Quote Originally Posted by newoldtech View Post
The stock market seems to march to their own beat. The market has been doing well all year, not just Today. Last Friday the jobs report was weak, so the market rallied figuring that would prompt the fed to step in. Had the report been strong, the market would of probably still rallied on that signalling a better economy. Another example of how the market sees things, if a company announces that it is laying off alot workers that is usually seen as a good thing as they appear to be trimming costs. The market does alot of counter intuitive things at times but after awhile will probably correct itself with a big crash. I think that will happen next spring. But one never knows for sure.
If the jobs figure goes up that means more money in the system and more money that the markets can make off the economy. But those jobs and the money they bring has to come from somewhere. The whole idea behind the stimulus spending that we went through before was to give some incentive for private money to invest so that the economy would grow. That did not happen and the markets want more public money thrown in, will we see greater involvement of private money? What may make the companies invest to increase productivity (more profit with fewer jobs) is the companies are sitting on so much cash that they are really tempting for raiders to buy them up and strip them apart to make a quick profit. So I think no matter which party gets in to power in the fall you will see some of that dead money come back into the economy, either as investments or dividends just to keep the raiders at bay.