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Stockmarket is like 25% below its ATH weeks ago.

• ericd 7y ago
  Put another way, it's where it was in August 2017. Do you think that's a bit optimistic, to say that the economic prospects for the S&P 500 are about as good as they were in 2017?
  • pbourke 7y ago
    In the absence of information there is abundant speculation. I remember Trump’s “parade of CEOs” speech, and how it was a glaring attempt to goose the market at the end of the week. Nothing of substance was announced, but the market shot up 10%. Pure speculation. The music will stop playing when Q1 earnings are released and then we’ll see a stampede for the exits.
  • conanbatt 7y ago
    The companies they are now are not the same they were in 2017. They have a lot more knowledge, capital, etc. i.e. Would you say Tesla is more or less capable of building cars today than they were in 2017?
    • ericd 7y ago
      Unless I’m mistaken, Tesla hasn’t yet met the sustained profitability requirements to join the S&P 500. Do the companies in the S&P have a lot more capital than three years ago? They certainly have a lot more debt. My screeners for companies in great shape in terms of cash reserves vs debt are turning up a pathetically small number of companies.
      • conanbatt 7y ago
        My point is that looking at dollars purely nominally is not representative of the economy or the value of a company. Apple might have a stock price of 2017 (they don't but for the sake of argument) but the phones they deliver are not 2017, they are state-of-the-art. Its not like 1 year of no profits turns a company into 0 value, its about the long term prospects.