Population and Economy and Stock

[NoMoreOptions]

Since I am going to be a chef, I am considering to start investing instead of trading. So let me ask this.

Intuitively, as long as the human population continues to grow, the economy has to grow. Right?

But what I don't understand is that when economy grows, why the stocks continue to rise and split and rise provided the companies exist. I know EPS, which are mostly less than 5% or lower. That means it needs 20+ year earnings to pay the shares at the present value. This scares me. I just don't get the idea of investment. Help appreciated.

 

[murray t turtle]

Most of Quote from MoreOptions:

Since I am going to be a chef, I am considering to start investing instead of trading. So let me ask this.

Intuitively, as long as the human population continues to grow, the economy has to grow. Right?

But what I don't understand is that when economy grows, why the stocks continue to rise and split and rise provided the companies exist. I know EPS, which are mostly less than 5% or lower. That means it needs 20+ year earnings to pay the shares at the present value. This scares me. I just don't get the idea of investment. Help appreciated.

====================

We could easily agree a medium charbroiled steak is pink in the middle;
however never have been really called to be a CPA & try to fine tune fundamentals.

However one may want to cook up a investing plan;
with mutual funds or my favorites

trend research

& occasional stock & derivative trade/invest.

 

[vak]

"Intuitively, as long as the human population continues to grow, the economy has to grow. Right?"

>>> nop' there is has been and will allways be cases when pop growths and economy sinks

actually if anything the oposite may hold better