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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: Catastrophe theory, instability, risk||Date: 10/10/2012 1:16 AM|
|Author: yodaorange||Number: 405654 of 502890|
Wendy said: The risk is high of a sudden crisis.
Wendy, I will postulate that things MIGHT be different this time around.
The consensus view back in March 2009 was that the financial outlook was somewhere between bad and hopeless. The SP 500 hit a low of 666. The Dow Jones hit a low of 6516. Both the SP and Dow have more than doubled since then. The US was losing ~800k jobs per month at the time.
So what changed? What turned the SP upward?
I suggest two main contributors to the turning point:
1) Treasury/Fed dec