Comments on: Reflation = S&P 1000; What’s Next? http://www.ritholtz.com/blog/2009/08/reflation-sp-1000-whats-next/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 19:46:13 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Keith D. http://www.ritholtz.com/blog/2009/08/reflation-sp-1000-whats-next/comment-page-1/#comment-200264 Keith D. Tue, 04 Aug 2009 12:55:48 +0000 http://www.ritholtz.com/blog/?p=34734#comment-200264 Very good read. Forgive me for being naive, but what caused the second fall in the Dow back in the 30's after the bargain hunters got back in? Do you think any of the protections or actions the Fed has done now could prevent something similar today? I always get a bit warry when media jumps on the bandwagon and starts preaching how great the market has been doing. It's a sign of impending doom. Just like their obsession with Twitter, it's a fad and people will get sick of hearing about it and move on. Let's just hope this recent market uptick isn't a fad. Very good read. Forgive me for being naive, but what caused the second fall in the Dow back in the 30′s after the bargain hunters got back in? Do you think any of the protections or actions the Fed has done now could prevent something similar today? I always get a bit warry when media jumps on the bandwagon and starts preaching how great the market has been doing. It’s a sign of impending doom. Just like their obsession with Twitter, it’s a fad and people will get sick of hearing about it and move on. Let’s just hope this recent market uptick isn’t a fad.

]]> By: davossherman@gmail.com http://www.ritholtz.com/blog/2009/08/reflation-sp-1000-whats-next/comment-page-1/#comment-200256 davossherman@gmail.com Tue, 04 Aug 2009 12:36:27 +0000 http://www.ritholtz.com/blog/?p=34734#comment-200256 "For evidence I submit the action in the S&P 500 during the week AFTER Lehman failed. On Friday September 12, the last trading day before the nerve-fraying announcement that LEH would file for bankruptcy protection, the SPX closed at 1252. So, take a guess: Where did the SPX close on the following Friday — after the Lehman earthquake sent tremors around the globe? How much of your life savings would you put on the line — even with the full benefit of hindsight! — if I gave you even money odds on the simple, binary choice of higher or lower? The correct answer is “higher”." Another super read. Thank you! I remember the above day well, both my wife and I had the same Huh? look. Your "I honestly don't know" makes my I honestly don't know feel less lonely! Take care “For evidence I submit the action in the S&P 500 during the week AFTER Lehman failed. On Friday September 12, the last trading day before the nerve-fraying announcement that LEH would file for bankruptcy protection, the SPX closed at 1252. So, take a guess: Where did the SPX close on the following Friday — after the Lehman earthquake sent tremors around the globe? How much of your life savings would you put on the line — even with the full benefit of hindsight! — if I gave you even money odds on the simple, binary choice of higher or lower? The correct answer is “higher”.”

Another super read. Thank you!

I remember the above day well, both my wife and I had the same Huh? look.

Your “I honestly don’t know” makes my I honestly don’t know feel less lonely! Take care

]]> By: leftback http://www.ritholtz.com/blog/2009/08/reflation-sp-1000-whats-next/comment-page-1/#comment-200235 leftback Tue, 04 Aug 2009 08:46:48 +0000 http://www.ritholtz.com/blog/?p=34734#comment-200235 Morning, Jack, from Piccadilly. Yes, all very 1930. The echoes of former prosperity are still reverberating around London and New York this summer, even as unemployment continues to climb ib both countries. The spin control from the media is fairly tight over here as well. Eerie similarities to these eyes between Manhattan and the City of London as the papers trumpet bank earnings from Barclays and then point out the massive bonuses. Bankers scrambling for the last few millions of bonus money before the population wakes up to 20-25% unemployment and finally brings down the gates. Morning, Jack, from Piccadilly. Yes, all very 1930. The echoes of former prosperity are still reverberating around London and New York this summer, even as unemployment continues to climb ib both countries. The spin control from the media is fairly tight over here as well. Eerie similarities to these eyes between Manhattan and the City of London as the papers trumpet bank earnings from Barclays and then point out the massive bonuses. Bankers scrambling for the last few millions of bonus money before the population wakes up to 20-25% unemployment and finally brings down the gates.

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