Follow the money

gaussian said:
Earnings have mostly stagnated for the last decade. What you're thinking of are stock buybacks which artificially inflate common financial ratios (EPS in particular), enrich share holders, and disenfranchise investors. They do this via debt which of course they get from stimulus programs because our government is run by literal chimpanzees. You realize that when a stock buyback program begins earnings often stay the same or decrease but the EPS numbers "look right" because the other part of the equation, basic shares outstanding, is reduced as well? You do realize that analysts have a vested interest in fudging or outright lying about information related to EPS in order to secure deals with companies in money management? How many times did you hear something like "Harley Davidson EPS beat analyst expectations because they bought back millions of shares outstanding" (this is the truth not a fun example). You didn't.

I do think somewhere in the range of Dow 10-14k is probably about accurate for the value currently present in the market. If you spent 10 minutes looking at balance sheets for the companies composing the Dow and S&P you'd be sick to your stomach too.

Stock buyback programs gave us the "unstoppable bull market" of the last decade. There has been virtually no value created since just after the recovery. Stop pretending. You're mocking him but you're the one with your face in the koolaid bowl.
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You clearly haven't done the research.
 
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Let's consider another world besides the current unlimited money one we are living in.

The Fed decides to cancel ETF buying program. The Fed also decides to, not only stop buying bonds, but begin selling the ones it already has. With a target of getting all assets on its book back below a measly $1 Trillion and putting a nail in the coffin of ZIRP!!

Where is the Dow .... once it is even is (of course never) announced?

Dusk is dawn is day
Where did it go?
I've been laughing
Fast and slow
Moving in a still frame
Howling at the moon
Morning found me laughing
Up and down, down
Low, low, low
 
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