“The stock market is not the economy.”
No but it is a forward looking indicator of the economy
“During the times going into recessions you will see highs as companies do all the normal things: pare inventory, increase efficiency, streamline staff, buyback stock, etc.”
Not buy back stock, that happens after the market tanks.
“The earnings per share are the thing to watch. Companies future eps estimates are pretty high. People are throwing money at the US markets because there is nowhere else to put it.”
S&P is currently selling at about 25 X earnings, pretty high but nonetheless earnings are strong and about 75% of those reporting have beat earnings estimates.
“It’s not going to crash tomorrow or the next day. But unless stuff gets growing elsewhere we are going to have little choice.”
Since the very beginning the markets have gone up and the markets have gone down. However going back to the beginning the Markets have on average advanced two out of every three days with an average after tax gain of between 8 & 9%.
I am a 50+ yr investor. I do not trade but maintain a balanced portfolio (re-balanced as necessary) with all dividends reinvested.
The key is patience and commitment to quality investments into companies with good management and a strong balance sheet.
Yep. Sold 10% of my AAPL and 25% of AT&T. doubled my money on both, so took a little off the top. Worried about AT&T dividend, and it was 15% of my portfolio....too much of a position. WIll sit on cash for a while. Might buy Paypal DAL, or Exxon. Put some in VOO for the kids.