Quote:
Originally Posted by Boomer
I think the pre-crisis DJIA high was in October of 2007.
The big fall was in 2008.
This bull market is usually measured from March 2009.
As the market led up to the fiasco of 2008, I remember thinking that the housing boom was a house of cards. It got downright stupid.
(And then everybody in high places seemed so surprised. I have never understood how some old high school teacher in the Midwest could see it coming but they did not.)
I am not claiming to be some kind of savant or to have any qualifications whatsoever. But for what it is worth, I think our long bull market, post-corporate tax cuts, has been basically a bull$#*% market.
I have a long held comfort zone with making my own market decisions. But I strongly believe that unrestrained greed is not good for the economy.
Back to the thoughts on stock buybacks: I still don't like 'em.
And I sure don't see this current market offering me any buying opportunities. (euphemistically speaking)
Anybody else keeping an eye on the old bull? Thoughts?
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Too many to cover in one post, but here's a few...of my own observations/opinions.
1. I'm an
'Oracle of Omaha' disciple and believe in holding for the long haul...even though it can be tough on the ticker in the short run. After seeing an almost 2-1/2 times increase in the DJIA between the low of early 2009 and 2016...I'm glad I hung on.
2. I too am against stock buy-backs, even when they personally benefit me...as I think they are bad for our country in the long run. Particularly, since the current system rewards upper management for a short period of their company's stock price and almost compels them to do whatever is good in the short run...as then they can make their killing now if they're later replaced. The old
"instant gratification/I got mine, forget you" attitude...if you will.
If laws required their remuneration/pay package to be based on say a three year average, we might see actions being taken that strengthen the economy/company...for a longer period of time.
3. Since just a little over 1/2 of Americans even own stocks, the idea that those who benefit the most from tax cuts, or loose corporate regulations, allowing companies to increase their profits for the short term will eventually allow some bread crumbs to
'trickle down'...I find ludicrous.
https://www.politifact.com/california/statements/2018/sep/18/ro-khanna/what-percentage-americans-own-stocks/
Quote:
And in 2017, Gallup found that 54 percent of respondents owned stocks either directly or as part of a fund.
To be precise, a narrow majority of Americans does own stocks, according to credible recent studies. But Khanna has a point that Americans of modest incomes are significantly less invested in the stock market than wealthier Americans are. Other large groups, including minorities and those without a college education, also lag in stock ownership, meaning that the stock rally is largely passing them by.
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4. Recent tax cuts; Too political to address, but so far...I'm certainly not seeing what the proponents were touting.
Even with the recent market(s) volatility, I'll still sit tight and just keep telling myself that...
"I don't lose anything, if I don't sell."
Sadly, not everyone has that luxury.
