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Topic: Beware of the Stock market!! (Read 5809 times) previous topic - next topic
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Re: Beware of the Stock market!!

Reply #60
Interesting blog on the stock market with jabs at Trump and more. Here is a quote on a stock options angle I had not thought of before: "Buybacks are an inherent fraud upon the public for two reasons: First, they claim to be issuing options and restricted stock to executives at current valuations which, of course, means that there is only value to the executive in them if the company prospers in excess of the current performance.  This is a lie when there is a buyback because when you shrink the denominator the price of the remaining shares rises ratably irrespective of performance.  That's fraud.  Second, they quite-arguably constitute illegal insider trading in every instance because the executives who benefit from same mathematically are the ones voting on the buyback and who have inside information on both the intent to do so and the outcome while obtaining the shares subject to same."

link to full article:

http://market-ticker.org/akcs-www?post=234338

Share buy backs have shriveled to zip:

https://market-ticker.org/akcs-www?post=238435


Re: Beware of the Stock market!!

Reply #62
"The Federal Reserve made an emergency announcement Sunday afternoon by announcing that it would be cutting interest rates to zero for the first time since the financial crisis.
The central bank said it will use its “full range of tools” to battle the economic impacts of the novel coronavirus and announced quantitative easing in the form of at least $700 billion of asset purchases. It also encouraged banks to provide credit to the economy by eliminating reserve requirements and allowing the financial firms to tap into capital and liquidity buffers."

I have documented many times on these pages why this is exactly the wrong thing to do, but it is expected by wall street and the public in general so we get it to keep the existing of foolhardy politicians in office. Full article:

https://finance.yahoo.com/news/federal-reserve-cuts-rates-to-zero-restarts-quantitative-easing-qe-210001968.html

Isn't it amazing they could not wait for the fed meeting this week?

Re: Beware of the Stock market!!

Reply #63
That is terrible! Rates need to go to 10% but then the default starts.

Incompetent politicians and economists.


Re: Beware of the Stock market!!

Reply #65
Speculation...



 

Re: Beware of the Stock market!!

Reply #68
Here is another chart in another article pointing to the extreme market valuation; the difference pointed out is easy money on steroids.



https://thesoundingline.com/sp-500-cyclically-adjusted-earnings-yield-takes-out-1929-low-matches-dot-com-low/?utm_source=mailpoet&utm_medium=email&utm_campaign=new-post-sandp-500-cyclically-adjusted-earnings-yield-takes-out-1929-low-matches-dot-com-low_833