Originally Posted by
Aviatormar
Ok, well this is going to sound dumb, but this is one of the best threads I have ever read on APC. I'm 22 and am dying to learn how the stock markets work and the forces behind them. Please keep this stuff coming.
Much of it is pure speculation, nothing more. Ultimately, companies are going to try and put out as much info as they can to boost their stock. It's not a really good bearing on how a company is really doing as numbers can be heavily manipulated and depending on the board's agenda, can greatly mask a long-term problem.
You want to see screwed up, take a look at petroleum futures. Somebody sneezes wrong and prices skyrocket. The Katrina aftermath was nothing more than the excuse they were looking for to make more money. Gas prices have gone up, and so have big oil's profits. Coincidence?
I really don't know the ins and outs of it all, however it's cyclical, like aviation. It also relies heavily on the economy. I have a hard time believing that with the prices of commodities increasing that it hasn't had an effect on the average American's spending and I think the smoke and mirrors are finally starting to clear out. People who bought homes on Adjustable Rate Mortgages, new cars, and all the neat stuff that goes with our consumer culture are having it catch up to them. All of a sudden your mortgage goes up a few hundred bucks, it now costs $70 to fill the tank of your SUV when it only cost $35 a couple years ago and you have a long commute to work from your home in the suburbs. Bubble is bursting. Foreclosures are up, and sub-prime lenders are taking it on the chin.