stock market was up today...

#9,876
#9,876
Rasputin_Vol said:
The Bretton Woods agreement after WWII was negated after Nixon closed the gold window in 1971. After that, the dollar became a fiat currency that is backed by oil. If you wanted to buy oil after the Petrodollar agreement was made, you had to purchase oil in dollars.
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Post-closure of the gold window, the USD is still the world's reserve currency, and that's because we set the rules after WWII. That keeps a constant bid under the dollar...oil is priced in USD because it is the world's reserve currency, not the other way around. That's why we can run really high trade deficits, print money, etc. and seemingly "get away" with it.

The dollar is purely fiat, as are all currencies issued by governments. It isn't backed by anything, be is oil, gold, or anything else.
 
#9,881
#9,881
Shouldn't these retailers see a reversal in sales soon? How long are people going to keep stocking up on food?

 
#9,882
#9,882
Velo Vol said:
Shouldn't these retailers see a reversal in sales soon? How long are people going to keep stocking up on food?

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Definitely strange. I still can't find TP or chicken. It's hit or miss with beef. At some point people are not going to have room for any more.
 
#9,883
#9,883
Velo Vol said:
Shouldn't these retailers see a reversal in sales soon? How long are people going to keep stocking up on food?

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I don’t know. But we could see average US Households carrying more “inventory” going forward, keeping retail sales up for a time.
 
#9,884
#9,884
rjd970 said:
Definitely strange. I still can't find TP or chicken. It's hit or miss with beef. At some point people are not going to have room for any more.
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I really can’t understand the toilet paper. Where the hell is it all going? It is literally never on the shelves, anywhere.
 
#9,885
#9,885
Velo Vol said:
Earnings must be surprising to the upside.
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We're also starting to see some divergence between the companies hit hardest by this (airlines/travel) and the rest of the market. Remember at the first the selling was very indiscriminate. Now DAL, UAL, AAL are either back at the March lows or in the case of AAL, have made new lows. Cruise lines and hotels in a similar position. However the broader market is still well off its lows.

Ultimately I think that's bullish too, although I still think we could see a test of the lows again at some point. Perhaps we're just going to bounce much further than I thought before doing so. If we get and stay above about 2640 in the S&P, we could run all the way up to 2800 before another pullback. There are definitely going to be some sectors, other than the airlines/travel, where those earnings do not snap back and a recovery takes longer.
 
#9,886
#9,886
Velo Vol said:
Shouldn't these retailers see a reversal in sales soon? How long are people going to keep stocking up on food?

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The line for a grocery pickup spot was 10 cars deep yesterday. The line to get into the store was 50 people. I think people don't realize what it takes to feed a family full time and are running out faster than normal. I think we finally have it figured out. We have plenty of meat but snacks are disappearing at a rapid rate

The idiots standing in line are just looking to get out of the house. I don't understand them
 
#9,887
#9,887
85SugarVol said:
I really can’t understand the toilet paper. Where the hell is it all going? It is literally never on the shelves, anywhere.
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I can't understand it either. We all had enough before this. If everybody just bought what they did before and that was enough, we would be fine.
 
#9,888
#9,888
85SugarVol said:
I really can’t understand the toilet paper. Where the hell is it all going? It is literally never on the shelves, anywhere.
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I don't get it either, but I presume (hope) it isn't being wasted...it isn't like it goes bad.

What makes me sick is the amount of fruits and vegetables that are being thrown out. People are going to the grocery stores and buying way too many of them, then they're going bad and throwing a ton of it away. People are so stupid - there's no need to hoard anything, especially stuff that is perishable. The trucks are still running and the grocery stores are still open.

Perhaps people eat out way more than I realize? My wife and I only try and eat out a couple times a week, usually on Friday and Saturday nights. Therefore the amount of groceries we buy on a weekly basis really hasn't changed. However if you eat out 10x a week, and you need to cut back because you've lost your job or are afraid you might, I guess that does lead to you needing to go to the grocery store and buy more than usual, and if enough people start doing that you get shortages. That doesn't explain the shortage in toilet paper though.
 
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#9,890
#9,890
utvolpj said:
The line for a grocery pickup spot was 10 cars deep yesterday. The line to get into the store was 50 people. I think people don't realize what it takes to feed a family full time and are running out faster than normal.
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True. We've had a pretty big shift from eating out to eating in.
 
#9,894
#9,894
rjd970 said:
That actually makes total sense. There are probably pallets and pallets of the industrial stuff we use at schools and work that are simply sitting on the docks of the manufacturers.
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Sitting in school supply rooms right now and schools are closed (some for the rest of the year). That was our inventory for rolling yards back in the day.
 
#9,895
#9,895
rjd970 said:
That actually makes total sense. There are probably pallets and pallets of the industrial stuff we use at schools and work that are simply sitting on the docks of the manufacturers.
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The just-in-time supply chain concept has been disrupted by the sh***y, low life hoarders.

BTW, 2 weeks ago the bread shelves were all but empty at Food City. Today they have loaves for 20 and 25 cents, so apparently now the bakers have overshot on the supply side.
 
#9,897
#9,897
Ok so is this rally real? I am still seeing all kinds of negative outlooks for 2nd qtr GDP falling by 35% and 14% unemployment. I realize the market is forward looking, but THAT far forward looking?
 
#9,899
#9,899
NorthDallas40 said:
Ok so is this rally real? I am still seeing all kinds of negative outlooks for 2nd qtr GDP falling by 35% and 14% unemployment. I realize the market is forward looking, but THAT far forward looking?
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I think it's pretty clear the equity market priced in the complete abomination that Q2 GDP is going to be, and its resulting impact on earnings. A 37% peak-to-trough decline in less than a month did that. Remember, that was the fastest 20% and 30% decline from a high ever. The speed and velocity of that selloff was unlike anything anybody had ever seen, even faster than '08, the '87 crash, and 1929. A lot of bad stuff was priced in at that point, no doubt.

Having said that, the bounce does seem overdone and I think it tests the lows at some point. That selloff was so fast that we got really stretched to the downside - all the supply was exhausted...at least for the time being.
 
#9,900
#9,900
05_never_again said:
Having said that, the bounce does seem overdone and I think it tests the lows at some point. That selloff was so fast that we got really stretched to the downside - all the supply was exhausted...at least for the time being.
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Where are we?

Market-sentiment-graph.png
 
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