Dow makes it four weeks of gains

CPA

Elite Member
Nov 19, 2001
30,322
4
0
The dow has climbed for the past four weeks.

Have we hit the bottom and started slowly climbing out of it? Were stocks just overly sold? Or is this a false hope and we will soon see another dump of stocks?

Other good news, mortgage rates, after a week of climbing, is back down to 6% on a 30 year note.
 

Tominator

Diamond Member
Oct 9, 1999
9,559
1
0
There was a radio ad for a 4.8% home loan.

The housing market and the automotive industry seem to be holding the economy up at this moment.

I think the Christmas Season will be a bust, but I'll bet by the spring thaw the whole economy will be rebounding.
 

MrPhelps

Golden Member
Sep 9, 2001
1,421
0
0
Yeah it seems like we slowly are leveling out . LETS BE OPTIMISTS everyone. If the doom and gloomers of the news media would shut up the market would start making a positive correction faster.


I think the stock market is still a great way to invest, But obvious risk like anything.


Come on Dow 10,000+ next year.
 

HappyPuppy

Lifer
Apr 5, 2001
16,997
2
71
Originally posted by: Tominator
There was a radio ad for a 4.8% home loan.

The housing market and the automotive industry seem to be holding the economy up at this moment.

I think the Christmas Season will be a bust, but I'll bet by the spring thaw the whole economy will be rebounding.


I agree with you about the Christmas shopping season being a bust for a couple of reasons.

1) People who have jobs are worried about keeping them and, assuming they aren't up to their eyeballs in debt, they would like to keep a few bucks in the bank just in case.

2) Most of the toys and other seasonal merchandise that was scheduled to hit the shelves in the next few weeks are sitting on freighters off the coast waiting to be unloaded by the longshoremen who have no intention of doing so.


 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Originally posted by: Tominator
There was a radio ad for a 4.8% home loan.

The housing market and the automotive industry seem to be holding the economy up at this moment.

I think the Christmas Season will be a bust, but I'll bet by the spring thaw the whole economy will be rebounding.


That 4.8% was for a 30? Has to be with points. Or was it a 5 year ARM?

 

Tominator

Diamond Member
Oct 9, 1999
9,559
1
0
Originally posted by: CPA
Originally posted by: Tominator
There was a radio ad for a 4.8% home loan.

The housing market and the automotive industry seem to be holding the economy up at this moment.

I think the Christmas Season will be a bust, but I'll bet by the spring thaw the whole economy will be rebounding.


That 4.8% was for a 30? Has to be with points. Or was it a 5 year ARM?


I'm not sure. It was just a ploy to refinance....American Equity maybe?
 

Shelly21

Diamond Member
May 28, 2002
4,111
1
0
My 401k can't take any more hits....

hmmm, might be a good idea now to move everything to stocks... since they're moving up....
 

glenn1

Lifer
Sep 6, 2000
25,383
1,013
126
Let me address your questions one by one.

Have we hit the bottom and started slowly climbing out of it?

Perhaps, but probably not.

[/quote]Were stocks just overly sold? [/quote]

In the short term, yes.

Or is this a false hope and we will soon see another dump of stocks?

My guess is yes. CSCO reports next week, and i think they're going to print ugly numbers, and that's going to kick the market in the teeth. Folks have been shrugging off a lot of bad guidance from tech companies, but i think they'll sit up and take notice when the Big Dog itself says that they see no improvement.

BTW, i'm almost completely back in cash now, except for about 2 long positions. While stocks were oversold a month ago, they're now wildly overbought. If another act of terrorism (or other significant event) takes place, the market is going to get CRUSHED.