It looks like you're new here. If you want to get involved, click one of these buttons!
https://finance.yahoo.com/news/stock-market-valuations-not-mean-reverting-morning-brief-110134302.html...rich valuations alone are no reason to avoid or dump stocks. And they’ve historically revealed almost nothing about what stocks do in the next 12 months.
Indeed, much of the gains you see in the stock market have been achieved while valuations appeared expensive.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
Comments
https://www.best-of-oahu.com/kailua-beach-park.html
So 2021 may well hold a solid year of market returns. But I feel like I've seen this movie before.
Valuations, PE, PE10, inverted yield, the economy, deficit, "experts" predictions and even earnings do not have a high correlation to what stocks may do for months and sometimes years to come.
https://www.axios.com/make-believe-economy-27a5a019-6798-4dd5-b674-e4dd914d73c0.html
Thanks for posting - excellent article.
"The socialization of debt by the Fed is fundamentally reshaping how the quote 'free market' system works," Scott Minerd, CIO at Guggenheim Partners, told Axios last month.
https://www.washingtonpost.com/business/2020/12/04/stock-market-stimulus-unemployment-figures/
TRUTH.
...Yet, here's an additional thought: The one typing these words is a socialist, but even I realize (sigh) that capitalism is the only game in town. People must be educated and have the fact drummed into them, that capitalism is the only game in town, in the USA. By definition, capitalism is inequitable. There are winners and there are losers. Because the playing field isn't level. Thus the need for regulations. But regulations with TEETH, not loopholes. So, "winners" and "losers" don't have to be so very far apart, as is the case today. The income inequality in this country today hasn't been so crazy nuts since the Gilded Age, the age of the Robber Barons. JP Morgan. Jay Gould. Rockefeller, Carnegie and all the rest of them.
Equality of opportunity is essential. Equality of OUTCOMES is self-sabotage, I think, in societal terms. But then, defining your terms then becomes necessary. And there's a huge difference between what's legal and what's ethical. Our common humanity demands that they not be so utterly divorced from each other, as is the case today.
...So, years from now, someone with 12 million dollars can feel satisfied, but at the lower end of the income scale, that guy need not feel like he's been left with the shit-end of the stick. If students truly LEARN how to not just save, but to INVEST, and if they are taught not to do crazy stuff with their money that they don't even understand, then they will be much better off than the mass of people today.
Stay safe, Derf
The stock market reflects public sentiment which is rarely neutral. We are typically either optimistic or pessimistic. With few exceptions we are optimistic far more often then pessimistic. Thank goodness for that human characteristic. Being optimistic wins which is needed for progress and well being. It’s why we get up each morning with goals to satisfy.
Best wishes to all.
>> By definition, capitalism is inequitable. There are winners and there are losers. Because the playing field isn't level. Thus the need for regulations. [etc.] ...
Huh? A lot of thoughts uselessly jumbled up here. Regulations have other purposes too.
https://en.wikipedia.org/wiki/Equality_of_outcome
https://www.yahoo.com/finance/news/capitalism-will-collapse-on-itself-without-empathy-love-scott-galloway-120642769.html
See also, any of Dr Hussman’s stuff. —. https://www.hussmanfunds.com/content/comment/
Investors should just ignore his prognostications. Link
https://phys.org/news/2020-12-santa-reindeer-outdo-senators-stocks.html