Agriculture News, Markets, Weather, Ag Talk, Farm Machinery | Agriculture.com
Reply
Advisor
425Cat
Posts: 1,663
Registered: ‎05-14-2010
0

Who is buyting stocks

Who is juicing the stock market. Is it Mom and Pops or is big banks and brokerage houses. Doubt the general public is financing this move.

Veteran Advisor
Shaggy98
Posts: 4,167
Registered: ‎06-19-2011
0

Re: Who is buyting stocks

Don't you think the millions of people with retirement plans have a part of the stock market?

Advisor
425Cat
Posts: 1,663
Registered: ‎05-14-2010
0

but Re: Who is buyting stocks

Well certainly but whose is pumping it now. Its not like the middle class is writing checks to their brokers this week.

Veteran Advisor
c-x-1
Posts: 3,259
Registered: ‎06-26-2012
0

Re: but Re: Who is buyting stocks

Strong hands....Big banks who get $$$ from fed?

 

Then once SP (cash) takes out 1575 it will hang out for a while. What happens next might be suprising.

Advisor
hardnox604008
Posts: 5,518
Registered: ‎05-14-2010
0

Re: Who is buyting stocks

U R correct. Banks and hedgies "risk on.

Risk can come off like switching off a light.
"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason."

J.K. Galbraith
Advisor
hardnox604008
Posts: 5,518
Registered: ‎05-14-2010
0

Re: Who is buyting stocks

http://kunstler.com/blog/2013/02/cattle-drive.html

 

The always entertaining Jim Kunstler on the matter.

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason."

J.K. Galbraith
Veteran Advisor
c-x-1
Posts: 3,259
Registered: ‎06-26-2012
0

Re: Who is buyting stocks

hardnox, thx for the article.....sobering indeed...i thought the "lights out" was prophetic, as well (in general sense of technology overload, incl ag)

 

intuitively, i know $$ flowing from bonds - equities.......looking back 40 yrs on charts - only been a few periods (short) when this occurred, one being the Jimmy-Ronald transition.......who buys the bonds as they become cheaper?

Advisor
hardnox604008
Posts: 5,518
Registered: ‎05-14-2010
0

Re: Who is buyting stocks

The good news, I think, is that this stock rally probably doesn't have a lot more legs wich means that money will rotate back to bonds or at least enough to keep a bid under them for now.

 

But let's think about this in the very simplest terms: (for the less technically inclined, as Kunstler says, bonds trade inversely to interest rates and thus when rates go up the value of the bonds go down.

 

So here we are printing massive amounts of government, corporate and junk bonds, all of which have nowhere to go invalue but down unless governments go further in the unconventional direction (i.e., negative nominal rates).

 

Ayeeh! talk about WMD. But if there is to ever be an exit then most of the paper is going to have to have been moved to the short end in order to eliminate principal exposure. So I guess the game is about duration?  Issuers want suckers to risk huge amounts of principal in order to loan them money at very low rates for a very long time, investors want to stay as short as possible in order to avoid that but get no yield.

 

Headache time, I have to think about this.

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason."

J.K. Galbraith
Veteran Advisor
c-x-1
Posts: 3,259
Registered: ‎06-26-2012
0

Re: Who is buyting stocks

[ Edited ]

yes, i understand, i get lost in the rabbit hole of deciphering the Houdini code, as well---aka fog, smoke'n mirrors

 

don't know if you look @ charts--very interesting on monthly SP---BIG expanding triangle...top (A) - 2000-then down to-(B) 2002--then up to- (C) 2007 -back down to (D) 2009---now, almost testing 2007 highs - I expect a "hang out" period here. Then, a pure technician would say we're blasting on (continuing) this impulse to the stratosphere----but, with all the hanky panky going on it may take a few years (2017) of rangebound.......

 

c-x-1