Comments on: OK, maybe not FAKE rallies per se … http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/ Personal finance, commentary, and spending less the easy way Sat, 21 Nov 2009 01:23:30 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: Lily http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/comment-page-1/#comment-130511 Lily Wed, 19 Mar 2008 21:10:50 +0000 http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/#comment-130511 I observed in my previous comment that the economy and the stock market are not synonymous. It actually really bothers me that the two are so disconnected! I have difficulty wrapping my head around the idea that we could be in a recession but the market will still rally. Or we could be doing much better than we think we are, but the market will still fall a lot. Today stocks fell again. Has anything really changed since yesterday? The only thing I can think of is investor sentiment. When the market rallied yesterday, economic conditions didn't improve. Now that the market is down again, economic conditions still haven't reversed. That's why I tend to ignore the market on a day-to-day basis. These wild gyrations are, for the most part, meaningless. Silly traders, Trix are for kids! I observed in my previous comment that the economy and the stock market are not synonymous. It actually really bothers me that the two are so disconnected! I have difficulty wrapping my head around the idea that we could be in a recession but the market will still rally. Or we could be doing much better than we think we are, but the market will still fall a lot.

Today stocks fell again. Has anything really changed since yesterday? The only thing I can think of is investor sentiment. When the market rallied yesterday, economic conditions didn’t improve. Now that the market is down again, economic conditions still haven’t reversed.

That’s why I tend to ignore the market on a day-to-day basis. These wild gyrations are, for the most part, meaningless.

Silly traders, Trix are for kids!

]]> By: Jesse http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/comment-page-1/#comment-130502 Jesse Wed, 19 Mar 2008 18:36:28 +0000 http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/#comment-130502 You are right, "fake" isnt the right term, but its most definitely artificial. You are right, “fake” isnt the right term, but its most definitely artificial.

]]> By: Heidi http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/comment-page-1/#comment-130484 Heidi Wed, 19 Mar 2008 14:44:52 +0000 http://www.mightybargainhunter.com/2008/03/19/ok-maybe-not-fake-rallies-per-se/#comment-130484 I second your thought - this rate cut is just a band-aid that will tear off soon enough. The next Bear Stearns is just around the bend. What's the Fed gonna do then? At my bank, we just deposit rates 50 - 100 basis points, but we left our fixed loan rates alone and we raised our criteria on purchased pools. What does that tell you? Bank's are not passing the rate "savings" onto the consumers that really need to refinance debt. I second your thought – this rate cut is just a band-aid that will tear off soon enough. The next Bear Stearns is just around the bend. What’s the Fed gonna do then?

At my bank, we just deposit rates 50 – 100 basis points, but we left our fixed loan rates alone and we raised our criteria on purchased pools. What does that tell you? Bank’s are not passing the rate “savings” onto the consumers that really need to refinance debt.

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