The bored at home / COVID19 / Working from home thread

[jimlloyd40]

The Dow and how the health of the economy affects individuals are in no way connected.

Most people do not have substantial investment in the stock market so they do not benefit at all from it ballooning.

Wages are what effects the largest amount of people and most raises do not keep up with inflation.

The Dow is an overall indicator of investors confidence in the economy so it is a good sign when the Dow is up.

 

[GTIfan99]

The Dow is an overall indicator of investors confidence in the economy so it is a good sign when the Dow is up.

It's a sign that the economy has a massive surplus of capital from 4 decades of subsidies and bailouts of large bailouts of corporate America and no productive place to put it.

 

[bentin]

The Dow is an overall indicator of investors confidence in the economy so it is a good sign when the Dow is up.

It's a good sign, but it's also only 30 companies. The only one in the current mix that's truly been effected by CV19 is Boeing (which is also weighted lower than most of the other companies). So 29/30 of the components of the DJI aren't directly indicative of the health of the overall economy. It would be quite possible to be in a heavily declining market but have the DJI rising. The question is, is that where we are now, or are things truly okay?

 

[jimlloyd40]

It's a good sign, but it's also only 30 companies. The only one in the current mix that's truly been effected by CV19 is Boeing (which is also weighted lower than most of the other companies). So 29/30 of the components of the DJI aren't directly indicative of the health of the overall economy. It would be quite possible to be in a heavily declining market but have the DJI rising. The question is, is that where we are now, or are things truly okay?

True but if investors lacked confidence the sell off would cause the Dow to drop. The majority of people in the forum are invested in the stock market. Just not as day traders.

 

[bentin]

True but if investors lacked confidence the sell off would cause the Dow to drop. The majority of people in the forum are invested in the stock market. Just not as day traders.

Right, and the bulk of people are in funds that are managed by investment firms, not individuals. Wanna guess who makes up 20% of the DJI? Oh yeah, investment firms (5 firms, 20% of the weighting). Do you think it's in their interest to support the DJI to convince people that the market is okay, especially since it helps them in turn? 2008 didn't show any softening before the wheels literally fell off, largely because the people who misread the tea leaves were also driving the ship.

 

[bentin]

And before you think I'm all doom and gloom about this, I'm in a DJI index fund with downside protection. So I have some faith in the system, but I also think that it's a poorly structured system when you have the same investors who control the majority of business 401k's and individual savings also on the primary index that determines market health. There's obvious inherent risk in the current structure that remains unchanged from the 2008 collapse. The support system of all of this, large banks, remain comically overextended and exposed through poorly designed loan packages, here's a fun little read on those things:
https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/

 

[GTIfan99]

And before you think I'm all doom and gloom about this, I'm in a DJI index fund with downside protection. So I have some faith in the system, but I also think that it's a poorly structured system when you have the same investors who control the majority of business 401k's and individual savings also on the primary index that determines market health. There's obvious inherent risk in the current structure that remains unchanged from the 2008 collapse. The support system of all of this, large banks, remain comically overextended and exposed through poorly designed loan packages, here's a fun little read on those things:
https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/

I have faith that the government will AGAIN pump trillions into propping up the stock market, causing more inequality and making another massive crash inevitable. Rinse and repeat until people take to the streets and burn it down.

 

[jimlloyd40]

It's a sign that the economy has a massive surplus of capital from 4 decades of subsidies and bailouts of large bailouts of corporate America and no productive place to put it.

Completely disagree and I'll just leave it at that.

 

[bentin]

I have faith that the government will AGAIN pump trillions into propping up the stock market, causing more inequality and making another massive crash inevitable. Rinse and repeat until people take to the streets and burn it down.

Would be even cooler if each time we deficit spent, it wasn't just coming from China who owns and indexes our currency. Amusing that we try to play tough with them in the news, but we're effectively fully controlled by them financially. What's a few more trillion?

 

[sterkrazzy]

Got another one!

 

[brat_burner]

Got another one!

Almost time to go surfing!!

 

[Phur]

I honestly had no idea how ignorant much of this country is.

I am acutely aware. I work in a factory, surrounded by them. Only two other people other than myself wear a mask. Most do not try to socially distance even.

 

[Will_]

The mask situation is wild. I live in the Bay Area and people will shout at you for not wearing a mask. Meanwhile my friend in the Central Valley said he was getting weird looks from everyone because he WAS wearing a mask at the gym, lol. I just don't understand why people think they are being so patriotic by not wearing a mask, its beyond me.

 

[toothofwar]

horrible movie......worst movie Sylvester has ever been in.

How dare you!!!!

 

[GTIfan99]

Would be even cooler if each time we deficit spent, it wasn't just coming from China who owns and indexes our currency. Amusing that we try to play tough with them in the news, but we're effectively fully controlled by them financially. What's a few more trillion?

That's populist nonsense. China holds 5% of US debt. And it isn't my opinion that our economy is over capitalized, it's just the reality.