Stock price is often a really bad indicator of the health of a company, too. Companies with rapid growth and negative profitability are often darlings of the market while highly profitable companies with slow growth sometimes have declining stock prices. Changes in stock price indicate whether investors like a stock, not whether the company is strong and healthy.
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OK? I don’t really disagree. All I’m saying is that historically, however bullshit the DJIA is, it’s not a particularly worse indicator of anything that the S&P 500 is, because it tends to track it fairly closely. If you like the S&P 500 but think the DJIA is bullshit then I think you’re making a categorical mistake
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Oh, I wasn’t disagreeing with you. Just chiming in.
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I would argue that an extreme emphasis on growth is evidence that the price for stocks is based more on speculation than on the profitability of companies.
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Especially when the profits are funneled into buy-backs to inflate the stock, rather back into the business, wages, or dividends.
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And of course part of the reason that the DJIA and the S+P 500 track so closely is that they are based at least as much on anticipated fed rates and the cheap money that allows companies and investors to play various stock shennanigans as they are on the performance of the various companies.
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Sounds like a buying opportunity.
When is the right time though?
Just putting this here for people feeling down. There is some hope?
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Nobody can time the market. Only thing we know for sure is that stocks are cheaper right now than they were a couple weeks ago.
Hmmm, maybe. So many factors at play, especially (seems to me) the Republican willingness to steal elections, and the DNC’s hunger for anyone but Sanders.
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Logic? What logic?
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