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==It seems nearly everyone always believes that a recession, big disaster slowdown, market crash, Etc is "right around the corner." And for the last 10 years th
by moorhosj 8y ago
==It seems nearly everyone always believes that a recession, big disaster slowdown, market crash, Etc is "right around the corner." And for the last 10 years they have been wrong in the macro sense :-).==
This isn't accurate, you are implying that people have been calling for a recession since before the last recession ended in June 2009. That doesn't pass the smell test.
==Where companies will have to prove that a cruel and unemotional market will agree with their lofty valuations.==
The claim that the market is "unemotional" is laughable. If that were the case everything would be properly valued based on the exact same criteria. For example, Elon Musk saying something controversial doesn't change the underlying business fundamentals of TSLA, but it sure moves the stock price. An "unemotional" market wouldn't react to an expected Fed action like they are right now (S&P down 2.1%).
- rue 8y agoThe market isn’t related to the companies it ostensibly comprises at all. Any changes are related to the expected value of the stock, not the company itself.
- moorhosj 8y ago==Any changes are related to the expected value of the stock, not the company itself. == How are these different things? Company stock represents an equity percentage of the underlying company.
- rue 8y agoIt’s the share that’s being traded. It doesn’t matter whether it represents reality. All that matters is that the guess about whether it appreciates or depreciates is correct.
- ksec 8y agoI don't even know if we have ever passed recession, I kept thinking we only managed to delay the recession we were suppose to have in 2008/2009. Ok Stocks may be doing great, there many be more company making money and asset prices are way up. But wages had never caught on.