i'm no economist and i don't play one on tv but what i see in the US economy and the stock market, is sympathetic to Europe's sovereign countries, financial crisis. Europe is now experiencing their financial crisis, similar to what the US economy experienced in 2008. they just took a little bit longer to unravel their financial shenanigans.
the way i see the reason the US stock market's recent decline is, Eurorpe's issues gives all the short sellers and the gloom and doom prognosticators a reason to short sell US stocks.
but why? the US is not Europe. just think about US companies and the financial banks. having gone through the 2008 crisis, banks are much more capitalized and the CEOs are more cognizant of managing their company's balance sheet. interest rates are at a all time low, gas prices are stable, and the job market is improving. yes, the job market can definitely improve but the US is NOT Europe, not even close.
Europe's temporary downturn means, US companies won't sell maybe 20 billion dollars worth of goods to Spain, maybe 5 billion to Greece, and 20 billion to Italy. big deal. we can maybe make up the loss to selling to emerging markets and maybe more to Asian nations. So instead of revenues of 5 billion, maybe companies earn 2 billion...is that a reason to short a company? it's better to make 2 billion rather than being in the red.
these cnbc guest analysts think that every year, companies have to blow out their previous year's earnings to be considered worth investing. how about slow incremental increases each year in revenues or better yet, the metric of paying off their companies debt. to me, seeing that a company can be around for the next 50 years is more important than the short term gain.
the US stock market will roar once people realize this.
the way i see the reason the US stock market's recent decline is, Eurorpe's issues gives all the short sellers and the gloom and doom prognosticators a reason to short sell US stocks.
but why? the US is not Europe. just think about US companies and the financial banks. having gone through the 2008 crisis, banks are much more capitalized and the CEOs are more cognizant of managing their company's balance sheet. interest rates are at a all time low, gas prices are stable, and the job market is improving. yes, the job market can definitely improve but the US is NOT Europe, not even close.
Europe's temporary downturn means, US companies won't sell maybe 20 billion dollars worth of goods to Spain, maybe 5 billion to Greece, and 20 billion to Italy. big deal. we can maybe make up the loss to selling to emerging markets and maybe more to Asian nations. So instead of revenues of 5 billion, maybe companies earn 2 billion...is that a reason to short a company? it's better to make 2 billion rather than being in the red.
these cnbc guest analysts think that every year, companies have to blow out their previous year's earnings to be considered worth investing. how about slow incremental increases each year in revenues or better yet, the metric of paying off their companies debt. to me, seeing that a company can be around for the next 50 years is more important than the short term gain.
the US stock market will roar once people realize this.
