Steve R.
Retired
- Local time
- Yesterday, 23:10
- Joined
- Jul 5, 2006
- Messages
- 4,674
In the face of lackluster economic news the US stock market continues to move up to new highs. Why?
My belief has been the low interest environment that we are currently experiencing. There is simply no other place to put your savings. You can find good dividend paying stocks where the dividend exceeds the inflation rate. Naturally, the retail investor by flocking to these stocks would drive-up their price.
Lou Dobbs, who has a financial program on Fox News, suggested last night that the rise in the stock market is the result of the Feds quantitative easing program. Specifically, that the companies are using the money they received (from the Fed buying their bonds) to buy back stock. An interesting radical viewpoint that may hold some validity.
The rise in the US stock market, of course, can be attributed to a combination of numerous factors. Nevertheless, persistent unemployment and anemic economic growth would suggest that the US stock market should not be moving to new highs. Your thoughts?
My belief has been the low interest environment that we are currently experiencing. There is simply no other place to put your savings. You can find good dividend paying stocks where the dividend exceeds the inflation rate. Naturally, the retail investor by flocking to these stocks would drive-up their price.
Lou Dobbs, who has a financial program on Fox News, suggested last night that the rise in the stock market is the result of the Feds quantitative easing program. Specifically, that the companies are using the money they received (from the Fed buying their bonds) to buy back stock. An interesting radical viewpoint that may hold some validity.
The rise in the US stock market, of course, can be attributed to a combination of numerous factors. Nevertheless, persistent unemployment and anemic economic growth would suggest that the US stock market should not be moving to new highs. Your thoughts?