Topic: Economy is dying but market prices are going up? (Read 366 times)
This is not a problem but if the economy dies and the market prices rise then working on crypto can improve the economy of a country But if both of us die together everything will be damaged and development is not possible. The market has been a lot better than ever before.
Man the prices going up is something I really can’t explain. Market prices has recovered just a bit. Bitcoin started recovering after falling to as low as $3900 and then it started recovering despite that the pandemic is still on. I can’t tell why the price has been going up at this time and that’s the same thing with other markets like Tesla, Gold, and Silver.
I don’t know why the market went up a bit, and I have tried to do my research and discover the factors behind this but I couldn’t come across any valid reason. Let’s just take it that the price is simply going up lol.
I don’t know why the market went up a bit, and I have tried to do my research and discover the factors behind this but I couldn’t come across any valid reason. Let’s just take it that the price is simply going up lol.
strange isnt it ? it happens all the time on all kinds of crisi like disasters , wars and now pandemic .
i think the simple explanation to that is because stocks/items now are hard to produce and also now indemand so they dont have a choice but to up thier prices but for me i agree with you op , they shouldnt still do this idea because many people suffers more evenly .
not only on regular stocks but crypto markets are now coming to rise too but that is fine and not really a problem
i think the simple explanation to that is because stocks/items now are hard to produce and also now indemand so they dont have a choice but to up thier prices but for me i agree with you op , they shouldnt still do this idea because many people suffers more evenly .
not only on regular stocks but crypto markets are now coming to rise too but that is fine and not really a problem
Honestly they are not "bouncing back up" just yet, they are simply reacting to what has government acted like and the whole world knows that a republican ruled USA with both president and the senate majority, they will do absolutely everything in their hand to recover from this for the big banks, they would rather have millions of people dead on the streets, riots everywhere and people killing each other for food, as long as the corporate america could make a dollar out of it.
This means, since we all know that they will do anything to make a profit and not let any of those companies down, that means we could invest, maybe tomorrow maybe a year from now or maybe some further time line, eventually there will be a time when these corporations will recover with government help, so why not put some money into it and wait.
This means, since we all know that they will do anything to make a profit and not let any of those companies down, that means we could invest, maybe tomorrow maybe a year from now or maybe some further time line, eventually there will be a time when these corporations will recover with government help, so why not put some money into it and wait.
Not everyone in this world runs out of money due to lock down, probably who have lot of savings has the best opportunity to start investing again that is why after the crash the market seems recovering just because new people entering into the market.
I have only two reasons that I think of prior to this happening:
1) Maybe because daytraders, whether whale or not, got more free time on their hands playing with their assets. Well, I am aware of the fact that many are getting infected across the globe everyday. However, it is reasonable to conclude that most of the number of cases came from the poor — those people who got weaker immune system due to lack of proper health care. So if you are rich or even just lying in the middle then most probably you won't get affected bu rhe pandemic. You have a very high chance to live "normally" (aside from staying at home all the time) like you used to thus have the ability to do your daily crypto business
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2) At the end of the day, crypto sphere is a different world after all and excluded from real world scenarios.
Nevertheless, let's cherish this moment. At least we knew that there are still good news coming behind all the miseries we are experiencing in the first quarter of 2020
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1) Maybe because daytraders, whether whale or not, got more free time on their hands playing with their assets. Well, I am aware of the fact that many are getting infected across the globe everyday. However, it is reasonable to conclude that most of the number of cases came from the poor — those people who got weaker immune system due to lack of proper health care. So if you are rich or even just lying in the middle then most probably you won't get affected bu rhe pandemic. You have a very high chance to live "normally" (aside from staying at home all the time) like you used to thus have the ability to do your daily crypto business
. 2) At the end of the day, crypto sphere is a different world after all and excluded from real world scenarios.
Nevertheless, let's cherish this moment. At least we knew that there are still good news coming behind all the miseries we are experiencing in the first quarter of 2020
. 
I don't think that would be the case, there are still a lot of functioning businesses that is why there is progress, this economy plummet is just temporary problem it will be relieved and we just have to wait for it.
If Jim Cramer is to be believed, hedge fund managers and others have utilized the media to control market prices for a very long time.
Hedge funds are into bitcoin since at least 2017. They use it as a reserve asset to cover their positions in the fiat gambling machines. sounds bullish tbh.
The death rate from COVID-19 isn't all that high compared to other causes of death, so keep that in perspective. Lots of people die from seasonal flu every year, and other infections, and all sorts of other causes. It isn't as though coronavirus kills everyone who gets infected with it.
accounting for asymptomatic cases, it's probably 5-10 times as deadly as the seasonal flu. https://www.cnn.com/2020/03/30/health/coronavirus-lower-death-rate/index.html
the big difference is the long and intensive hospitalization that coronavirus requires. we're talking about weeks of hospitalization for like 20% of people who contract it. that's what all the panic is about---overflowing hospitals with a huge shortage of beds and ventilators, as well as protective gear for healthcare workers. if the curve isn't flattened, it could overwhelm the healthcare system.
Economy is dying but market prices are going up?
There is a virus pandemic, more people are dead every day, even more people losing their jobs, there is a lockdown and people dont work.
So how on earth are Market prices (Dow Jones) going up/rebounding? IF anything, they should be dropping because people need basic life needs to survive pandemic, lockdown and isolation. They cash-in whatever they have.
There is a virus pandemic, more people are dead every day, even more people losing their jobs, there is a lockdown and people dont work.
So how on earth are Market prices (Dow Jones) going up/rebounding? IF anything, they should be dropping because people need basic life needs to survive pandemic, lockdown and isolation. They cash-in whatever they have.
Stocks are not market prices. Stocks are stocks. And prices of stocks will go up when people will have more money. Loans are at almost zero interest rate. People have same or more money then few montsh ago. There is no reason why stocks price would decrease further.
And last, the economy isn't dying. It's taken a hit, but this situation we find ourselves in is not going to last forever. I think investors realize this and that's why the stock market hasn't totally collapsed. Don't know if it's the optimist in me, but I don't think things are as bleak as they're being portrayed.
The economy is simply facing a whole new challenge, and no one knows when or how the situation will be resolved - it is only certain that COVID-19 will do great economic damage in the next 3-4 months, and then the post effects will come in the form of a new recession. There are still unknowns as to when the vaccine will be available, and whether the virus will reactivate with the next cold season.
However, some people take advantage of this situation because investing is more profitable when the blood is on the streets, and I think they help a lot to keep the market from sinking deeper. Governments around the world are also taking measures to save their economies, because only those who react quickly can hope to recover in a reasonable amount of time.
With almost 1 million infected (confirmed) and close to 50 000 deaths COVID-19 is far less deadly than seasonal flu so far, but it all depends how long the pandemic will last, that is, how long the governments of the world manage to keep the patient (world economy) alive. I'm not a pessimist by nature, but current markets don't work by any common principles - they are already artificially maintained with huge amounts of fresh money, which is not sustainable in the long run.
There is a virus pandemic, more people are dead every day, even more people losing their jobs, there is a lockdown and people dont work.
The death rate from COVID-19 isn't all that high compared to other causes of death, so keep that in perspective. Lots of people die from seasonal flu every year, and other infections, and all sorts of other causes. It isn't as though coronavirus kills everyone who gets infected with it.Second, the job loss might be a temporary thing and I suspect that whenever this shelter-in-place mandate is rescinded, people will find their old jobs waiting for them. The only question in my mind is how long that's going to take. If it goes on long enough, it certainly could do major damage to the economy.
And last, the economy isn't dying. It's taken a hit, but this situation we find ourselves in is not going to last forever. I think investors realize this and that's why the stock market hasn't totally collapsed. Don't know if it's the optimist in me, but I don't think things are as bleak as they're being portrayed.
Well what you said might be true because I did read a news about Ukraine where to keep the economy of the country alive and to maintain the dollar to UAH RATIO , the government was advising the banks to sell the stocks they are holding of dollars so that they will be able to neutralize the market price and escape the recession (slightly),
Well unfortunately this did not work completely for the Ukrainian government but if the country you are talking about is showing steady growth then it might be working amazing for them .
Well unfortunately this did not work completely for the Ukrainian government but if the country you are talking about is showing steady growth then it might be working amazing for them .
If Jim Cramer is to be believed, hedge fund managers and others have utilized the media to control market prices for a very long time.
Hedge funds are into bitcoin since at least 2017. They use it as a reserve asset to cover their positions in the fiat gambling machines.
Jim Cramer of CNBC's Mad Money fame once discussed tactics utilized to manipulate market prices as a hedge fund manager. This is what he said:
....
The market rose on news claiming china had its pandemic contained. News of the federal reserve injecting capital into flagging markets. News of a bailout bill being signed. And similar events where it seemed circumstances might improve. The media exerts the strongest influence on valuation.
If Jim Cramer is to be believed, hedge fund managers and others have utilized the media to control market prices for a very long time.
Quote
Cramer stated that everything he did was legal, but that illegal activity is common in the hedge fund industry as well. He also stated that some hedge fund managers spread false rumors to drive a stock down: "What's important when you are in that hedge-fund mode is to not do anything remotely truthful because the truth is so against your view, that it's important to create a new truth, to develop a fiction."[34] Cramer described a variety of tactics that hedge fund managers use to affect a stock's price. Cramer said that one strategy to keep a stock price down is to spread false rumors to reporters he described as "the Pisanis of the world," in reference to CNBC correspondent Bob Pisani, who Cramer insinuated was able to be manipulated, saying "You have to use these guys." He also discussed giving information to "the bozo reporter from The Wall Street Journal" to get an article published.[35][36] Cramer said this practice, although illegal, is easy to do "because the SEC doesn't understand it."[37] During the interview Cramer referred to himself as a "banking-class hero."[38]
https://en.wikipedia.org/wiki/Jim_Cramer#Admission_of_market_manipulation
https://en.wikipedia.org/wiki/Jim_Cramer#Admission_of_market_manipulation
....
The market rose on news claiming china had its pandemic contained. News of the federal reserve injecting capital into flagging markets. News of a bailout bill being signed. And similar events where it seemed circumstances might improve. The media exerts the strongest influence on valuation.
If Jim Cramer is to be believed, hedge fund managers and others have utilized the media to control market prices for a very long time.
I think it is only a bounce and I think it will create another lower lows, the prices is still down so do not get excited. There is opportunities especially for those who want to short sell but the market is really volatile so it is better if we will only put 10% of our portfolio if we want to enter. There is still crisis so for sure that the prices in stocks, indices and also cryptocurrencies will still go down.
There is no limit to what the markets can achieve when you can just print monopoly money endlessly to prop them up. The amusing thing is that even with all this stimulus, they still dropped more than bitcoin did.
bitcoin is still down a lot more than stocks, at least all the major indices---not surprising since it crashed almost 65% from the february high! the bounce has been more impressive though, i'll give it that.
There was no real rebound, more like a dead cat bounce
+1. it was a sucker rally. the effects of the bailout news are wearing off and investors are back to selling due to this ongoing stream of bad news---further expected lockdowns, increased unemployment, recession, etc. things are looking rather grim.
so people are trading to make money.
They know how the markets work.Buying while they can and while these stocks are at its bottom. Stock investors don't want to miss this opportunity of buying.
What feels weird to me is one simple fact.
So how on earth are Market prices (Dow Jones) going up/rebounding?
So how on earth are Market prices (Dow Jones) going up/rebounding?
There was no real rebound, more like a dead cat bounce
It took promises after promises and stimulus packages to finally stop the crash and make Dow raise up by 4000 points, after dropping more than 10 000.
But since then, it's down again, losing 1500 of what it managed to recover and today is just as bad.
No matter how much cash you inject if the perspectives are bad nobody will keep those stocks, no government has the power to continuously print money to keep the market up while companies shut down production to minimum levels. It was an almost desperate move and I think the timing was wrong, maybe they should have waited for it to crash more, to wait for at least some good signs of the manufacturing and consumption picking up and then inject the money.
hopefully many countries will begin to understand the use of cryptocurrency. after this epidemic ends hopefully the authorities believe that the use of digital currencies is safer for health, so that the spread of the virus can be used as it is today.
Why are digital currencies safer than card or phone payments?
You're fooling yourself thinking that in a crisis like this people and governments will rush buying coins.
and we as bitcoiners will benefit more, because we are starting to invest now
In the end, that's all it matters, doesn't it?
I want to believe its because of President Donald Trump's stimulus package to the people and the economy, so there is some hope that people are not going to starve to death after all, so people are trading to make money.
Op, you have already given the answer - the market is rebounding partly because of the external stimulus injected by the government. Government is providing additional liquidity to the market as well as to the companies. That's why we see this kind of rebounding.
Also, there is something called "fair value" in stock market. We know a lot of companies had to stop production because of this pandemic so their stocks are trading below their "fair valuation".
But we all know that the situation is temporary and these companies will start operating as soon as this is gone. So people with money, are buying stocks of such companies while they are cheap. Such kind of buying is also another reason why the market is rebounding.
Also, there is something called "fair value" in stock market. We know a lot of companies had to stop production because of this pandemic so their stocks are trading below their "fair valuation".
But we all know that the situation is temporary and these companies will start operating as soon as this is gone. So people with money, are buying stocks of such companies while they are cheap. Such kind of buying is also another reason why the market is rebounding.
This can be the reason for the increase in price. The stimulus will help certain families enough that they can have excess to invest in bitcoin and other coins. We can expect more investment as more countries too do their stimulus support. It is a time for hodl more coins.
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