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Today the S&P 500 closed at it's highest level since the start of the Great Recession.
U.S. stocks were higher Friday as investors welcomed a batch of better-than-expected corporate results.
Its so low, and has been for some time, you would think the only way it could go is up. But we will see.
"...an economy hampered by restrictive tax rates will never produce enough jobs or enough profits" JFK
Really? Companies are having record profits. The stock market is at record levels. Under Bush, these things dropped to extremely low levels, and they continued to drop under Bush. It was not until three months into Obama's presidency that things started to turn around. These things are doing much better despite a terrible world economy, record spending cuts by states, record number of people reaching retirment age, and Republicans creating one artificial crisis after another.
And you can't seem to put together why and what detrimental effects both are having.
Profits are detrimental? The stock market being up because of those record profits is detrimental? Seriously? What economic theory is that?
I suspect that you believe the market is up because of low interest rates. Of course, that is a factor, but it is not the only factor. Interest rates were at record lows in early 2009.
It's how the profits were realized. Slashing full-time positions and benefits (not to mention offering less value for the same price) to maintain a facade of growth isn't healthy.
No, I don't believe that the market is up because of ZIRP. Of course, that is a factor, but it is not the only factor. Interest rates were at record lows in early 2009.
Okay. We agree regarding profits being enhanced by slashing positions. I believe that was done with automation and shipping jobs overseas. I do not believe anyone is trying to produce a facade of growth and quality varies depending on the type of product. Some has gotten better and some worse.
You can believe what you'd like, but look at the explosion of domestic part time positions created in the last two years. Those were created by dissolving FT positions. This is bad.
I think you're taking the inference a little far as it is indicating nothing of the sort, but I get your point.
Here's more on what this writer calls "stealth inflation":
Uhh... in case you haven't noticed... a lot of S&P500 companies are already starting to peak in terms of revenue/ cash growth. It's only a matter of time before they start retracing a lot of their gains. Likewise, stock price increase don't always mean company value/earnings increase. A lot of time, it might just mean the PE ratio or some other multiple shot up (probably the case now... as the S&P is trading at an unprecedented 15+ ratio) despite little changes to the company's fundamentals.
I would like to add, in addition to SG&A expenses being cut to the bone, a lot of revenues were generated OUTSIDE of the US.
Foreigners get richer. Americans get poorer. This trend can very well be reflected in a number of 10Q statements that have segmented lined items. It'll be interesting to see how this is sustained now that many "developing markets" that contributed heavily to big business revenues are hitting a wall themselves.
FWIW, I bought up this point in another thread awhile back but morethan conveniently dodged it.
Thanks for the input. To be honest, I have no education or experience (run with that morethan!) in this area, just dinner conversation over the years with an educated individual that has since passed so it's fantastic to enjoy informed dialogue like yours.
I'm taking a break from the board soon and am going to miss it.
The historical average P/E of the S&P (since about 1870) is about 15. I have no idea what you mean by record levels. In fact, just a few years ago (about 3) the trailing P/E of the S&P was over 120. That was a total anomaly, but 15 is hardly a record.
I do not know what you mean by little change to company's fundamentals. Public corporations are earning record profits.
Morthan "dodged it" is dishonest. I do not remember seeing that. Show me where I posted in a thread after you posted something to that effect soliciting a response.
As far as foreigners getting richer while Americans get poorer, our economy is the best in the world for a developed nation presently. Who is getting richer? Developing nations? Do you expect differently? That is normal. A developing country merely needs to modernize to grow. A developed country must innovate. Wages are cheaper in underdeveloped countries giving them competitive advantages.
NPR reported on this trend last week. It didn't occur to me that this practice event existed.
With that being said, how does a shady practice by people in the food industry speak directly to any type of inflation?
JusT MoRE FoOL'S GoLd.
And da lefTists ArE OnCE AgAiN,------Da FoOL'S!!!
MeMBeR SiNcE 9/11/2011
MaY GOD BLesS ThE U.S.C. TROJAN'S, AnD AMeRiCA,---FoR ALLL ETeRNiTY!!!
In other news related to our economic recovery, CalPERs has made back the money the fund lost during the Great Recession.
After more than five years, the California Public Employees’ Retirement System is about to reach the $260 billion in assets it held before the global financial crisis wiped out more than a third of its wealth. The secret to its recovery: persistence. It stuck with its asset allocation, half in
Higher costs require businesses to get 'creative' with their product so they can appear to charge the same price. It it really that complex?
Yeah, I'm just not seeing the direct connection you seem to have made.
Your suggestion seems to be one that is reaching a bit to find some type of inflation because we haven't seen the actual inflation that doom and gloom types said was going to hit us in 2009, 2010, 2011, and 2012.
Again, you're making inferences that don't exist.
YEEEahh, AnD NoW ThaT de obumMers ArE BaCK To ApPLyInG TheiR OLe FrIeNdLY BaNd-AiD ApPRoAcH/"SoLuTion," Of PrInTinG MoNeY AgAiN, It Is NOOO LoNgER A QuEsTioN Of Ifff ThE InFLaTioN HiTS, OnLY WHEN!!!
IgNoRaNT lefTist/MaRxIsT BaSZZZTIIIDdDsZZZE.
That's a central banking issue, not right/left. Ben would do the same thing if Mitt won.
You're trying to use a fact with BD?
As I type this, The Dow is 13,944. We're inching ever closer to that 14,000 mark.
The all time high mark for the Dow is 14,164.
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