Now that Obama is safely inaugurated, the D's can get back into the market. Make it look good for him. I even understand that diversified oil companies are a good buyl
Dow down another 332 points
- Thread starter 30ashopper
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people don't buy into the stock market to make a President, even President Obama, look good.
TooFarTampa
SoWal Insider
How much cash is sitting on the sidelines vs. how much cash has been "lost" due to reduced values? Any ideas?
I guess my question is, how much could the rising tide of sudden optimism (ie a quick cash infusion after a signal of "recovery") lift the market?
I guess my question is, how much could the rising tide of sudden optimism (ie a quick cash infusion after a signal of "recovery") lift the market?
That may depend on how much money investors can print.
I've been talking with baby boomers and older family members and friends, most said they pulled out in the fall and say they won't even consider getting back in until 2010 or maybe 2011. Nobody wants to risk catching a falling knife.
Close to 4 TRILLION in DOMESTIC money market funds.... not sure how much is in money market funds in foreign countries. Also, not sure how much cash is parked in safe CD's or T-Bills. I would venture a guess that there must be in excess of 10 trillion dollars in world-wide liquidity. Much of this money ( half ? ) will return to the equity markets eventually. Those that sold stocks to realize their losses.....that money is in money heaven. BTW, the dow was up 280 points today after yesterdays shellacking. Volatility still remains.
TooFarTampa
SoWal Insider
Interesting. And the NYSE market cap is what, $10 trillion? Less? That's a lot of money sitting on the sidelines. I know that this recession is deep and very real, and job creation is the best way to boost us out of it. But I wonder how much of it is psychological also.
We may be adjusting to a new form of economy, one less reliant on consumer debt. Personally I?m not convinced Americans are ready to give up their spending ways.. if the credit is available, I think they?ll fall back on old habits. (Not that that?s a good thing.) Time will tell.
As far as job creation goes, I don't see where that's going to come from in the near term. There are a lot of people out there who may have to change careers because their jobs are not coming back due to these changes.