Kind of scary
I pulled my money out of the stock market years ago and put it into my business. And lately I’ve been watching The Independents and, being on Fox Business, it runs ticker symbols at the bottom. I was pretty surprised at how much shares of stock were valued. They were shockingly high compared to prices back when I watched the market. So, this does rather explain that.
January 14th, 2014 at 11:32 pm
Woah, I though you had a financial acumen, aren’t you a CPA or something? So you invested in your company, why would someone else investing in historically profitable companies be imprudent? Why does that chart leave off the recent 2 years?
January 14th, 2014 at 11:45 pm
Dunno why the chart leaves off two years. Not my chart.
And I am a CPA.
If the companies are profitable, invest away but be wary.
The point is that stocks seem valued so high because the dollar is worth much less, when compared to a standard. The DJIA hitting record highs could mean your dollar just don’t go as far as it used to.
That is, a dollar ain’t worth a buck no more.
January 15th, 2014 at 9:26 am
This chart explains the current market. It’s pumped on inflation and QE. When it pops, a lot of real wealth is going to be lost.
January 15th, 2014 at 9:28 am
http://www.zerohedge.com/news/2013-12-10/things-make-you-go-hmmm-nothing-being-what-it-seems
January 15th, 2014 at 10:13 am
But where is your hedge against this devalued dollar without using the Market?
Rentals? Yeah, but that only indexes at the end of a lease. Plus, you have to deal with nutty renters.
Gold, oil, ammo, whatever just doesn’t work as a shield from the devaluing dollar. Neither do savings accounts.
So I argue that one MUST invest in the market to protect against the pernicious corrosion of value that our current monetary policy causes. The only worry is when to cash out. That keeps me awake at night.
January 15th, 2014 at 1:40 pm
My NYC liberal friend was waving this in my face the other day as a win for BHO and the US Treasury department.
I said it could be, but it was also a reflection of a low dollar value, limited money for borrowing by corporations and the only decent return for investment by pension funds.
It’s not because of a strong growing economy.
January 15th, 2014 at 1:47 pm
Because gold has always been such a great investment…. and because DJIA stocks have never paid out dividends.
If you take dividend re-investment into account, that chart looks WAY different.
January 15th, 2014 at 4:28 pm
Yeah the Progs are touting the stock market as a sign of recovery. Never mind everything else in the shitter. Comparatively few people are making money in stocks right now. The ones that weathered the worst of the downturn by being prudent are going to be this go rounds victims.