3 ms·
The short of it, is that in some cases stocks have gone up 2 to 3 times their value in 5 years, yet revenues have been flat. Also, companies have been doing st
by base698 7y ago
The short of it, is that in some cases stocks have gone up 2 to 3 times their value in 5 years, yet revenues have been flat. Also, companies have been doing stock buy backs in some cases using bond debt to do it.
Another kind of interesting thing is the amount of money going into index funds. These index funds buy stocks based on their position in the market. The influx of capital allows companies to stay in the S&P 500 that before may have been removed. This optimizes for whether or not you're in the S&P 500 and not actually company performance. Decoupling your survival from reality is not a healthy ecosystem.
https://www.thestreet.com/story/10115781/1/investors-holding-the-bag-on-cisco-buyback.html https://www.thestreet.com/story/10115781/1/investors-holding...