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Is it me, or is it as the news gets more bearish the stockmarkets rise more? presumably stock mkt players are back to banking on rate cuts galore coming round the corner?

I just would have thought that on a day like today the news flow might have had traders stopping to think a wee bit at least. Or dont they count anymore, have the computers taken over most of the stock market action these days??

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Is it me, or is it as the news gets more bearish the stockmarkets rise more? presumably stock mkt players are back to banking on rate cuts galore coming round the corner?

I just would have thought that on a day like today the news flow might have had traders stopping to think a wee bit at least. Or dont they count anymore, have the computers taken over most of the stock market action these days??

1. City populated with Bright Young Things that have only ever seen equities go one way.

2. Analytical, rational personality types replaced by irrationally exuberant, endlessly optimistic personality types.

3. Computer models running on training sets taken from 20 years of almost continuous growth.

4. Complex instruments almost no-one understands

5. A society that rewards vacuous luck, celebrity and deception over hard work, modesty and honesty

Consider a bus full of children having a party heading uphill in fog towards a cliff.

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Is it me, or is it as the news gets more bearish the stockmarkets rise more? presumably stock mkt players are back to banking on rate cuts galore coming round the corner?

I just would have thought that on a day like today the news flow might have had traders stopping to think a wee bit at least. Or dont they count anymore, have the computers taken over most of the stock market action these days??

I assumed that this was because the "very wealthy" wanted to move from "investment" in property (which is making spectacularly small returns) to investment in something else - erm - anything else.

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A.steve

Agree, churn from the decapitated bond markets as well, for while. The liquidity is out there, this time the sting from inflation I think will be a killer though.

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1. City populated with Bright Young Things that have only ever seen equities go one way.

2. Analytical, rational personality types replaced by irrationally exuberant, endlessly optimistic personality types.

3. Computer models running on training sets taken from 20 years of almost continuous growth.

4. Complex instruments almost no-one understands

5. A society that rewards vacuous luck, celebrity and deception over hard work, modesty and honesty

Consider a bus full of children having a party heading uphill in fog towards a cliff.

Sounds about right to me, although I would point out that the FTSE all time high of over 7 years ago was just a smidgen under 7000.

After the coincidence of 9/11 and the dotcom bust, the FTSE was half that value. That is only 5 years ago.

However, since we are nearly back at that level now, I guess people can think of that as a temporary hangover and it's back to the party.

I remember hearing SM commentators saying that we wouldn't breach 7000 again for another 20 years.

Of course they could still be right. :)

and on 4: Waddya mean "almost"? ;)

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A.steve

Agree, churn from the decapitated bond markets as well, for while. The liquidity is out there, this time the sting from inflation I think will be a killer though.

http://uk.reuters.com/article/stocksNews/i...11?pageNumber=1

I have a gut instinct that inflation is what is key here... but I can't quantify or explain further... Can you?

Is it relevant that the BOE has not "Pumped" as much "liquidity" into the financial system as the ECB and Fed? Am I talking gibberish here, or am I onto something?

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Is it me, or is it as the news gets more bearish the stockmarkets rise more? presumably stock mkt players are back to banking on rate cuts galore coming round the corner?

I just would have thought that on a day like today the news flow might have had traders stopping to think a wee bit at least. Or dont they count anymore, have the computers taken over most of the stock market action these days??

http://www.fool.co.uk/news/property-home/m...age-crisis.aspx

Of course, I might be wrong. We may well be heading straight for a UK sub-prime crisis on the scale witnessed in the USA. And I know that some Fools - especially Cliff D'Arcy - are much more bearish about prospects for the UK housing market than me. But in my view, a sub-prime-fuelled housing market crash in the UK is extremely unlikely -- in fact, just about as likely as a Martian invasion.

:rolleyes::rolleyes::rolleyes:

Bearish ???

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http://www.fool.co.uk/news/property-home/m...age-crisis.aspx

Of course, I might be wrong. We may well be heading straight for a UK sub-prime crisis on the scale witnessed in the USA. And I know that some Fools - especially Cliff D'Arcy - are much more bearish about prospects for the UK housing market than me. But in my view, a sub-prime-fuelled housing market crash in the UK is extremely unlikely -- in fact, just about as likely as a Martian invasion.

:rolleyes::rolleyes::rolleyes:

Bearish ???

Ex deputy editor of Your Mortgage. TMF are now employing an ex (or not so ex) property pumper to write for them! :lol:

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A.steve

Agree, churn from the decapitated bond markets as well, for while. The liquidity is out there, this time the sting from inflation I think will be a killer though.

Errrr....I alway sthought that inflation CAN actually be rather good for the stockmarket - for nominal values at least. Witness Zimbabwe today and the Weimar era.......

Surely deflation is bad for the stockmarket, but good for people with real cash investments (e.g savings bonds, etc)??

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Errrr....I alway sthought that inflation CAN actually be rather good for the stockmarket - for nominal values at least. Witness Zimbabwe today and the Weimar era.......

Surely deflation is bad for the stockmarket, but good for people with real cash investments (e.g savings bonds, etc)??

Historically moderate inflation has been good for stocks but bad for bonds. But high inflation is bad for everything (except gold, no doubt someone will tell me).

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Is it me, or is it as the news gets more bearish the stockmarkets rise more? presumably stock mkt players are back to banking on rate cuts galore coming round the corner?

I just would have thought that on a day like today the news flow might have had traders stopping to think a wee bit at least. Or dont they count anymore, have the computers taken over most of the stock market action these days??

IR cut euphoria. Ride it and dump on the first sign of a correction is my strategy. Stop-loss and finger ready at the mouse times are here.

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