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What the left would have you believe is because the stock is at $10, then the economy is fantastic, even though it could have been $1 and the company still hold the same value
Please demonstrate someone using share price as an economic indicator. P/E and market cap obviously but this isn't amateur hour.
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Originally Posted by pghquest
If every company on the stock market did a 2 for 1 reverse split, the stock market would double overnight, but the economy, not move one bit.
No one is confused by splits, why suggest otherwise?
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Originally Posted by pghquest
Their whole notion that the economy is great, look at the market is completely laughable, given the lack of other investment avenues currently in existance. bonds, crap. Savings accounts, crap, Cd's, forget it.. t bills, may as well keep your money in the bank.
Ignore market depth & breadth because rates are low??!??! That's pretty silly and myopic.
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Originally Posted by pghquest
right now the ONLY place to put money and get a yield is the stock market, so thats where people have it. Thats not to say the economy is great because people are putting their money there. Their whole argument is complete ignorance.
Expanding where? Domestically or globally? Not only are profits at all time highs, so is productivity. China has been slowing down and underperforming as of late, but India has been overperforming. I think you are looking at the wrong places for most of the expansion.
Productivity as in individual productivity I agree. I'm not sure the point as it applies here though.
One reason is that it discourages some investments because of such low interest rates, and you cannot make money investing with such a low rate of return. With the feds pumping up the stock market for six years, some people can only make money by investing in the stock market.
Which is what the government wanted and is absolutely not the place of the government to decide. You'll not see the complaints we should see over this because a (D) is in the White House.
Instead of investing in technology to eliminate jobs, how about developing technology that will create new market demands, will spur innovation, something that will inspire people and give hope. Because every time I hear about a corporation doing something, the next 5 minutes is usually devoted to how many jobs will be eliminated as a result.
Because eliminating employees while still being productive is extremely profitable. And to be honest inevitable at this point. Welcome to the future.
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Today, our economy centers around wiping old people's behinds, spending billions to give people an extra 6 months of misery on this planet, finding ways to "grow" by eliminating more jobs, lobbying politicians for favors and kick backs, and insuring for various forms of personal tragedy...
No worries, we are developing robots that will wipe the behinds. I wonder if the corruption is going to get worse....thinking it might to be honest.
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Is there any way to make a legitimate buck in America anymore? Have the margins been squeezed dry by the corporate vultures yet? Corporations don't really have to invest anymore. They just have politicians write a bill dictating that you must purchase the product, regardless of expense. We've deviated far from our humble beginnings.
Mixture of answers here. Yes, quite a bit, no they dont, but many still do. hmm...not so much, and yes....yes we have.
Instead of investing in technology to eliminate jobs, how about developing technology that will create new market demands, will spur innovation, something that will inspire people and give hope. Because every time I hear about a corporation doing something, the next 5 minutes is usually devoted to how many jobs will be eliminated as a result.
Today, our economy centers around wiping old people's behinds, spending billions to give people an extra 6 months of misery on this planet, finding ways to "grow" by eliminating more jobs, lobbying politicians for favors and kick backs, and insuring for various forms of personal tragedy...
Is there any way to make a legitimate buck in America anymore? Have the margins been squeezed dry by the corporate vultures yet? Corporations don't really have to invest anymore. They just have politicians write a bill dictating that you must purchase the product, regardless of expense. We've deviated far from our humble beginnings.
The big problem is that some of that innovation is in AI, networks and sensors, the "cloud", robotics, and computing power have the ability to disrupt what we call labor in the mid term future.
How long will it be before you own a device that can take a blood sample and diagnose you better than a team of board certified doctors because it can access the entire sum of man's medical knowledge on the cloud? Just think of how powerful and small cellphones have become over 15 years.
One reason is that it discourages some investments because of such low interest rates, and you cannot make money investing with such a low rate of return. With the feds pumping up the stock market for six years, some people can only make money by investing in the stock market.
Exactly.
And at some point, those low rate of returns are going to have to start to pay more. As the economy truly starts to grow for example, companies will need to build new factories to meet demand and so they will have to issue new bonds and then increase the interest rate to entice investors to leave the stock market to buy bonds.
As the national deficits start to decrease, banks wont be able to buy tbills in enough quantity to meet demand for returns so they will have to start to pay higher interest on savings accounts, which will pull people out of the market.
The economy will be growing as the stock market slowly falls, because people will move money elsewhere to get higher returns and safer avenues.
The big problem is that some of that innovation is in AI, networks and sensors, the "cloud", robotics, and computing power have the ability to disrupt what we call labor in the mid term future.
I'd call it closer to near future to be honest.
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How long will it be before you own a device that can take a blood sample and diagnose you better than a team of board certified doctors because it can access the entire sum of man's medical knowledge on the cloud? Just think of how powerful and small cellphones have become over 15 years.
Id say 5 years until the tech starts to really get there, and 12 til its there solid and in use for the majority of things. I may be overly pessimistic on the timeline.
Productivity as in individual productivity I agree. I'm not sure the point as it applies here though.
Productivity has increased globally so it takes less people to achieve a greater result. The world has also grown significantly in the last two decades in terms of purchasing power, while developed nations have seen their growth slow or stagnate. I'm sure there is some bubble aspect to the stock market as the FIRE sector is sorta up to it's old tricks again. However, I think the stock market, more than less, reflects the nature of the new global economy. India has a billion people who aren't where China is and Africa has a billion people not where India is in terms of modernization.
America's best bet is to fix up entitlements, cut the world police and meddling crap and build, build, build more electric grids, roads, bridges, highways, mass transit, water treatment plants, etc.
Please demonstrate someone using share price as an economic indicator. P/E and market cap obviously but this isn't amateur hour.
Barack Obama himself "Since I have come into office, there's almost no economic metric by which you couldn't say that the U.S. economy is better and that corporate bottom lines are better. None." "a record stock market,"
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Originally Posted by TrexDigit
No one is confused by splits, why suggest otherwise?
Who suggested people were confused by them?
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Originally Posted by TrexDigit
Ignore market depth & breadth because rates are low??!??! That's pretty silly and myopic.
Have no idea who's ignoring those or what your point is
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Originally Posted by TrexDigit
Never fight the tape.
never suggested one should. I simply explained why the tape is what it is, and not always read properly.
Chainsaw Al used to fire tens of thousands of individuals causing stocks to climb. using Democratic standards that would be fantastic because stocks were climbing.
Barack Obama himself
[i]"Since I have come into office, there's almost no economic metric by which you couldn't say that the U.S. economy is better and that corporate bottom lines are better. None." "a record stock market," [/I
Still confused?
CLUE: "bottom lines" are not share prices
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Originally Posted by pghquest
Who suggested people were confused by them?
You did with your kindergarten tangent about the market doubling on stock splits.
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Originally Posted by pghquest
Have no idea who's ignoring those or what your point is
You're ignoring all other economic data simply because rates are low.
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Originally Posted by pghquest
never suggested one should. I simply explained why the tape is what it is, and not always read properly.
Got it... You read the tape improperly and then suggest others are doing so.
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Originally Posted by pghquest
Chainsaw Al used to fire tens of thousands of individuals causing stocks to climb. using Democratic standards that would be fantastic because stocks were climbing.
And? One moment you suggest the market's only up because there's nowhere else to put money. Here you suggest it's inflated by timely firings.
Get back if you muster some basic understanding of financial markets.
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