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Old 04-09-2014, 10:33 AM
 
Location: Metro Detroit
1,787 posts, read 2,085,938 times
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Does it concern anyone else how the US index funds have rebounded and exceeded their 2008 highs, while the rest of the world's index funds have stabilized somewhere between their 2008 highs & 2009 lows. Even in Canada (whose economy typically mirrors ours) they've yet to exceed their 2008 levels on the Toronto Exchange. Meanwhile, while better than 2008, our economy is not exactly thriving. Are we in for another bubble?

I'm by no means an economics expert and certainly open to correction as to why this is sensible, but it does concern me some..

(I do not post this in investing because I am more concerned about the broader implications for the U.S. national economy than I am for my portfolio.)
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Old 04-09-2014, 10:44 AM
 
10,272 posts, read 8,581,254 times
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With most of the wealth of the US concentrated in the hands of a small plurality, which is currently growing, and having most of that money probably in the hands of Wall Street, this does not come as a surprise.

I feel the real issue is the income inequality and not specifically how much money is being thrown into the stock market.
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Old 04-09-2014, 11:51 AM
 
Location: Central Florida
2,063 posts, read 2,112,370 times
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What upsets me is the recent revelation that high speed traders are able for a fee to positon their super fast computers right next to the stock exchange's computers and buy up the stock investors are trying to purchase in a fraction of a second before they do then sell it back to them at an inflated price. That is insider trading.
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Old 04-09-2014, 03:16 PM
 
8,082 posts, read 4,592,158 times
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Because other markets are still cheap.

Doesn't mean the US is inflated.
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Old 04-09-2014, 04:09 PM
 
Location: Warwick, RI
3,692 posts, read 4,559,331 times
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I worry about what the companies I am invested in are doing, and pay ZERO attention to what "the market" is doing. If my stocks go up, they become more valuable. If they go down, they become more affordable, and I buy more. In between the two, I collect dividends. What "the market" is doing does not concern me in the slightest.
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Old 04-09-2014, 04:22 PM
 
420 posts, read 688,601 times
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^ I agree.

Except I'm not even concerned with individual stocks right now. As a long-term investor of a diversified, aggressive fund-of-funds, my only concern is that the market rises overall over the next 30-40 years.
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Old 04-09-2014, 04:54 PM
 
Location: Buckeye, AZ
34,733 posts, read 18,899,042 times
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It concerns me only because of the fact that people use the stick market as an indicator of the market. It has record highs, let's see what happens when we start to remove the training wheels. If we are still reasonably high to what we have, I'd say we're recovering, it'd not then you have to wonder...
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Old 04-09-2014, 07:29 PM
 
Location: Warwick, RI
3,692 posts, read 4,559,331 times
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Quote:
It has record highs, let's see what happens when we start to remove the training wheels.
Record highs are not at all significant, especially considering most stock valuations are at reasonable levels. Compare stocks to food - the price of steak in the supermarket hits all time highs quite often, but that by itself is not a reason for it to go back down. And consider how steak prices would do if you took away all the chicken and pork, because that's the situation we're in. With interest rates on savings vehicles and bonds almost non-existent, the stock market is the only game in town if you want to grow your money. The largest debtor on the planet, the US Government, has a vested interest in keeping interest rates at next to nothing, and that's just where I believe they're going to stay for a long, long time. So load up on the prime rib now while it's relatively cheap. Buy and hold stock in solid companies, reinvest your dividends, and average down your cost basis on any weakness.
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Old 04-09-2014, 09:08 PM
 
14,035 posts, read 11,464,165 times
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Quote:
Originally Posted by Geo-Aggie View Post
Does it concern anyone else how the US index funds have rebounded and exceeded their 2008 highs, while the rest of the world's index funds have stabilized somewhere between their 2008 highs & 2009 lows. Even in Canada (whose economy typically mirrors ours) they've yet to exceed their 2008 levels on the Toronto Exchange. Meanwhile, while better than 2008, our economy is not exactly thriving. Are we in for another bubble?

I'm by no means an economics expert and certainly open to correction as to why this is sensible, but it does concern me some..

(I do not post this in investing because I am more concerned about the broader implications for the U.S. national economy than I am for my portfolio.)
It concerns me enough to not buy US (large cap) stock until a significant correction occurs, although it isn't as bad as either the 2000 peak or the 2007 one.
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Old 04-10-2014, 12:23 AM
 
8,082 posts, read 4,592,158 times
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Quote:
Originally Posted by ncole1 View Post
It concerns me enough to not buy US (large cap) stock until a significant correction occurs, although it isn't as bad as either the 2000 peak or the 2007 one.
A lot of those are the dividend payers, which have attracted a lot of attention, because of a lack of other places to put money.

There is still a lot of value out there. The obvious places, have been bought up.
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