Stock Market over 17k

[TGHusker]

http://online.wsj.com/articles/stock-futures-inch-higher-1404389747?mod=WSJ_hp_RightTopStories

 

Where will this ride take us - no end in sight or a bubble burst is coming? I'm not a economist - you tell me.

 

Thanks Obama (just joking guys - I'll give him & Fed credit for recovering and growth but couldn't resist this little video )

 

[LukeinNE]

I'm an accountant, not a finance person, so my limited understanding of the markets is mostly rooted in nuts and bolts. I think the fact that the markets have vastly outperformed actual economic growth is something of a concern, though a lot of that disparity is simply that the market was massively undervalued in the wake of the 2008 and 2009 crashes (Warren Buffett Rule: Be scared when everyone else is greedy and be greedy when everyone else is scared). The cause for concern (imo) is that the Federal Reserve has made money so cheap, traditional savings is borderline pointless, and that's inflated stock values. Nothing to get too excited over, though. An imperfect but quick measure would be to look at the S&P's price/EPS ratio. Right now we're just under 20. Historically, that's on the high side and indicates we're due for a correction, and I think that's likely.

 

I wouldn't get too excited about a bubble bursting, but I think we'll see a significant downturn sooner rather than later.

[Creighton Duke]

I'm an accountant, not a finance person, so my limited understanding of the markets is mostly rooted in nuts and bolts. I think the fact that the markets have vastly outperformed actual economic growth is something of a concern, though a lot of that disparity is simply that the market was massively undervalued in the wake of the 2008 and 2009 crashes (Warren Buffett Rule: Be scared when everyone else is greedy and be greedy when everyone else is scared). The cause for concern (imo) is that the Federal Reserve has made money so cheap, traditional savings is borderline pointless, and that's inflated stock values. Nothing to get too excited over, though. An imperfect but quick measure would be to look at the S&P's price/EPS ratio. Right now we're just under 20. Historically, that's on the high side and indicates we're due for a correction, and I think that's likely.

 

I wouldn't get too excited about a bubble bursting, but I think we'll see a significant downturn sooner rather than later.

This right here.

[TGHusker]

I'm an accountant, not a finance person, so my limited understanding of the markets is mostly rooted in nuts and bolts. I think the fact that the markets have vastly outperformed actual economic growth is something of a concern, though a lot of that disparity is simply that the market was massively undervalued in the wake of the 2008 and 2009 crashes (Warren Buffett Rule: Be scared when everyone else is greedy and be greedy when everyone else is scared). The cause for concern (imo) is that the Federal Reserve has made money so cheap, traditional savings is borderline pointless, and that's inflated stock values. Nothing to get too excited over, though. An imperfect but quick measure would be to look at the S&P's price/EPS ratio. Right now we're just under 20. Historically, that's on the high side and indicates we're due for a correction, and I think that's likely.

 

I wouldn't get too excited about a bubble bursting, but I think we'll see a significant downturn sooner rather than later.

good review. Yea, none of us want to get caught wt our pants down like in the early 2000s and 2008

[tschu]

I'm an accountant, not a finance person, so my limited understanding of the markets is mostly rooted in nuts and bolts. I think the fact that the markets have vastly outperformed actual economic growth is something of a concern, though a lot of that disparity is simply that the market was massively undervalued in the wake of the 2008 and 2009 crashes (Warren Buffett Rule: Be scared when everyone else is greedy and be greedy when everyone else is scared). The cause for concern (imo) is that the Federal Reserve has made money so cheap, traditional savings is borderline pointless, and that's inflated stock values. Nothing to get too excited over, though. An imperfect but quick measure would be to look at the S&P's price/EPS ratio. Right now we're just under 20. Historically, that's on the high side and indicates we're due for a correction, and I think that's likely.

 

I wouldn't get too excited about a bubble bursting, but I think we'll see a significant downturn sooner rather than later.

 

Yea this. The market is way ahead of economic growth, employment, and wages since the crash, and has been coaxed somewhat artificially into being as high as it is. Downturn ahead is likely but I don't think it'll be a crash - we are all still scared from 2008.

[Husker_x]

The stock market ceased to be a useful tool to measure economic conditions some time ago.

[BigRedBuster]

The stock market will go up and it will go down. It never has been nor ever will be the determining factor in how the economy is doing.

[Creighton Duke]

The stock market ceased to be a useful tool to measure economic conditions some time ago.

I wouldn't say the stock market as a whole has ceased to be a useful tool, but the Dow Jones collection of companies may have lost some utility in its ability to convey the relative health of the economy.

[Husker_x]

 

The stock market ceased to be a useful tool to measure economic conditions some time ago.

I wouldn't say the stock market as a whole has ceased to be a useful tool, but the Dow Jones collection of companies may have lost some utility in its ability to convey the relative health of the economy.

 

 

True enough. If the Dow plummets to 5000 from 17000, that indicates something. But it in no way represents any kind of snapshot of the real economy, specifically the middle and poorer classes.