Another Grim Milestone: "The Dow Jones industrial average swept past 12,000 for the first time Wednesday, extending its march into record territory as investors grow increasingly optimistic about corporate earnings and the economy.
Printable View
Another Grim Milestone: "The Dow Jones industrial average swept past 12,000 for the first time Wednesday, extending its march into record territory as investors grow increasingly optimistic about corporate earnings and the economy.
^ Exactly.
Why is the Dow - which is composed of only 30 Blue Chip U.S. companies hitting 12,000.
Because corporate profits are up.
In part because, workers' wages have declined for 6 years.
You need to look at the Total Stock Market Index.
There are many, many factors in the U.S. economy.
If you had $1000 invested in the DJIA at the start of Bush's term how much would it be worth now? $1001?
yeah, great, isn't it ? :)
Actually $1000 invested in 2000 might be worth less now due to inflation ;)
Yep...the US economy is in terrible shape.
Unemployment at record lows, inflation yet to raise its ugly head...
Unemployment is not at record lows. There are 1 million more people unemployed today, right now, than there were when Bush took office.
It's pathetic how willing people are to believe facts and figures without actually looking at how they are derived.
Do you even understand the mechanism behind how the Dow's average is calculated? Can you tell me this week's Dow divisor?
Quote:
Originally Posted by surasak
And the ones that are employed are making less money due to cost of living increases and the fact that most of the new jobs created do not pay enough to pay your monthly bills !!!
Jobs being outsourced overseas !!!
Illegal immigrants taking American jobs while living 15 people in a 2 bedroom house, then sending the money they earn out of the country and out of the American economy !!
But corporations are making record profits and paying the top executives outrageous salaries and bonus's. while the same corporations refuse to pay the employees a LIVABLE WAGE !!!
You need to look at the big picture.Quote:
Originally Posted by Boon Mee
I don't think the U.S. economy is in "terrible" shape. But it definately is not good, either.
Health care costs, Medicare, education costs, fixed expenses and per capital debt ratios, deficits and current account deficits.
it's by and large institutional money.....the individual investor hasn't re-entered the market.Quote:
Originally Posted by Boon Mee
Look at the S&P 500 which is a better bellweather of the economy (the Dow really hasn't been taken seriously since 1999 when it stopped being a benchmark of any real value since it doesn't measure value of companies in the index). It still is down overall under Bush's tenure.