Interesting OP-ED on the stock market

[kallend 2,184]

www.nytimes.com/2011/02/14/opinion/14Salmon.html

...

The only sure way to survive a canopy collision is not to have one.

[rushmc 23]

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www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[kallend 2,184]

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www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

You assume too much, read poorly, or fail to comprehend.

I simply wrote that it is interesting.

...

The only sure way to survive a canopy collision is not to have one.

[rushmc 23]

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Quote

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www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

You assume too much, read poorly, or fail to comprehend.

I simply wrote that it is interesting.

worming and weasling yet again I see

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[kallend 2,184]

QED

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The only sure way to survive a canopy collision is not to have one.

[Remster 30]

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www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

Is that the main message you got from that piece?

Remster

[rushmc 23]

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www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

You assume too much, read poorly, or fail to comprehend.

I simply wrote that it is interesting.

But let me try to be more specific

As I did not assume anything as I did ask a question

But to continue

The following was in the link YOU posted

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These days a healthy stock market doesn’t mean a healthy economy, as a glance at the high unemployment rate or the low labor-market participation rate will show

Hence my question to you

Care to answer now that I pulled the quote to put context into the question? (since you are unable or unwilling to think about it)

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[rushmc 23]

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Quote

Quote

www.nytimes.com/2011/02/14/opinion/14Salmon.html

So you do not agree with statements indicating the economy is on the way back?

Is that the main message you got from that piece?

No
Not totally

I did find it an interesting part of the peice however

Many have posted here that the Stock Market being up is an indication of the overall economy

I have not really thought that so much

So I asked a yet unanswered question of the QED king here

He wormed and weasled again it seems

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[kallend 2,184]

Why don't you tell us what you think of the argument in the article?

...

The only sure way to survive a canopy collision is not to have one.

[ryoder 1,590]

Very recently I read an article outlining how the bulk of stock trading these days is automated computer trading.
So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones.

[rushmc 23]

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Why don't you tell us what you think of the argument in the article?

The worm turns again

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[Guest]

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Very recently I read an article outlining how the bulk of stock trading these days is automated computer trading.
So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

This month's issue of Wired has an in-depth article on this very subject.

mh
.

"The mouse does not know life until it is in the mouth of the cat."

[ryoder 1,590]

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Very recently I read an article outlining how the bulk of stock trading these days is automated computer trading.
So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

This month's issue of Wired has an in-depth article on this very subject.

mh
.

Ahhh...that might be where I saw it.
I am a subscriber.

"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones.

[kelpdiver 2]

His headline suggests a conclusion that isn't supported by his text. And several statements raise eyebrows.

The market is traditionally a leading indicator. It starts moving before people generally feel good about the economy.

Facebook and Twitter are still pre IPO, but that's unlikely to be true forever. Just not now. This new phenomenon with the secondary private stock market looks more fad than real to me, and will fade.

4000 companies instead of 7000 is still a lot. Yes, there has been a lot of consolidation in recent years. But then you see periods of times where companies start spinning off their pieces - In the past decade Phillip Morris spun off Kraft and their stake in Miller Beer.

Ultimately, profits drive stock prices. Not "algorithms or speculators." That sort of 'system is rigged' commentary seems to be pandering to the suspicious readership.

[NewGuy2005 53]

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Very recently I read an article outlining how the bulk of stock trading these days is automated computer trading.
So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

If I'm not mistaken, it's been that way quite a while. Computer genterated trading was part of the reason for Black Monday" back in '87 as well as the "Flash Crash" last May.

[CanuckInUSA 0]

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So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

When the money managers want to make some money, they position themselves to go long, the market all of a sudden becomes bullish, the money managers make tons of money. Then they decide it is time to make some more money. So once again they position themselves this time to go short, the market turns to the bears and the money managers make more money. Repeat as necessary.

What happens on Wall Street and what happens on Main Street are two completely different things.

Try not to worry about the things you have no control over

[winsor 236]

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So as opposed to the past, when stock trades reflected what people were thinking, todays market is just a reflection of competing algorithms, which may have little, (if any), connection to the real business.

When the money managers want to make some money, they position themselves to go long, the market all of a sudden becomes bullish, the money managers make tons of money. Then they decide it is time to make some more money. So once again they position themselves this time to go short, the market turns to the bears and the money managers make more money. Repeat as necessary.

What happens on Wall Street and what happens on Main Street are two completely different things.

Wall Street is like a big casino. "What happens in Vegas stays in Vegas" and all that.