The Stock Market gains 488 points -- A sign things are getting better?

[Sandro]

Yep, you heard right. Today the Dow got back 488 of the points that were lost since this bear market began. This (http://www.foxnews.com/story/0,2933,58604,00.html) news story has more info.

Subsequently, some good news. Adelphia, a now bankrupt cable company, had its executives taken away in squad cars early this morning. Congress also seems to be coming to a compromise on a bill to fight corporate fraud. This events might have helped Wall Street but I don't know.

My question to you: Is this a sign of good fortune or are people getting too optimistic?

[sun]

The truth is no one knows....It is possible that things will get better, especially in the market..But many say this is what they call (and I don't mean to offend, this is a stock market term) " a dead cat bounce" It was bound to rebound some, because of such a poor condition that it was in.....Many people have lost much of their saving in the stock market on stocks like " Enron, Global Crossing, etc. tonite AOL announced it was under investigation......If you have lost a lot, you will not spend as much....Therefore, the economy may get worse, in spite of the stock markets rise today.. As I said, no one knows the future, in the past, it has varried on how long it took for things to get better, from as short as a few months. to years, I am hoping the economy recovers soon, and this will be thinking about last years snow. Let's hope for the best, but I really don't know, and no one else does either....Stuart.

[Sheamon]

Well we had a similar gain last week (although not as big) only to watch things drop again. Lets see how things turn out tomorrow :p Congress passing any bills won't help, the more laws that are passed and the more government intrudes into capitalistic society the more the stock market will tank. Prosecuting the criminals should do wonders though, the thing will really blow up if they get away with it.

...I do think things will go down tomorrow though with us seeing Congress overturn the will of the people yet again by kicking out the only member of Congress I had any respect for, Traficant. :rolleyes: :p

[TimTwoFace]

The stock markets don't worry me, because everyone knows that, in the long run, no matter how long it may be, things ALWAYS end up gaining.

What worries me more often are the eternally fluctuating exchange rates of the countries of the world. :P

-Tim

PS - I've never gotten this one straight...which is the symbol of a gain? The bear or the bull? And when/why were these symbols adopted, anyway?

[VashTheStampede]

I do think things will go down tomorrow though with us seeing Congress overturn the will of the people yet again by kicking out the only member of Congress I had any respect for, Traficant.
Hey I have respect for Traficant to but sometimes things have to be done. You have to admit he is a corrupt jerk. Sure most of congress is but he got caught so he must pay, do we really want a person in congress who is in jail? I also think he is a little crazy, thinking everyone is out to get him. It may be true but you don't go around saying it. Sure he is entertaining but once you are convicted of 10 FELONIES you should not be allowed to decide the laws of the country. I respect him but not enough to believe he should remain in congress.

As for the market, who cares? You should only worry if you are in for the short-term, the economy is doing great believe it or not and the market will catch up sooner or later. If my financial hero Neil Cavuto, and my congressional heros Tom DeLay and Trent Lott aren't worried neither am I.
PS - I've never gotten this one straight...which is the symbol of a gain? The bear or the bull? And when/why were these symbols adopted, anyway?
An up market is a Bull market and a down market is a Bear market. I don't know why they were adopted.

[Pilmedium]

Originally posted by Sheamon
Well we had a similar gain last week (although not as big) only to watch things drop again.

Exactly the point. The Nasdaq was down 50 points today. Even the short-term investors can't base an upcoming change on one day's changes.

[gtracer72]

Please remember that the stock market is not the entire economy. ;)

[Pilmedium]

Originally posted by gtracer72
Please remember that the stock market is not the entire economy.

True, but it is enough to influence people's opinion on the entire economy. I heard about people considering switching to terribly inconvenient investments, at the same time as complaining about their losses.