Why isn't the US stock market down to year 2013 levels, to year 2009…

RayLopez

Why isn't the US stock market down to year 2013 levels, to year 2009 levels and finally to year 1982 levels, when the DJ-30 was 779?

Is it because the market is anticipating a V-shaped recovery? Or, IMO more likely, is it the cult of equities, and the 'buy-the-dips' Abby Joseph Cohen strategy?

Comments (3)
No. 1-2
jeffpogo
jeffpogo

It is because of all the stimulus money people have to spend. Many people make more on unemployment with the extra $600 and the $1200 bonus than they do working. People do not save -- they spend, so retailers will report surprise to the upside on earnings. And the government keeps talking up more stimulus. Government debt no longer matters because the debt is so big it is not realistic to even think of balancing the budget.

michiganmoon
michiganmoon

I don't know if we can say that it should be at X year's level. However, it does seem crazy that with all the crap going on in the world the S&P 500 is only down about 12% or so from its highs. Look at the PE ratio, seems a bit high to me.

But the Fed is intervening a lot and I've heard at least 1 person say they are buying stocks as a hedge against inflation. So...