Nasdaq hits all time high.

[RamblingMad]

What I don't understand is who is buying all of the bonds in order to turn rates negative. Isn't it obvious that the US will never be able to repay the $25 trillion in debt without devaluing the US Dollar?

The USD is a reserve currency. This has important implications. The options are to: keep expanding the Fed balance sheet, let inflation go up, or raise taxes. The most likely scenario is that we see future tax increases.

 

[Lizgistix]

Did you get in on that low? I am so happy - got 10 shares of DIS at 90!! Woo hoo!

Unfortunately, no. I had some issues getting an account set up and funds transferred over. I didn't buy in until it was around 117.

 

[MillauFr]

The USD is a reserve currency. This has important implications. The options are to: keep expanding the Fed balance sheet, let inflation go up, or raise taxes. The most likely scenario is that we see future tax increases.

Any politician that raises taxes will find themselves on the losing end next election. Even if they did increasing taxes will barely make a dent in the $25 trillion debt. In our current low interest rate environment, I think they will just keep kicking the can down the road.

 

[RamblingMad]

Any politician that raises taxes will find themselves on the losing end next election. Even if they did increasing taxes will barely make a dent in the $25 trillion debt. In our current low interest rate environment, I think they will just keep kicking the can down the road.

Local taxes will have to go up to offset the lower collections of sales tax revenue.

What is likely to happen is that the yield curve will continue to steepen. I’m curious what the Fed is going to do today.

 

[TLSnell1981]

If the professionals were good, they’d be paid based on performance, not some percentage of assets or fees.

We communicate on a regular basis. I'm happy.

 

[JimMIA]

What I don't understand is who is buying all of the bonds in order to turn rates negative. Isn't it obvious that the US will never be able to repay the $25 trillion in debt without devaluing the US Dollar?

The Fed. They're even buying junk bonds.

 

[JimMIA]

Local taxes will have to go up to offset the lower collections of sales tax revenue.

What is likely to happen is that the yield curve will continue to steepen. I’m curious what the Fed is going to do today.

Fed is projecting no rate increases through 2022.
https://www.cnbc.com/2020/06/10/fed-meeting-decision-interest-rates.html
And MSFT is now more than $7 higher that it's all-time record price, up $8 (4.25%) for the day so far.

 

[MillauFr]

The Fed. They're even buying junk bonds.

With printed money. It is all just fake. The gold standard is a distant memory.

 

[godisney14]

The Fed. They're even buying junk bonds.

Yup.

And with today’s remarks, the printing press is full speed ahead.

 

[MillauFr]

Yup.

And with today’s remarks, the printing press is full speed ahead.

Which is not a recipe for long term of the economy. The official inflation numbers may be very low but in center sectors of the economy inflation is out of control. Real estate and land prices in our area are out of control. People have no where to park all of the excess cash that is flooding the economy.

 

[spiders]

I remain cautiously optimistic about the market. I bought Royal Caribbean at $133 -- I know, I know. What a blood bath that was. I bought more at $30. I pulled the plug at $65 and decided it was time. Thanks to the shares I bought at $30, it made the overall loss much better. I consider myself lucky at this point.

 

[ChrisFL]

I don't want to hear about how great the stock market is if unemployment is still 30-40 million people

 

[spiders]

I don't want to hear about how great the stock market is if unemployment is still 30-40 million people

A lot of 401k's look much better today than they did 60 days ago. Everybody who wants to retire some day cares.

 

[godisney14]

I don't want to hear about how great the stock market is if unemployment is still 30-40 million people

What matters most to the people in charge right now is that the stock market appears to be very strong, stronger than ever, at all costs.

I remain cautiously optimistic about the market. I bought Royal Caribbean at $133 -- I know, I know. What a blood bath that was. I bought more at $30. I pulled the plug at $65 and decided it was time. Thanks to the shares I bought at $30, it made the overall loss much better. I consider myself lucky at this point.

I would not have anything to do with cruises at the moment IMHO. Not as a customer, an employee, or an investor. Glad you were able to offset some of those losses.

 

[RamblingMad]

I remain cautiously optimistic about the market. I bought Royal Caribbean at $133 -- I know, I know. What a blood bath that was. I bought more at $30. I pulled the plug at $65 and decided it was time. Thanks to the shares I bought at $30, it made the overall loss much better. I consider myself lucky at this point.

Better than buying companies that have filed for bankruptcy. That won’t end well for a lot of investors.

 

[JimMIA]

I don't want to hear about how great the stock market is if unemployment is still 30-40 million people

It's going to be a long, difficult comeback regardless of what the stock market does.

Your numbers are much higher than the 23 million high, 21 million now numbers that I've seen, but we have a long way to go.

And it's not going to be as easy as re-hiring the employees who were laid off.

• Many laid off people don't want to come back to work until their $600 per week unemployment supplement ends -- they're making more than they would by working.
• Many businesses have gone, or will go, under.
• Employers will look for the best talent they can hire, not necessarily the people they laid off.

Lots of issues that are going to make the Main Street recovery a lot more difficult than the rebound we've seen in the market.

And, of course, there is no guarantee that the market won't decline again.

 

[MillauFr]

Better than buying companies that have filed for bankruptcy. That won’t end well for a lot of investors.

Yes I read the story yesterday in the Wall St. Journal all of the newbie investors buying Hertz. Do they understand the stock will go to zero and they will be wiped out? It is just gambling.

 

[MillauFr]

And Telsa hit $1027 a share today. What on earth is that all about? Doesn't GM produce more cars in one hour than Telsa produces in an entire year? The stock market is in bizzaro world.

 

[MillauFr]

It's going to be a long, difficult comeback regardless of what the stock market does.

The problem is that in some sectors of the economy and regions of this country there has been no dip at all. Other sectors and regions will never recover. That is causing huge problems in our country that must be balanced out.

 

[RamblingMad]

Yes I read the story yesterday in the Wall St. Journal all of the newbie investors buying Hertz. Do they understand the stock will go to zero and they will be wiped out? It is just gambling.

Happens. It’s pretty much gambling.