Stock market?

[human1234]

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. 

[JANASENA]

Interest cuts

Companies will start investing and Hiring

Then Economy flourishes

Meanwhile economy slowdown and job market slowdown will continue.

[yemdoing]

27 minutes ago, human1234 said:

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. 

election time kada... can't let it crash now. Nov 2024 taruvatha real cinema untundhi ani naa peeling 

[Sixers]

Bad news antha eppudo vachesindi. Inka kummude antunnaru.

[Pandubabu]

1 hour ago, human1234 said:

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. 

inflation up is a good reason to invest in stocks uncle . there is no single reason for stocks to go up or down .

if the inflation is up, you want to protect assets by investing that yields more than inflation rate . 

[human1234]

 

1 hour ago, Pandubabu said:

inflation up is a good reason to invest in stocks uncle . there is no single reason for stocks to go up or down .

if the inflation is up, you want to protect assets by investing that yields more than inflation rate . 

Aithe inflation good aa uncle. Then fed should aim for 10% inflation?

[KATHRI]

2 hours ago, human1234 said:

Inflation came more than expected but still stocks up. Nothing seems to stop it. Even though happy about it, what could happen next? Would companies increase hiring as they have to show more growth to meet Wall Street expectations? or would layoffs happen more as they can't grow to meet Wall Street expectations and cut costs? Or this is just a bubble?

 

With people having so much money because of stock prices up and house prices up, Inflation target of 2% is hard to achieve. Even if fed increases interest rates to 10%, stocks will find some way to go up. 

Companies already doing to meet walstreet expectations. That is cutting the costs by sacking employees 

[Pandubabu]

18 minutes ago, human1234 said:

 

Aithe inflation good aa uncle. Then fed should aim for 10% inflation?

Inflation is good ani cheppaledhu va .. if there is inflation , there are good section of people who want to protect their assets by investing in stocks .

inflation is good for stocks sometimes ki, inflation is good ki difference hai na .. 

[human1234]

8 minutes ago, Pandubabu said:

Inflation is good ani cheppaledhu va .. if there is inflation , there are good section of people who want to protect their assets by investing in stocks .

inflation is good for stocks sometimes ki, inflation is good ki difference hai na .. 

I am not sure on what you said but I might be wrong. Let's say inflation is 10% and not falling, then fed will increase  interest rates to 10%+, which will probably cause stock market crash. Stocks might be going up because everyone is hoping interest rates will fall assuming inflation will come down. But chances of inflation falling especially to 2% is very low in the near future

 

[Pandubabu]

19 minutes ago, human1234 said:

I am not sure on what you said but I might be wrong. Let's say inflation is 10% and not falling, then fed will increase  interest rates to 10%+, which will probably cause stock market crash. Stocks might be going up because everyone is hoping interest rates will fall assuming inflation will come down. But chances of inflation falling especially to 2% is very low in the near future

 

well , it is not a good idea to assume stock market works on a single parameter . that's why it is too complex to time the market . here is one of the links why some people feel it is a hedge against inflation .

again can't go by single parameter saying , when inflation is 30% , stock market will thrive .

there are multiple parameters that affect the market . in some situations, uptick in inflation may trigger investors with cash assets to rush to value stocks .

higher inflation over longer time may make people think economy is going bonkers and try to cash out from stock market .

stock market is not economy , economy is not stock market . economy is much bigger than stock market . stock market is a forward looking indicator . if economy is in mess at point a , stock market recovers before economy recovers .

one of the other reasons it is a terrible idea to time the market .

you can learn more by reading less than 50 pages book called  " the little book of common sense investing " by jack bogle who is considered one of the pioneers of modern day passive investing.

I spent few minutes to respond to this just as a good fellow citizen wanting to educate the fellow citizen . if you want to troll by passing a blanket statement , feel free .. 

https://www.thrivent.com/insights/investing/how-does-inflation-affect-stocks

 

[Hitman]

calling @Konebhar6 @Konebhar4 @Konebharr6

konebar bro ki kooda ***** ID's vachesaaya... 

[human1234]

17 minutes ago, Pandubabu said:

well , it is not a good idea to assume stock market works on a single parameter . that's why it is too complex to time the market . here is one of the links why some people feel it is a hedge against inflation .

again can't go by single parameter saying , when inflation is 30% , stock market will thrive .

there are multiple parameters that affect the market . in some situations, uptick in inflation may trigger investors with cash assets to rush to value stocks .

higher inflation over longer time may make people think economy is going bonkers and try to cash out from stock market .

stock market is not economy , economy is not stock market . economy is much bigger than stock market . stock market is a forward looking indicator . if economy is in mess at point a , stock market recovers before economy recovers .

one of the other reasons it is a terrible idea to time the market .

you can learn more by reading less than 50 pages book called  " the little book of common sense investing " by jack bogle who is considered one of the pioneers of modern day passive investing.

I spent few minutes to respond to this just as a good fellow citizen wanting to educate the fellow citizen . if you want to troll by passing a blanket statement , feel free .. 

https://www.thrivent.com/insights/investing/how-does-inflation-affect-stocks

 

Interesting read but growth stocks are performing lot better than value stocks.

[Pandubabu]

9 minutes ago, human1234 said:

Interesting read but growth stocks are performing lot better than value stocks.

well, I personally feel short term investing is a gamble . 80% of my stock  investments is in index funds that I buy every Friday without worrying what the market is doing . 20% in stocks I am buying for long term . short term I keep only in CDs and treasuries 

[human1234]

8 minutes ago, Pandubabu said:

well, I personally feel short term investing is a gamble . 80% of my stock  investments is in index funds that I buy every Friday without worrying what the market is doing . 20% in stocks I am buying for long term . short term I keep only in CDs and treasuries 

I know it is tough to time the market. I believe most of us including me are invested in index funds. But currently I believe the stock market ran too much ahead assuming interest rate cuts but I don't see any (except a couple this year because of elections)

https://www.investopedia.com/fed-stocks-7369783

 

 

[Pandubabu]

1 hour ago, human1234 said:

I know it is tough to time the market. I believe most of us including me are invested in index funds. But currently I believe the stock market ran too much ahead assuming interest rate cuts but I don't see any (except a couple this year because of elections)

https://www.investopedia.com/fed-stocks-7369783

 

 

so , what's the plan ? how do you know the stock market ran only assuming interest rate cuts . if you see , not all the stocks are going great. there are percentage of stocks doing good, mostly AI ones .

don't try to reason with stock market if you are just a retail investor .

trust america . if you can't trust it , better take funds out is my personal opinion