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Money -- meaning liquid assets, be it bank deposits, bonds or equities (stock) -- represents a store of value, Equities are vulnerable due to the fluctuations of the market; bonds and banknotes are vulnerable to inflation -- the disease (politicians running the printing press to cover debts with fiat money) , as opposed to the symptom (rising prices).
In short, sound money, conservatively managed, is the antidote to political power.
Amazon stock (which has never paid regular dividends) is high-priced because of speculative interest; its recent $1500-$1750 price is backed by only about $75 per share in real assets (property and inventory).
Speculative interest is fueled by the belief that Amazon is here to stay as a dominant player; (of course it helps if the shareholder expects to be here for a long time; which is why it's a better holding for pension funds, and institutional (colleges, hospitals, even cemeteries) endowments,
General Electric, OTOH, has a long history of regular dividends, but it has fallen upon hard times, in no small part because many of its products -- jet engines, locomotives, wind turbines -- are vulnerable to shifts in the business cycle which, in turn, is affected by politics.
GE's Board of Directors recently had to "bite the bullet' and cut the regular quarterly divided ; the stock has a book value 0fmoly about $3.60/share, and trades for about $8.25.
Is Amazon likely to maintain that high price? I don't think so, but a number of high-fliers (McDonalds, to name one) have turned into steady dividend-generators as they matured.
Is GE likely to go bankrupt? I doubt it, but restoring the high share prices of ten years ago probably calls for sound management rather than political influence-peddling.
And political partisans such as the one posting above are the last people I would go to for investment advice.
No one is offering investment advice here except for you.
No one is offering investment advice here except for you.
You seemed to have posted in the wrong forum.
I'm not offering investment advice; I'm just presenting facts -- as opposed to the economic ignorance, self-serving class hatred, and outright lies, peddled in this forum every day by a well-organized clique of trolls.
I'm not offering investment advice; I'm just presenting facts -- as opposed to the economic ignorance, self-serving class hatred, and outright lies, peddled in this forum every day by a well-organized clique of trolls.
No. Your post is not facts, it's opinion (aka advice). You said AMZN is overvalued, which may or may not turn out to be the case, but it is an opinion. There is absolutely no factual hard line on what is "overvalued." You also said you don't think AMZN will maintain its price, which is about as non-fact as it gets.
If rich liberals care about the poor more, why do blue cities have the highest rates of poverty and inequality?
They don't. Of course there are exceptions like San Francisco, Los Angeles and New York. The cost of living and in particular of housing limit to a large extent who can live there. Don't believe me, here you go take a look at the poorest cities in the US https://www.usatoday.com/picture-gal...ties/37821209/
There is nothing wrong with being rich. But Dems like to portray themselves as the party of the people, not the rich. Maybe that's why the news media ignores the fact that Dems frequently vote for wealthy people.
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Maybe it's time to rebrand the Democrats as the party of the rich.
This month saw the election of Jay Robert "J.B." Pritzker as governor of Illinois. Pritzker, an heir to the Hyatt hotel fortune, is worth an estimated $3.2 billion, and spent $171.5 million to get himself elected, according to Money magazine.
Another winner was Edward M. "Ned" Lamont Jr., in the Connecticut governor's race. Lamont, an heir to the J.P. Morgan banking fortune of his great-grandfather Thomas Lamont, estimated his assets in 2006 at between $90 million and $300 million, and showed reporters tax returns last month with income totaling $18 million over 5 years.
Wow can you imagine having all that money? oh well, I'm just the little guy who gets stuck paying for all their blunders because they try playing God
So Demorctas, and Democrats a lone are responsible for the inequality of their own constituents.
If I blindly vote for 1 party and and I'm still poor, clearly something is going wrong.
Most middle and upper-class black, other minorities or women don't vote GOP. Look at the 2019 GOP Congress class photo. That photo symbolizes the makeup of the GOP, mostly rich old white men. It is what it is.
Party has little to do with being poor, try the history of slavery, discrimination, and oppression.
Voting GOP isn't going to make anyone rich. It makes the 1% richer. Hard work, education, equal opportunity and access to resources is the path.
No. Your post is not facts, it's opinion (aka advice). You said AMZN is overvalued, which may or may not turn out to be the case, but it is an opinion. There is absolutely no factual hard line on what is "overvalued." You also said you don't think AMZN will maintain its price, which is about as non-fact as it gets.
Get your facts straight; I didn't say Amazon was overvalued, or overbought; I only pointed out that shares selling at twenty times their book value, (let alone their current earnings) usually take a substantial hit at some future point where lofty expectations come back down to earth. It's like trying to get into into a rising elevator that's already at the 100th floor.
Last edited by 2nd trick op; 11-15-2018 at 05:55 PM..
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