The Stock Market

[TheEconomist]

This leads to an interesting thought, what do you guys think the next fed move will be?

[cvm4]

If inflation isn't above par, then the rates will probably be cut again. At some point we need to fight inflation and have a strong dollar.

[cvm4]

Originally Posted by RUJohnny99

LOL....

http://youtube.com/watch?v=gUkbdjetlY8

How many people have to lose money from this fraud?

I'm not a regular Jim Cramer watcher, but do you really think he had inside information about what Goldman Sachs would do? Or that the Fed would sell it out for $2 a share? He probably looked at the fundamentals and determined that Bear Stearns was fine based off of that and that's all he really could do.

[jloutlaw]

Originally Posted by Rock Star

I used to watch the market daily and played alot of options with Goog, amd, intc, ebay and whatever was moving that day that i was familiar with..started playing the OEX and got my ass handed to me and Goog as well..Did good when i was not so greedy and knew how to cut losses but the hits put me out for a while..im looking to just trade stock and do some conservative option plays that arent so volatile...Learned my lesson the hard way..should have been practicing more than playing real money but it made me smarter..Do you guys use charts.?

I use charts and fundamentals. I've been there with the trading losses. Every sucessful trader had them, also. (I don't rank as successful.)

[jloutlaw]

Originally Posted by cvm4

If inflation isn't above par, then the rates will probably be cut again. At some point we need to fight inflation and have a strong dollar.

Probably 1/4. I agree with Fieldman's article the other day. Another cut won't do much for the economy, but they will for window dressing.

[TheEconomist]

Google up $89 dollars today.. nutz..

[jloutlaw]

Originally Posted by TheEconomist

Google up $89 dollars today.. nutz..

Oversold maybe-I don't follow it closely. I'm long the market so I don't mind it being a catalyst. CAT helped a lot to.

Will it be up again next week? Some technical levels were broken today.

[JohnnyFlake]

Originally Posted by TheEconomist

Google up $89 dollars today.. nutz..

There is something very ODD about that!!!

In fact the price of Google, even before today, makes no sense!!!

What am I not understanding about Google???

[jloutlaw]

Originally Posted by JohnnyFlake

There is something very ODD about that!!!

In fact the price of Google, even before today, makes no sense!!!

What am I not understanding about Google???

It's always been a growth thing. Year over year earnings around 40%. Todays' p/e is around 30.

[cvm4]

Originally Posted by jloutlaw

It's always been a growth thing. Year over year earnings around 40%. Todays' p/e is around 30.

Yup, it also helped that they reassured investors that a recession would not hurt their bottom line.

[TheEconomist]

Originally Posted by JohnnyFlake

There is something very ODD about that!!!

In fact the price of Google, even before today, makes no sense!!!

What am I not understanding about Google???

Gotta remember that the valuation of a stock is basically whatever the mean of the present values of expected future income is, (speaking for long term investors which will generally make for the most accurate valuation) but because of the many different ways of reaching that value (future income) are so vast, mixed with the different time restraints that different long term investors have in mind, no concrete valuation is seen. It basically just hovers around its mean valuation. the day to day large shifts are caused by the short term investors, who tend to care more about market trends than the companies valuation. (which is why some people get in trouble and some get filthy rich. (today is an example of the latter).

In otherwords, people think that in the future, Googles income is going to be so huge that at the price they currently have it for would constitute for a PE of of 0 at a certain point in time in the future...

[JohnnyFlake]

Originally Posted by TheEconomist

Gotta remember that the valuation of a stock is basically whatever the present value of expected future income is,

In other words, people think that in the future, Google's income is going to be so huge that at the price they currently have it for would constitute for a PE of of 0 at a certain point in time in the future...

Yes, I do understand that thinking, however, if you consider what Google really is, in terms of tangible assets, unless I am completely missing the boat here, that's very scary!

[TheEconomist]

Originally Posted by JohnnyFlake

Yes, I do understand that thinking, however, if you consider what Google really is, in terms of tangible assets, unless I am completely missing the boat here, that's very scary!

Haha! It truly is!



on a different note, purely speaking of technological innovation, check this out.
http://news.yahoo.com/s/csm/20080418/cm_csm/ykurzweil

Technology has increased a billionfold since the 1960s, and according to this should increase a a few trillion fold in the next 40 years.
Technological stocks anyone?

[TheEconomist]

Looking to make my monthly investments come May 1st,

Anybody have any ideas for some nice long term (5-10+ years), Dividend paying companies?

[JohnnyFlake]

Originally Posted by TheEconomist

Looking to make my monthly investments come May 1st,

Anybody have any ideas for some nice long term (5-10+ years), Dividend paying companies?

My top five, at this time, in that category, which I believe are great buys right now, in order of importance are:

Wachovia
Wells Fargo
XTO Energy
GE
Lowes

Johnny