Just got the email alert.
http://money.cnn.com/2007/07/17/markets/markets_1015/index.htm?postversion=2007071710
NASDAQ and S&P are up big this year too.
But the economy is in the shitter, or at least that’s what the Dems keep telling me. :cjerk:
c
o
l
l
a
p
s
e
i
s
n
e
a
r
I knew something was going on. I’m completely ignorant to investing, but my 401k has grown over 15% so far this year. Which I think is good, but again the whole ignorance thing. :lol:
But seriously, 14k? Wasn’t it just a couple of years ago that the big news was it hitting 5 figga’s?
Nice.
Now someone start a correction poll.
When will it happen?
Waiting for input from the “financial” guys.
the q’s are rocking… but they will have to fall
[quote=“BikerFry,post:3,topic:32493"”]
I knew something was going on. I’m completely ignorant to investing, but my 401k has grown over 15% so far this year.
[/quote]
yeah, no shit… my 401K has skyrocketed this year (though I try not to pay too much attention to it… I like letting it just do it’s thing as it keeps the temptation of blowing some of it on a supercharger at bay :P)
[quote=“JayS”"]
But the economy is in the shitter, or at least that’s what the Dems keep telling me. :cjerk:
[/quote]
No question. Canadians are buying US dollars for 1.02.
[quote=“Inn-Tune,post:7,topic:32493"”]
No question. Canadians are buying US dollars for 1.02.
[/quote]
Speaking of that, how long before we share the same currency like Europe?:ohnoes:
[quote=“Inn-Tune,post:7,topic:32493"”]
No question. Canadians are buying US dollars for 1.02.
[/quote]
You’re taking far too simplistic a view. Strong is not always good, weak is not always bad.
http://www.chicagofed.org/consumer_information/strong_dollar_weak_dollar.cfm
Weakening Dollar
Advantages
U.S. firms find it easier to sell goods in foreign markets.
U.S. firms find less competitive pressure to keep prices low.
More foreign tourists can afford to visit the U.S.
U.S. capital markets become more attractive to foreign investors.Disadvantages
Consumers face higher prices on foreign products/services.
Higher prices on foreign products contribute to higher cost-of-living.
U.S. consumers find traveling abroad more costly.
Harder for U.S. firms and investors to expand into foreign markets.
Hmm, sounds like a weak dollar is just what this country needs. Harder for Walmart to buy everything from China, and easier for US companies to sell goods and services internationally.
[quote=“JayS,post:9,topic:32493"”]
You’re taking far too simplistic a view. Strong is not always good, weak is not always bad.
http://www.chicagofed.org/consumer_information/strong_dollar_weak_dollar.cfm
[/list]Hmm, sounds like a weak dollar is just what this country needs. Harder for Walmart to buy everything from China, and easier for US companies to sell goods and services internationally.
[/quote]
Great link and post. I am sure if you were to look at a long term graph of currency value for a nation as compared to others (obviously pending governmental stability, etc) that it will probably fluctuate within a certain range over a lengthy period say 2 - 5 years or so but not deviate from that range.
^ they actually just did a small story about that on the local news. EDIT: to jays’s post
Canadians are flocking here to shop with the dollar value being lower than it was 5+ years ago. Spending 8% > paying their 17(I think)% sales tax.
Seems like a good thing for the local economy atleast
China has always kept their Yuan waaaaaay under valued so they could flood the world with exports.
The US just looks the other way and lets it happen.
Once in a while they (the US) grumbles about it to get it raised but like I said it is waaaaay under valued even still.
It gets so complicated the more you study it.
China locks their currency to the value of the US dollar, knowing that we’re their number one customer. If their dollar went up while ours was going down, we’d stop buying. The problem with this is they have to float a huge amount of US currency to do it, and if the dollar falls too much they may start dumping US dollars on the market, which would cause our US dollar to really crash.
That wouldn’t be good for anyone.
Seriously, unless you’re official job title looks something along the lines of “International Investment _______”, you probably don’t have the time to devote to understanding all of it. I’m a software engineer, and I try to read enough that the media can’t fool me into believing their super simplified, watered down for the American Idol viewer, spin of economics. But I still listen to my financial advisor and take his advice very seriously, then use his views as a basis for my research and enforcing my views.
[quote=“JayS,post:13,topic:32493"”]
It gets so complicated the more you study it.
China locks their currency to the value of the US dollar, knowing that we’re their number one customer. If their dollar went up while ours was going down, we’d stop buying. The problem with this is they have to float a huge amount of US currency to do it, and if the dollar falls too much they may start dumping US dollars on the market, which would cause our US dollar to really crash.
That wouldn’t be good for anyone.
Seriously, unless you’re official job title looks something along the lines of “International Investment _______”, you probably don’t have the time to devote to understanding all of it. I’m a software engineer, and I try to read enough that the media can’t fool me into believing their super simplified, watered down for the American Idol viewer, spin of economics. But I still listen to my financial advisor and take his advice very seriously, then use his views as a basis for my research and enforcing my views.
[/quote]
Well, that pretty much is my job title and you make a good point there. What’s really driving the currencies right now is central bank interest rates. Basically its becoming a better deal to invest in places other than the US. After so many years of so much foreign cash flowing into this country if that ever stopped or even slowed down we would be in for a big hurtin. Also, CAD is seeing alot of strength bc of the commodities market (which they export a lot of).
[quote=“Avatar,post:14,topic:32493"”]
Well, that pretty much is my job title and you make a good point there.
[/quote]
Ok, so getting back to the original point…
Is our economy in good shape? I’m tired of reading and really need to get some work done. 
Our economy seems to be in okay shape… The housing market is still shit. But, employment numbers keep coming in good as well as the stock market being strong (obviouslly). How long this can keep up without a major “correction” or worse? Who knows… Look for some volitility in the upcoming year as the presidential election shakes the market a bit or if (God forbid) we have another terrorist attack.
[quote=“JayS,post:15,topic:32493"”]
Ok, so getting back to the original point…
Is our economy in good shape? I’m tired of reading and really need to get some work done.
[/quote]
Depends on who you are.
If you like to travel internationally (me) or spend money outside the country, the economy sucks.
If you want an entry-level or service job, the economy is great.
If you’re a professional in most fields, trying to make between 50 and 150k, the economy sucks.
If you hold most of your assets in stocks and bonds or commodities, the economy is great.
If you hold a lot of real estate, especially with floating-rate mortgages, the economy sucks.
etc.
but basically employment numbers look good, but a lot of the quality of jobs isnt there.
[quote=“Joe,post:17,topic:32493"”]
Depends on who you are.
If you’re a professional in most fields, trying to make between 50 and 150k, the economy sucks.
[/quote]
You have anything to back that up? That’s where I’m at, and even in WNY none of my professional friends are having issues finding employment.
[quote=“Joe,post:17,topic:32493"”]
If you hold a lot of real estate, especially with floating-rate mortgages, the economy sucks.
[/quote]
No offence, but if this describes you the economy is always going to seem like it sucks because you’re retarded. If you’re going to have a floating rate mortgage, you better have the capital to pay off your loan should the rate rise. Floating rate is for people who have big money but don’t feel like tieing it up while rates are low and they can use the money to make more money elsewhere. It is not for people to buy more than they can actually afford, rolling the dice hoping rates don’t go up before they can cash out. I’m afraid there are a lot of the latter, but their poor planning does qualify as “bad economy” to me. Unless of course there are enough of these idiots that they actually cause the housing market to collapse.
haha, no offense taken. It doesnt describe me, i dont have any debt other than a consolidated student loan at 2%. In fact, I’m pretty sure if it was me, then I should probably drop out of grad school in finance because I obviously wasn’t cut out for it.
No time to do research right now, but im sure the right google would give you what you need. Basically, tons of companies are announcing massive layoffs. These raise the stock prices, but who gets cut? the 50k-150k range. They then get replaced with tons of temp workers. Temp agencies are the biggest they’ve ever been. They are getting the smallest raises of everyone, since even the lower-class has had a ground-up effect from the minimum wage. With all of the oil-related inflation, real wages for a lot of the middle-class are stagnant or going down. Benefits are being cut everywhere, and the retirement plans and health insurance are getting worse by the month. Plus, a ton of their jobs are being offshored, with Indians and Asians with grad degrees willing to work for relatively peanuts.
Anyone else think that the DOW is just really inflated, and inflation is on the rise in this country.