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Aren't we already closer to "blood in the streets" than "cheery consensus"? Financial people love to say that the stock market grows at roughly 9% historically
by dmillar 16y ago
Aren't we already closer to "blood in the streets" than "cheery consensus"?
Financial people love to say that the stock market grows at roughly 9% historically, and that is money in the bank. But if you look at any historic chart these days, the massive amount of wealth and trading volume that has been generated over the past 10 years has made it obvious that we are in uncharted waters for future equities growth.
The Internet has been the game changer here. It has allowed access to equities to a class of investors that really never had access purchase these types of assets. This changed the game.
Cuban is probably right when he tells us to be weary of the market, but I think there are different reasons to be weary than those he states.
- mikebo 16y agoI think Cuban is comparing vs the March '09 low when the market was down 40% from now. He made several posts during that time about actual purchasing stocks.
- dmillar 16y agoRight, it was a great time to buy. I do tend to think that we will see DOW 14000 before DOW 7000, barring some unforeseen crisis. And I guess that's market confidence, right? What investors think the chances of something unforeseen popping up are.
- lzw 16y agoOf course because the more the dollar is devalued via inflation, the hugger stock prices will go even though they aren't actually appreciating in value.
- cynicalkane 16y agoEquities have been growing just fine. It's just that their market prices haven't been. The 10-year average earnings of publicly traded stocks--a rough but decent indicator of value--are quite a bit higher (70%, IIRC) than they were 10 years ago. The lesson is not to avoid the stock market, but to avoid overpriced stocks.