Quote:
Originally posted by Tyrone_Slothrop
sgtclub: if the jobs report had been better, the market might have broken the seal at 10,000, and would have snowballed, and we'd be at 10,500 soon
me: that's silly
sgtclub: if you think that's silly, you must have thought the internet bubble was rational
me: yeah, that follows
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Not quite.
me: if jobs report better, dow would likely have broken 10,000. 10,000 has been an irrational barrier which, if broken, could result in significant market gains. I used 10,500 as an example. With signigicant market gains, valuaions rise and the cost of money cheapons, leading to incentive to raise money. Companies flush with money will use it to expand. Expansion equals jobs.
