Guest guest Posted February 21, 2011 Report Share Posted February 21, 2011 " I've been watching the stock market, the DOW anyway, and wondering if there isn't another bubble building up. Given the state of the economy, the high true unemployment rate, inflation danger and other things that aren't widely reported, I don't see the reason for the market to be rising like it is. I've read stories about certain tech stocks being highly valued. These are the game site Zynga though Facebook and others are up there as well. Some others might be up because of government cronyism and handouts. This is rather reminiscent of the late 1990's tech bubble bursting. " We're due for a correction, but this time, the smart investors won't be fooled. That is to say, the major players on the market will sell off gradually and early. It will be the small time investors that will get hit hard because they won't see a gradual decline as something to cause them to bail. Remember that the market runs on speculation about how a business will do, not on how a business actually performs. Smart big-time investors know that most businesses are performing poorly and there is no real hope for significant favorable profits in the near future. But they continue to buy into stocks because consumer confidence is increasing, and small timers are buying into the market. This raises stock prices. When the major players see high enough prices, they will sell. Another factor is that major investors are diversifying their portfolios more, meaning that they buy the same amount of stock as before, but in many more companies. So if they dump stock in one company, it will not be noticed as much as before. The market is jittery and it will fall again. Administrator Quote Link to comment Share on other sites More sharing options...
Guest guest Posted February 22, 2011 Report Share Posted February 22, 2011 I think you're right. If the other of these nations start cutting off oil supplies that will be bad. I just wonder what will happen if the "protesters" here in the US get violent what will happen. I'm less concerned about the direct economic impact than I am about the government's reaction. In a message dated 2/21/2011 1:31:00 P.M. Eastern Standard Time, no_reply writes: The market is jittery and it will fall again.Administrator Quote Link to comment Share on other sites More sharing options...
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