3 ms·
Stock variation doesn't really say much other than probably a degree of general confidence about how much profits companies can take. How about actual corporat
by sonnyblarney 7y ago
Stock variation doesn't really say much other than probably a degree of general confidence about how much profits companies can take.
How about actual corporate earnings? (Thereby normalizing for wacky p/e ratios?)
And what about bond yields? (Because bonds and stocks are the primary assets, valuations flow from one to the other)
Interest rates? (Because cheaper Fed rates entail easy money)
GDP? (Because that's a measure of the economy)
Housing prices? (Because that's a measure of consumer spending, i.e. 'the rest of us')
Housing starts? (A measure of business confidence in consumer)
Employment? (A good measure of overall health)
Inflation? (A variety of factors but it puts the others in perspective)
Instead of this 'stock prices' thing they should show us all that for perspective.