuts today, also said he's selling 'almost all' of his physical belongings


HAHA!@NewMoney.I have been posting on the wazua thread Tesla Stock lamenting that Tesla stock is a bubble and way too overvalued and ironically Musk agrees with me.Musk is nuts but it seems its the eccentric behavior of a genius.Musk has always courted controversy with impulsive twitter rants and uninhibited loud mouth talk like during earnings calls.Lets review a few of his mad rants







In 2018,Musk found himself in trouble when he insulted Vernon Unsworth, a Briton who has lived for many years in Thailand by calling him a pedophile



Yet again in 2018,Musk deliberately misled investors and pumped up Tesla stock by his infamous tweet "Funding Secured" and was forced to pay a 20 million fine for stock manipulation to prevent him being completely forced out from Tesla.He was forced out as Chairman but retained his CEO seat once he paid the fine



Musk caused as stir again in 2018 during an earnings call where he put off a reporters questions terming them as bonehead questions.Unbecoming behaviour of a CEO that led to the equity sell off



Elon again rattled feathers when he publicly smoked marijuana on a Joe Rogan podcast which investors felt was uncouth of a CEO also resulted in the stock tanking





The Tesla board has been trying to reign in on Musk public spats by having him seek approval from the board before posting or talking in public but it seems it hasnt stopped the nutty CEO from doing his thing Laughing out loudly Laughing out loudly

No doubt Tesla electrical vehicles are way better than competition but Musk's eccentric nature and the Tesla weak and possibly fraudulent financials make Tesla stock the most heavily shorted and most volatile large cap stock in the US stock market with even billionaire investors either touting the stock will hit 15,000 and other billionaires lamenting the stock will collapse to zero



Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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  | | Edit by user: Wednesday, May 06, 2020 9:17 AM | Reason: Not specified
slick
#187 Posted : Wednesday, May 06, 2020 4:05:09 PM
Rank: Member

Joined: 6/1/2017
Posts: 288
YIKES!!US private sector loses 20.2 million jobs in April.Unprecedented in history.10 years of job gains lost in 1 month

Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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amorphous
#188 Posted : Wednesday, May 06, 2020 4:25:13 PM
Rank: Member

Joined: 5/15/2019
Posts: 687
Location: planet earth
Slick,
my beans are growing very nicely
and it has started raining nyweee so maji fresh fresh clean no brain-destroying fluoride from the municipals tuko nayo
meanwhile mangolofa zinapanda shwiiiii. Now that is what you call a pension! Not those tu-fake 2 dollar bills that await retirees at SSI.
Na chakula ndio hio twannnng GMO free!
I warned cheps 20 years ago that these days were coming but they said huyu tunjamaa tumechizi.
Sasa wanajikaanga kwa mavuta yao.
I feel sad for those mu-buddies I left pursuing the American Nightmare on Wall Street eti Brookes Brothers suits.
Wafi?
The time for them to come home and plant beans is NOW otherwise wamegwisia kugwisia!
Nimesema!
In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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  | | Edit by user: Wednesday, May 06, 2020 4:26 PM | Reason: Not specified
slick
#189 Posted : Wednesday, May 06, 2020 4:37:42 PM
Rank: Member

Joined: 6/1/2017
Posts: 288
slick wrote:
YIKES!!US private sector loses 20.2 million jobs in April.Unprecedented in history.10 years of job gains lost in 1 month




Despite this disastrous figure,stocks open higher.How now??Its all about the Fed.The market expects the Fed to print even more money to buy stocks so lets buy stocks.Well the horrible figure was priced in so its not a market shock
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Ericsson
#190 Posted : Friday, May 08, 2020 4:53:52 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
slick wrote:
slick wrote:
YIKES!!US private sector loses 20.2 million jobs in April.Unprecedented in history.10 years of job gains lost in 1 month



Despite this disastrous figure,stocks open higher.How now??Its all about the Fed.The market expects the Fed to print even more money to buy stocks so lets buy stocks.Well the horrible figure was priced in so its not a market shock


Unemployment rate at 14.7% the highest since records started been kept in 1948
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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  | | Edit by user: Friday, May 08, 2020 4:55 PM | Reason: Not specified
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