Trumpled (Alternative Leading)

[madbluboy]

https://twitter.com/jeremypiven/status/1...04706?s=07

[Baggers]

https://twitter.com/jeremypiven/status/1...04706?s=07

)  )  )

[madbluboy]

[Thryleon]

The Senate is tied at 48 each and won't be finalised until run-off elections are held.  Whichever party wins will have a small majority and, as we know, voting on party lines isn't a thing in the USA.  Interesting times ahead and hardly the stuff to encourage the Dow to rise.

Actually, this is the stuff that makes the DOW rise.

The Dow dislikes uncertainty.

A republican or Democrat majority with same president in power, leads to volatility, policy creation on the run, and a lot of undoing of previous implementations surrounding tax law, fiscal stimulus, strategy regarding environment, energy, war etc etc etc.

When the senate is split, there are a lot more checks and balances, and voting that eradicates the volatility, and the DOW likes that more than any party or person elected, because they know that the next 3 years will look roughly like the last 3 years.

[LP]

Actually, this is the stuff that makes the DOW rise.

The Dow dislikes uncertainty.

I don't think there is one formula fits all, because there is an equally large part of the financial market that makes just as money from instability.

[Thryleon]

As true as that is LP, financial markets still like certainty irrespective of whether or not some industries can make money from instability.

The lack of clear direction is a bigger concern than anything else, because the market is all about confidence.  Hence why Vaccine news causes a lot of stocks that are still having a lot headwinds rise exponentially.  Did you see what happened to energy and travel stocks particularly yesterday?  Surged by a ridiculous amount on the assertion we have a vaccine with a 90% success rate, with no real data to back it up.

FLT rose 16% on open.  Flight centre.  A company that released a capital note scheme to fill its coffers with money so they can remain liquid, whilst only making 12% of previous profits, which who knows what that does to its balance sheet.  Why?  because we "might" have a vaccine which means that they can finally start planning at returning to profit.

THAT is an example of what confidence can do to financial markets and what I am talking about.

[LP]

THAT is an example of what confidence can do to financial markets and what I am talking about.

I agree that it's a good thing, but I just worry that the part most loudly being touted is just a very small part.

Flightcentre is a great example, because in total it's a tiny fraction of the tourism and holiday trade. Locally small domestic vendors are gearing up for the biggest holiday season on record, because of the very same circumstance that Flightcentre rallies against! But you won't see it reported, because the myriad of smaller vendors are not a large monolithic entity that garnishes media support. Yet fiscally as an impact on the economy the small vendors add up to far more than Flightcentre ever will!

Sure, somebodies retirement fund or pension might be linked to a publicly listed company like Flightcentre, but not everyone's, and all those small vendors have superannuation, buy and employ locally. Some academics have even argued that the demise of a monolith like Flightcentre is more than compensated for by local small vendor growth, increased regional employment and a global reduction in emissions. But you won't read News Ltd reporting the last part!

[ElwoodBlues1]

As true as that is LP, financial markets still like certainty irrespective of whether or not some industries can make money from instability.

The lack of clear direction is a bigger concern than anything else, because the market is all about confidence.  Hence why Vaccine news causes a lot of stocks that are still having a lot headwinds rise exponentially.  Did you see what happened to energy and travel stocks particularly yesterday?  Surged by a ridiculous amount on the assertion we have a vaccine with a 90% success rate, with no real data to back it up.

FLT rose 16% on open.  Flight centre.  A company that released a capital note scheme to fill its coffers with money so they can remain liquid, whilst only making 12% of previous profits, which who knows what that does to its balance sheet.  Why?  because we "might" have a vaccine which means that they can finally start planning at returning to profit.

THAT is an example of what confidence can do to financial markets and what I am talking about.

Yep....Corporate Travel went up about 18% based on sentiment....there are no extra planes flying or any travel happening its all about confidence and sentiment and thats where the easy money gets made by the big boys.

[LP]

Yep....Corporate Travel went up about 18% based on sentiment....there are no extra planes flying or any travel happening its all about confidence and sentiment and thats where the easy money gets made by the big boys.

They come from a base that's lost billions / trillions!

At the moment, it's a bit like buying a $100 lottery ticket, and celebrating that it's won $5.

[LP]

I'd suggest you would need to be very diligent and read the fine print on the Trump "Save America PAC", to make sure just how your donated money could be spent.

Saving America or saving Trump?