HOW CAN THE 2010 STOCK MARKET GO UP WITH THE U.S. IN BIG TROUBLE?

Posted by stocker on February 9, 2010 in Stock market basics | Short Link

Even in a bad economy with a stock market that is heading down, there are always some stocks that have a great story and go up. Of course this is the reason investors are always looking for the best stocks to buy right now today, in hopes of finding that diamond in the rough that will buck the downward trend.

Generally though, when economic times are tough, so are the fates of most companies and stocks. After a solid 2009 for the market that saw it head steadily higher after about February, how can things continue on with the state of the economy looking so awful?

Right now the Dow is treading water and today it has pulled back above 10,000 which is a number that really has no significance at all. 2010 has been an up and down ride so far and it looks to me like there have to be more uncertain times ahead which will cause the market to go down.

President Obama keeps spending our tax money like there is an endless supply of it. He keeps promising better things ahead and yet things don’t get better. The new Obama jobs bill he just announced is probably just going to drain more of our taxpayer’s money and give us little in return. Companies continue to lay off workers and with unemployment remaining around 10%, is there really any reason to be optimistic about the near future?

When the economy is doing poorly, the stock market has to follow eventually. When company profits are down and there is uncertainty everywhere, investors will stop putting in new money sooner or later. While this has only happened a little this year, it seems like the bad data coming out every week will eventually spook investors.

The Dow has had a good run up for the last year and investors who benefitted will decide to take profits if things continue to look scary. With Obama and the Democrats in charge throwing our money around like drunken sailors, how can anything get better anytime soon? Here at Stock Market For Dummies, we want to invest in new stocks but are just too scared right now. How do you feel about the economy and the stock market?

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