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Buy the dip.

SteveAWOL said:
ITK?!

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There will always be the further transfer of wealth between the haves and have nots.

There will be plenty who will lose the lot and those with a lot, getting a lot more. For what purpose I'm not quite sure.
 
Thinking about it, it closed yesterday at just a fraction below 5000. I guess that could've triggered a significant amount of buy orders.
 
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Parklaner81 said:
Thinking about it, it closed yesterday at just a fraction below 5000. I guess that could've triggered a significant amount of buy orders.
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Then people jumped in as well. Having said that I think there is support at 5k, not sure that will last though.
 
Missed the chance to get in under 5K, think there will be a few more dips yet once 1st quarter figures comes out and companies start to report some results.
 
DTA said:
It's pretty much been the strategy over the last decade though hasn't it?
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I think it's more that they've been far too squeamish about withdrawing what were supposed to be emergency measures, rather than a strategy in itself. They haven't dared make a serious attempt at even beginning to unwind it.
 
P.D. said:
Missed the chance to get in under 5K, think there will be a few more dips yet once 1st quarter figures comes out and companies start to report some results.
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With hindsight, I'm thinking the breaching of the 5k point unleashed some buy-side demand. With that in mind it might be better to avoid aiming for the 'milestone' figures, as they could trigger an immediate lift.
 
Parklaner81 said:
And all the while we go on inflating even bigger bubbles than 2008...
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Money only works on good faith. That you take it on good faith that a piece of paper with a ladies head on it, has intrinsic value. Or a shell or a massive stone in the case of the Rai islands in the pacific (google 'Rai stones').

Financial markets are the same now. If people believe it, it works. My take is there is even more cash floating around now, and little income from bank interest rates, so there is a lot of faith in markets.

Certain stocks will see big % earning increases - supermarkets, laptop manufacturers - while others like airlines will obviously suffer short term.
 
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SpurMeUp said:
Money only works on good faith. That you take it on good faith that a piece of paper with a ladies head on it, has intrinsic value. Or a shell or a massive stone in the case of the Rai islands in the pacific (google 'Rai stones').

Financial markets are the same now. If people believe it, it works. My take is there is even more cash floating around now, and little income from bank interest rates, so there is a lot of faith in markets.

Certain stocks will see big % earning increases - supermarkets, laptop manufacturers - while others like airlines will obviously suffer short term.
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Yeah, I've a reasonable idea of how these things work.

One of the reasons that there is so much cash floating around is precisely because of historically low interest rates - and I was actually referring as much to central bank policy on this issue as quantitative easing. Too-low interest rates were cited as one of the seeds of the 2008 crisis. They've been lower, and for longer, since, with central banks showing at best, a weak appetite to 'normalise'. Meanwhile, asset prices rocket skywards...
 
Parklaner81 said:
Yeah, I've a reasonable idea of how these things work.

One of the reasons that there is so much cash floating around is precisely because of historically low interest rates - and I was actually referring as much to central bank policy on this issue as quantitative easing. Too-low interest rates were cited as one of the seeds of the 2008 crisis. They've been lower, and for longer, since, with central banks showing at best, a weak appetite to 'normalise'. Meanwhile, asset prices rocket skywards...
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Agreed. We don't really know what economically normal is. Is there an equilibrium economic state? Or is it simply having faith - faith that it all works, and all has value? Economics is not natural science, it is human psychology. The 2008 crisis wasn't caused by interest rates. It was caused by bad debt and a lack of faith.
 
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SpurMeUp said:
The 2008 crisis wasn't caused by interest rates. It was caused by bad debt and a lack of faith.
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Debt that was built-up in large part thanks to a low interest rate environment, and much of which was taken out to buy assets whose values were inflated in large part by a low interest rate environment...
 
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