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/biz/ - Business & Finance


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53568719 No.53568719 [Reply] [Original]

Why is S&P500 so high when fed is increasing rates?

>> No.53568731

>>53568719
Biden healed the economy.

>> No.53568734
File: 1.61 MB, 576x1024, 1674422081215735.webm [View same] [iqdb] [saucenao] [google]
53568734

>>53568719
what s your nickname on fortnite so i add you

>> No.53568797

>>53568719
because the markets are manipulated.

>> No.53568829

>>53568719
Because everyone is shorting and retail is not allowed to make money in a bear market

>> No.53568910

>>53568797
Elaborate

>> No.53568939

>>53568734
out of 10

>> No.53568951

>>53568719
because the market already flushed out enough open interest on the top
you think the rates matter? why? who do you know is buying fucking treasury bonds? it's a fucking ponzi scheme LOL

>> No.53569128

>>53568731
this, but unironically. chuds ALWAYS lose.

>> No.53569207

>>53568734
She is a ten year old.

>> No.53569227

>>53569128
>chuds ALWAYS lose.
Listen dudes, chud sounds like the lamest insult.
Let's be frank, nigger, the US is a shithole, red team blue team won't fix how the rest of the world views you mutts.
>P.S mutt is just a word for dog, it doesn't mean race mixed or non white.

>> No.53569236

>>53568719
Because it’s already priced in and the next rate increase is likely to be the last for awhile. This is a good bottom to buy into IMO

>> No.53569252

investors are basically calling the feds out on their bluff to continue to increase rates, but theres like a general consensus that inflation has peaked which contributes to investors optimism and the bullish response

>> No.53569368

>>53568719
It’s a bear market rally. It happens from short covering. This is the 4th one in the past year. You must be new here

>> No.53569398

>>53568719
we are frontrunning rate cuts obviously
do you think the market will bottom out on the day the fed announces they are done hiking and will cut? Do you really think traders and funds will not try to frontrun this event?
Are you really that dumb anon?

>> No.53569415

>>53568719
Liquidate midwits who short trade the news. It’ll go down in the long term, this just a bear market rally

>> No.53569421

>>53569398
How are they frontrunning an event that won't happen because everyone frontran it?

>> No.53569462

Greed from the 2020 bull run that won't go away. It'll end with a big crash

>> No.53569487
File: 75 KB, 1280x731, photo_2023-02-01_14-17-55.jpg [View same] [iqdb] [saucenao] [google]
53569487

>>53568719
rates already peaked in november and have been rolling over for months. market rates price in the feds rate changes before they happen.

you saw crypto and tech stocks bottom and start to moon because rates are already coming down.

>> No.53569695

>>53569462
Marketwatch says retail investors are back to their peak from the meme stock mania, probably soonish.

>> No.53569826

>>53569695
you bears are literal fucking retards.

>> No.53569842

>>53569398
this post makes absolutely no sense at all

>> No.53569858

>>53569398
theyre frontrunning unemployment and missed earning by pumping the market

>> No.53569907

>>53569826
Until we're not.

>> No.53569955

>>53569421
>>53569842
>>53569858
stay low iq /biz/
this is why you have a shitty 5 fig portfolio

>> No.53569969

>>53569955
some people are just too dumb to understand even the most basic of market dynamics. they're lost causes.

>> No.53569971

>>53568734
Uh isn't this against child labor laws?

>> No.53569974

>>53569971
>Uh isn't this against child labor laws?
it says she LOOKS like shes 10. learn to read dumbass.

>> No.53570007

>>53568719
Honestly I can't say for sure but I'd be wary of going all in. You never know what they might attempt to do on wall street. At the flick of a button stocks crash like it's late 2018 all over again. That year rates kept increasing over and over, all while stocks pumped. Then one day, for no reason whatsoever the dumps began.

>> No.53570031

>>53569368
>new here
Visit /smg/ the bullish smug anons are somehow always winning even with a year long dump. Makes me sus they're lying psyop losers who lost a ton and are trying to convince others to buy in hopes it brings back a bull market. That or their networth is 3 figures or less. The few 6 figure anons dont seem to act like that and are down a lot with their bullish holdings.

>> No.53570056

>>53569398
Look at 2018, rate cuts were annouced close to when it bottomed out. That doesn't seem to be the case here. Anyways even if you wait until they announce rate cuts, using the perma mumu logic you will still win whether you bet early or the day they announce it. After all by their logic thats gonna be ankther decade long bull run.

>> No.53570058

>>53570031
They lie out their asses there, even about matters unrelated to their portfolio. I've seen one person there trying to humblebrag about his pay by passing off a biweekly paycheque as a weekly one.

>> No.53570070

>>53569955
>t. One of those 3 figure perma mumus in smg
Your smug mumu anons never post your portfolios. The only ones with 6 figures are clearly down by a lot. A bit odd dontcha think, the ones with a ton of money arent smug or deluded but somehow your type were somehow smug for all of 2022. Just how much do you have in the market. It's less than what you make in a week waging isnt it?

>> No.53570074

>>53570070
its nice to know that my competition in markets is a collection of the dumbest fuckin morons on the planet

>> No.53570151

>>53570074
u sound angry and bitter

>> No.53570288
File: 45 KB, 1268x1168, This is the 3 month chart.png [View same] [iqdb] [saucenao] [google]
53570288

>>53568719 >>53568731 >>53568734 >>53568797 >>53568829 >>53568910 >>53568939 >>53568951 >>53569128 >>53569207 >>53569227 >>53569236 >>53569252 >>53569368 >>53569398 >>53569415 >>53569421 >>53569462 >>53569487 >>53569695 >>53569826 >>53569842 >>53569858 >>53569907 >>53569955 >>53569969 >>53569971 >>53569974 >>53570007 >>53570031 >>53570056 >>53570058 >>53570070 >>53570074 >>53570151

>> No.53570321

>>53570031
The fact that they never post their portfolios says it all, I’m shorting now and freely admitting that I’m down 76% since the start of the year but I’ll stick it out for a few months if I have to. I think inflation data in January showing we’re not going down in a straight line and layoffs happening in the millions this year will finally spook some people.

>> No.53570356
File: 457 KB, 1097x1289, thumbownnothingklaus.jpg [View same] [iqdb] [saucenao] [google]
53570356

>>53570288

>> No.53570504

>>53570321
>I’m shorting now and freely admitting that I’m down 76%
topkek. the absolute state of bears.

>> No.53570505

>>53570288
....ok? and?

>> No.53570513
File: 23 KB, 480x360, 9f0bdf62311485b859e0078e8412585a-imagejpeg.jpg [View same] [iqdb] [saucenao] [google]
53570513

The fed isn't increasing rates nigger.

>> No.53570534

>>53569398
B00kmarked

>> No.53570546

>>53568719
Gamma Squeeze!

>> No.53570547

>>53570288
looks incredibly healthy

>> No.53570557

>>53570504
I’ll be fine, I have rich parents and two full-time jobs at home right now. I’m also morally correct because the guy in the White House you’re repping is a pedophile and Dems will never win in 2024 should things keep going as they are now with every leftist in silicon valley losing their jobs. Feel free the buy Tesla when it’s up 75% in a single month though yeah, dumbass.

>> No.53570648

>>53570557
>morally correct
this has gotta be the dumbest cope i have ever heard from someone who is underwater on a position because they were WRONG

the absolute state of fucking retards here.

>> No.53570700

>>53569971
Child labor is the sole reason why modern family demographics became so fucked.
It changes the perception that having children is a desirable thing into having children is fucking expensive.

That and the age of consent are jewish tricks that land us into this dysfunctional society

>> No.53570724

>>53570648
I was literally up just two weeks ago. Just because permabull retards like you can’t understand the concept of spikes during a downtrend doesn’t matter to me. You think I wouldn’t just sell the money I have in there if I was the slightest bit worried? I bought two more contracts today and they don’t expire for months out. If we go back to even late December levels that’s almost a six figure gain for me doing absolutely nothing. Screw yourself, mutt.

>> No.53570833

>>53570700
>Child labor is the sole reason why modern family demographics became so fucked.
So how does that work with places like China and Korea which use/used (until recently) but now have the lowest fertility rates in the world?

>> No.53572409
File: 227 KB, 1638x2048, 1670898139150172.jpg [View same] [iqdb] [saucenao] [google]
53572409

>>53568731
Works like a charm

>> No.53572544

>>53570724
You sound so unbothered by the prospect of losing everything shorting the market I kinda respect that

>> No.53572550

>>53568719
because it's increasing?

>> No.53573147

>>53568734
she is a ten.

>> No.53573155

>>53568731
Thank you Uncle Joe

>> No.53573290

>>53568719
In a word: denial.
I blame the Fed, the US government, and its corporate media lap dogs for for refusing to tell the truth about the economy and what it means for the stock market. None of them are telling the normalfags the truth and the normalfags are going to get slaughtered.
Ironically, only the investment banks are telling the truth and nobody believes them.

>> No.53573315

>>53570288
oooo this is gonna be fun :)

>> No.53573341

>>53568719
The jobs numbers came back high

>> No.53573435

>>53570031
>/smg/ bulls
I larp as an over the top delusional permabull in every single thread. Why do I do this? Because if even one reddit tourist listens to the bullish "advice" and loses money it was worth it. The vast majority of those euphoric bull posters are very clearly bobos in disguise.

>> No.53573526

>>53573290
This lol. All major banks released a statement like that over the past two months.

>> No.53573540

>>53568734
BROKENBIGTOE88

>> No.53574120

>>53568719
No idea

>> No.53574301
File: 610 KB, 1009x577, boomerwisdom.png [View same] [iqdb] [saucenao] [google]
53574301

>>53568734
Imagine how much money she can save.

>> No.53574319
File: 297 KB, 844x938, 1671028608289276.jpg [View same] [iqdb] [saucenao] [google]
53574319

>>53569236
>the next rate increase is likely to be the last for awhile

>> No.53574352

>>53570288
Basterd bitch

>> No.53574422

>>53570288
It's probably still around 1220pts if you'd adjust for 15 years of exuberant debt creation (money printing) & QE.

>> No.53574496

>>53572409
the top half of his head looks like Mao

>> No.53576526

>>53569487
Dude, the market isnt cheap at all. What is there to moon about?

>> No.53577086

>>53576526
>Dude, the market isnt cheap at all. What is there to moon about?
define cheap.

>> No.53577158

>>53577086
P/E ratio above 20
Its not as high as it was, but not anywhere near cheap

>> No.53577223

>>53577158
Especially now with higher interest rates, these high P/E valuations lose their appeal

>> No.53577244

>>53574301
>invest in the s&p once you land your first at 10
>it'll be worth 100,000,000 in 80 years (not adjusted for inflation)

>> No.53577265
File: 21 KB, 535x577, goat.jpg [View same] [iqdb] [saucenao] [google]
53577265

>>53568719
because there is still a massive amount of excess liquidity that needs to be drained from the economy.

basically, the terminal rate needs to go above the (real) inflation rate

>> No.53578817
File: 52 KB, 978x598, changes in part and full time workers feb 23.jpg [View same] [iqdb] [saucenao] [google]
53578817

>>53573341
lol

>> No.53580000

>>53578817
So what you're saying is that full time job losses have bottomed out in October and are on their way to print monthly green candles again?
The US labor market simply can not be stopped. It's not just firing on all cylinders, but firing on all of the cylinders.

>> No.53580053
File: 67 KB, 1168x561, Screenshot 2023-02-05 at 03-13-03 Assets Total Assets Total Assets (Less Eliminations from Consolidation) Wednesday Level.png [View same] [iqdb] [saucenao] [google]
53580053

>>53577265
This, but unironically.
Check picrelated. Can't say they aren't doing it.
The FED is mostly letting the holdings on their balance sheet mature, which means the financial markets finally have to pony up the dough for the government to refinance their debt (or in other words repay outstanding debt to the FED by issuing new debt into the financial markets)
The reverse repo facility will eventually go to zero as well.
Also, there will not be any rate cuts into a red hot economy.
We'll be entering the 2030s with a FED funds rate well above (positive) 7%.

>> No.53580062

>>53577158
>p/e ratio
lmao

>> No.53580074

when the worldwide consensus (including the mouthbreathers on biz) is that something is going to happen (ie recession), it's almost certainly not going to play out that way, or at the very least is already reflected in the price

>> No.53580077

none of you fucking retards have addressed that this >>53569487 is the correct answer to OP's question

>Why is S&P500 so high when fed is increasing rates?

because rates have already peaked and are dropping.

>> No.53580087

>>53574422
This. People look at the graph and think purchase power is the same as it was in 2009

>> No.53580091

>>53580062
>valuation doesnt matter

>> No.53580096

>>53580077
Rates haven't peaked,
nothing goes up or down in a straight line.

You may not like this,
but this is what normal market behavior looks like.

>> No.53580099

>>53580091
valuation is subjective and you are an idiot. do you think that the best performing hedge funds are looking at p/e ratios?

no, dumbass, only you are becuase you read it in some gay fucking book. you probably didnt even read the book actually, you read that it was written in a book.

>> No.53580100

>>53580096
>Rates haven't peaked
lol fucking retard. have fun shorting or sitting in cash.

>> No.53580102

>>53580099
Do you even know what P/E ratio is, you retarded fuck?

>> No.53580109

>>53580102
i have forgotten more about FA than you will ever learn in your life. stick your price to earnings bullshit up your ass. only retail losers that lose money use that gay shit.

>> No.53580121

>>53580109
There is nothing subjective about P/E ratio.
Especially with rising interst rates a high P/E ratio doesnt make sense

>> No.53580149

>>53580121
>Especially with rising interst rates
are you a literal retard? >>53569487
rates are already coming down. look at the yields. the market prices in the feds actions long before they do them. just like how yields started to increase before the fed started raising rates because the market sniffed out their lies about inflation being transitory. it works the same the other way

you fuckin morons are sitting here banging your heads against the wall wondering "WHY IS THE MARKET PUMPING WHEN THE FED IS STILL RAISING RATES WAHHHHHH"

fucking idiot, its literally priced in already thats why. but, surely its the market thats wrong and not your dumbasses.

>> No.53580156
File: 1017 KB, 250x262, 1661791735422673.gif [View same] [iqdb] [saucenao] [google]
53580156

>>53580087

>> No.53580214
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53580214

>>53580149
Rates have exploded far above where they were a few years ago. They are eating their way through the economy. Thats why we're sseeign all the recent misses even from big names.
Market valuation with regards to earning is still high.
You're just babbling

>> No.53580220
File: 811 KB, 1920x2716, geechiis-artworks-cyberpunk1.jpg [View same] [iqdb] [saucenao] [google]
53580220

>>53568719

The market is trying to call Powell out on his bluff. Watch the headlines, everything usually happens in reverse.

When companies are laying off workers and shutting down stores, the market pumps because they think the FED is going to pivot and start doing QE, plus lowering rates.

If you saw, yesterday the government claimed unemployment tanked and since YOY inflation is still above the FED's 2% target rate, it's very possible they'll hike over 5% within the next few months. This causes the markets to dip.

The market barely moves on fundamentals anymore, it's all about liquidity.

I'm not touching any tech, or consumer discretionaries until the S&P 500 goes below 3500, maybe even 3200.

>> No.53580312

>>53580220
>When companies are laying off workers and shutting down stores, the market pumps because they think the FED is going to pivot and start doing QE, plus lowering rates.
Companies can not lay off workers fast enough for unemployment to rise.
All of these layoffs, beginning with the tech layoffs, are going to be absorbed by this red hot labor market with literally more job openings than unemployed people (still).
Not a single big tech layoff will hit the (un)employment statistics because either the people find new work immediately or move back to their countries of origin.
It's that simple.

Just look at the picture in >>53580214.
Judging by their savings, Americans simply can't afford not to be employed any longer.

>much higher
>for much longer
is what's coming.

>S&P 500 goes below 3500, maybe even 3200
Maybe in the later years of this decade. Sans a catastrophe or another "shock" like the plandemic it is very likely an impossibility for the markets to dip meaningfully lower than the 2022 "lows."
There's simply too much dough in the system.

>> No.53580392

>>53568719
Jew magic

>> No.53580396

>>53580312
that must be the stupidest post
>people are broke
positive?
>people lose jobs?
positive?

>> No.53580416
File: 114 KB, 1009x768, world more gooder.jpg [View same] [iqdb] [saucenao] [google]
53580416

>>53580396
lol,
lmao even.

>> No.53580434

>>53580416
Thats you

>> No.53580446

>>53580434
No, that's (unfortunate) reality.

>> No.53580454
File: 278 KB, 750x1171, 1675370594886127.jpg [View same] [iqdb] [saucenao] [google]
53580454

>>53580446
Only until it doesnt

>> No.53580473

>>53568734
>suddenly

>> No.53580512

>>53580454
literally
>two more weeks
to
>any day now
since the invention of interest on debt.
You may not like this, but the chart you have posted shows nothing out of the ordinary.
This is how the current (((System))) is designed.
The (((System))) is not designed to collapse in on itself without remaining its grip on humanity or even getting stronger in the progress.

>> No.53580532

>>53580473
>unexpected
>for no reason at all