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Dow Closes Over 14,000 - Highest Close Since October 2007
While the close was not exactly bullish (just look at HY credit, volatility, and homebuilders), the only thing that matters is - Dow 14,000. The highest close since 10/12/2007. Since that time, 10Y Treasury yields have dropped from 4.68% to today's 2.03% - the first close above 2.00% since early April 2012. Risk-assets spent the day catching up to equity's early lead and recoupled into the close. Some modest after-hours weakness to the shine off an otherwise exuberant day as Treasuries snapped lower in yield on NFP and spent the rest of the day surging higher in yield to end the week +6 to 8bps. Silver gained 2% on the week - beating stocks, as the USD dropped 0.7% (almost equal to Gold's gain). With stocks unch from Oct 07, perhaps it is worth reflecting on Gas prices being up 58% since then... but that would spoil the party...
A little context for today's exuberance - cross-asset class performance from 10/12/2007...Bonds +28.5%, Stocks Unch.
Since October 2007...'wealth' has changed...
Gold
Gasoline...
and the rest...
and today...
and the sectors...(homebuilders ugly but Utes winning?)
Now that was a crazy day in Treasuries!!!
Stocks led the risk-off move as the rest of risk-assets in general did not play along initially - but mysteriously perfectly recoupled into the close...
Gold and Silver had a good week - outperforming stocks - as the USD lost 0.7%...
Source: Bloomberg and Capital Context
Capital Context (@CapitalContext) LLC is the leader in integrating credit-market data to actively trade equity markets. From our world-renowned intraday 'CONTEXT' and 'SPY Arb' models to the daily long-short equity portfolio, sector-weight updates and tactical asset-allocation strategies, Capital Context offers sophisticated hedge-fund strategies to the active trading community.
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Don't worry about inflation
Whenever one talks about "inflation," it should be noted that the fed/gov has a leg up on the problem. They call it the "Hedonic Quality Adjustment." The use of "hedonism" is really creative. So when a new computer is more powerful -and- more expensive than the previous version, they will say it actually costs less because it makes you more productive and presumably more hedonistic.
So the bottom line is that even though prices are going UP, the fed will tell you that consumer prices are going DOWN. So those big expensive "smart" phones are actually making inflation go DOWN!!!
http://www.bls.gov/cpi/cpihqaitem.htm
A nice little book that talks about this is;
GREENSPAN'S BUBBLES: THE AGE OF IGNORANCE AT THE FEDERAL RESERVE
http://www.amazon.com/GREENSPANS-BUBBLES-IGNORANCE-FEDERAL-RESERVE/dp/00...
Okay what next ?
Bernanke has achieved a number after so much QE and waste.
Next, Ben Diocletian Bernanke sets a price ceilint to solve that pesky inflation problem.
Also -- I like the way they usually exclude fuel prices from their calculations, because they are considered "transitory."
All I know is that if fuel prices to go UP, I'll be a lot more "stationary."
Everything is transitory because when we all die we wont need to eat, thats why food prices are transitory, people "transit" through life and go to heaven where Ben Bernanke gives then Monopoly Money to buy stocks with and gamble / party.
Whoa! thanks for the laugh. that was funny.
Dow 14000 & World War Three?
http://thespiritoftruth.blogspot.com/2013/02/dow-14000-world-war-three.h...
Say What Again,
You look like George Obama.
How goes life in your hut?
Has Barry sent you any coin?
"George Obama?"
Who dat?
I *WAS* thinkin bout moving into dat big house in D.C.
That's the wonderful thing about economic measurement. I could say I have a 14 inch penis, but you're just measuring it the wrong way.
Like in mm?
Sorry, dp
Can your girlfriend be heard all through the neighborhood?
That's all that matters!
If she could, it would probably wake my wife.
The DOW will climb to 30,000.
Why not?
The whole fucking thing is rigged anyway.
http://angrysinner.blogspot.kr/2013/02/yesterday-i-used-my-phillips-air-fryer.html
If it does that it will still be down when measured against gold since 2007.
Greedscam only had to cut rates to near zero.
the bernank had to do bailouts and qe infinity
the next time they will????
the next time they will???? Just imagine what pale green glass stretching as far as the eye can see
Kill us all. Good answer!
so the answer is War.....yep.
"Pray."
They will Jay Wilson it and Double it.
Employment stagnant, wages falling, growth contracting, institutions failing....... and markets booming.
I give up.
http://upload.wikimedia.org/wikipedia/commons/7/73/Roflcopter.gif
Just loaded up on Herbalies, Netfux and COCAINE! Me and Menendez are jetting down to drop loads on 16 yr. old hookers in the DR!
Here is the Peter Schiff on cnbs mentioned earlier:
Dow Hits Milestone, What Next?
http://video.cnbc.com/gallery/?play=1&video=3000143993
Now that Jobs is dead will Apple please settle their dispute wit Adobe? Fuck I hate when I can only watch half of what's on the web!
they settled. view this [pdf] [/just kidding]
edit: why settle? they could buy adobe for a measly $20B.
And when will ORCL fix the F*~k$ng JAVA bug?
Wait -- It just dawned on me why ORCL isn't fixing that bug! It helps their biggest customer monitor the web.
Java and their thrice daily updates. I hate those bastidges. They are the biggest security breach on the interwebz.
Steve may be dead, but Apple only has Steve's entitled children following. Like you were saying, they stay DENIED. How cool is that?
Thanks for that, Schiff is the bomb...
Folks that ignore history are always enamored with how shiny 'new' objects are.
History is pisstory..
Duh!
/6th graders and Fed board members
The youth in Europe would give their nuts to be an American youth right now. Try 52% in Greece! Crazy times we're living through. Glad I got that vasectomy.
Charts over 14,000, bitchez!
Record highs coming by months-end.
That's about all the little people will care.
FUCK YOU NADLER!!!
http://www.kitco.com/reports/KitcoNews20130201.html
Markets will Rally Forever
Markets will crash
Which one is it more likely to be?
Someone remind me what happened last time we were here... o yea right didn't a financial disaster happen or something? my memmory is short, but I remember the markets were all high as a kite and oblivious and then KASPLAT "everyone print money so we don't go to jail, JOHNSON WHERE THE FUCK IS JOHNSON (two sec. later they hear Johnson hit the curb at terminal velocity).
Yea... not gona end-well.
DOW <----26,000 by 1/1/14
DOW <----8,500 by 1/1/14
8,500? i know we are supposed to stay optimistic but really man?
I was gonna say 1500, but I thought I should account for Bernank's toilet paper printing
I'm really waiting for DOW/Gold 1:1 and DOW/Silver 1:30
I can see it now...a phony economic system runs up (to say nothing of all the newly "printed" fiat currency) the stock markets...people (maybe) begin to jump back into the market...people believe all is well...people (nominally) get rich...big gum'ment likes capital gains taxes. There are way too many bozos on this bus.
congratulations Bernanke you fucking shit eating bank fuck. Die painfully you fucking walking economic piece of retarded shit.
tell us how you really feel
He must not be feeling well today...that's rather mellow!
Big Oil and its in refining...says it all. All the while they junked Euro refining.
ExxonMobil affiche des bénéfices mirobolants pour 2012 grâce au raffinage
45 bliion AT; 480 B Sales. Whats new pussy cat!
"Zimbabwe's stock market was the best performer this decade - but your entire portfolio now buys you 3 eggs"
Lol the bankers are lucky the public can't tell the difference between "nominal growth" and "actual growth".
Music to distract passengers as the Titanic goes down.
Dow - Jones 14000 = SIGNAL OF THE DECEASING VALUE OF THE DOLLAR!!
Yes I said deceasing - they are killing the value of the dollar, just like they said was their plan all along.
Value and price are not the same. The price of an item is the translation of the value of an item into a mutually acceptable quantity of some other item that both parties feel is an equal or equitable trade. This is barter. We use paper money to barter. Sellers set a value for their goods based on their belief on the value on paper currency and name the price in terms of dollars, yen, euro, etc.
If the number or paper bills required to buy the same quantity of an item within a pool of a relatively fixed amount/supply of that item class (e.g. oil, gas, bread, stocks, precious metals) increases noticeably in a relatively short amount of time, BE ON GUARD.
Also:
If your gov't (US Congress) eliminates the debt ceiling...
If your Central Bank (the FED) is flooding the market with new dollars from debt (thin air)
If your stock market (Dow Jones) shoots way up for no good reason...
If taxes on your population have risen dramatically....
If your military is practicing urban warfare on home soil...
If your gov't has purchased 1.6 billion hollow point bullets...
If your gov't ordered 7000 fully automatic weapons...
If your gov't just built a massive internet screening facility...
If your gov't has 25,000 drones ready for domestic deployment...
If your gov't is building a surveillance network with facial recognition...
If your gov't is infringing on rights that the law says they cannot infringe...
If your leaders are invading foreign countries to exploit resources...
If your leaders are not following the law or making more un-Constitutional law...
If your leaders allow a law to be broken by some while prosecuting others...
If your leaders can kill it's own citizens with impunity...
If your gov't has a history of genocide or mass interment...
If your local police forces are getting military grade hardware...
If your gov't does not provide details or intentionally covers up scandals...
If your gov't is complicit with the media in spinning stories to hide the truth...
If your gov't seems to ignore it's people and give favor to big business...
Then it might be time to turn off the TV, get off the couch and get ready for hard times.
Best post of the year...
Dow 14,000. Interests rates on bonds half of what they were the last time we hit this marker and the financial nitwits are in celebration.
And now another message from the second most interesting man in the world:
"I don't always buy silver, but when I do, I prefer silver eagles."
"Stay patient my friends."
PONZI! PONZI! PONZI!
I feel as though I am trapped in the plot line of a dystopian novel.
Moar QE. DOW 15,000. The stake is now through the heart of the real economy. Time to urinate on the corpse.
F
O
R
W
A
R
D
PS: Fuck you Timmy.
Who the fuck actually has money to invest in the stock market these days? The vast (VAST!) majority of us no longer give a shit if it is 14,000 or 28,000. What the fuck do you think this is? 1999? The only ones "investing" in the markets are big ballers and pension funds. The rest of us who, when we have enough cash to invest - are buying real, physical things. Something you can hold in your hand. Fuck digital. Fuck paper. Fuck you Wall Street.
Well said, good observation... Definately describes my situation...
15,000 is just right around the corner...
"What the Wise man does first, the Fool does last". Is buying a VIX Call a good idea right now? Worried that my "irrational exuberance" might make me want to get in on the action.