Skip to comments.And We're Back! Dow 14,000 Fuels a New Wealth Boom
Posted on 02/01/2013 3:13:45 PM PST by Mrs. Frogjerk
The next American wealth boom has officially begun.
It may not feel like it for many Americans. But with the Dow breaching 14,000, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession and attained levels of paper wealth they haven't seen since the Roaring Oughts.
The stock market has gone from wealth destroyer to the nation's largest manufacturer of new millionaires and billionaires. The market moves are creating a new virtuous cycle of confidence for the wealthy. A new survey from Spectrem Group shows that millionaire confidence in the economy hit the highest level in two years, led by their bullishness on the economy and corporate earnings.
The big question now is what the next Gilded Age will look like, who will benefit and how long the market-fueled prosperity will last.
(Excerpt) Read more at cnbc.com ...
I don’t know, but I want some!
The next bubble is about to burst.
I have a few stocks I bought a few years ago that are 50% of their value. Yea its roaring back alright.
Usually when the msm writes glowing reports about stocks, it’s over. It use to be when a story hit the cover of Time magazine it was definitely over.
I just got out today near session highs. Will get back in later this month on a decent pull back.
I try to stay on the sidelines the majority of the time, because reality will come eventually and the sidelines will be the place to be.
My real estate holdings went up nicely in 2012 also.
I’m not saying this to make responders look bad, just saying that there are a variety of outcomes.
Inflation affects stock prices too.
I don’t expect this to last, but for today I am $miling.
Who was the guy who said in the ‘20s “When I start getting stock tips from the shoeshine boy, it’s time to get out of the market”?
Virtuous cycle? Looks more like a virtual cycle to me—virtual prosperity fueled by a bubble full of bubbles.
This time around I doubt that the "it's Bush's fault" will hold water.
The ‘stock tips from shoeshine boy’ is attributed to old Joe Kennedy, who pulled his money out of markets before the collapse and bought real estate cheap during the Depression. Real estate was Kennedy’s connection to the Chicago political machine that stole the 1960 election for JFK.
Party like it’s 1929!
Adjusted for inflation, it’s what?
‘paper wealth’ Most important two words in that entire piece!
This is going to be fun, LOL!
Got RGR? What ever you are holding slap trailing stops on everything now.
“The population of individual millionaires (as opposed to households) rebounded to its all-time high two years ago. According to CapGemini, there were 3.35 million millionaires in North America in 2011, up from 3.2 million in 2007. Their total wealth in 2011 was just shy of the 2007 peak, at $11.7 trillion.”
‘These selfish b@stards need to pay more in taxes!!’ Said No Conservative Ever
Woohoo! It’s the new new economy. Nothing can possibly go wrong!
Of course it will, because at no time during the entire recession, did any elected Republican or Republican consultant properly describe it was liberalism, and not anything Bush did, that caused it.
A lie only hardens over time if not refuted, it does not die a death of natural causes.
“Prices for highly prized art, wine, vintage cars, jewels watches and other collectibles are soaring past their 2007 highs.”
I’d equate that to ME stockpiling rice, beans and ammo.
We both know the end is near, we just find different things to be of ‘value’ in our immediate lives. :)
All you nay sayers need to read Ben Grahm’s book or better his disciple David Dreman’s book on contrarian investing.
Us contrarians are setting pretty. The fact you are whining means money is being made
I believe in a diversified portfolio. Ammo, food, water, medical supplies, tools, pint bottles of whiskey and vodka and of course the old standby - gold and silver.
The Vanguard Total Market Index Fund (VTI) is higher now than it was before the crash. It was up over 17% last year and is up more than 5% this year to date. You don’t have to pick stocks and pay fees. You don’t have to be rich to get in. It sure beats the 10 year CD’s at 1%.
Meanwhile, here in the Real World, the US workforce has shrunk to its smallest levels since 1984, wage growth is negative, and interest on savings is less than zero after inflation, which the government conveniently denies is happening.
But the Obama cheerleaders at the Communicate Nothing But Crap network keep waving their pom-poms as though we were living in a new Gilded Age.
Any bets that it’s a bubble?
The 1% is back and on a roll. The DemocRATS are rejoicing! So much for those 99% OWS losers. LOL!
“a handful of stocks fueled by high-frequency trading computers owned by politically-connected banks”
I have been saying for some years now that the market is no longer your father’s stock market.
It is now mostly sophisticated computers doing the pump and dump.
I think it has little to do with reality.
In gold, the s&p is actually down.
In gold, the s&p is actually down.
No, the new mantra is that it’s all Congresses fault.
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Gee, recovery summer all over again....what a load of rubbish.
Prices for highly prized art, wine, vintage cars, jewels watches and other collectibles are soaring past their 2007 highs.
I have collected antique glass & crystal perfume bottles/presentations by famous artists/design houses (Lalique, Viard, Baccarat, etc) for 40 years. I keep tabs on the current auction results. Prices realized are barely at 1/3-1/2 of 1998 book values. Sales results plummeted from their highs in 2008 and while they have rebounded in the past 18 months, they are still depressed.
OTOH, having finished the 2013 books, we were astonished to find sales were up 15% Y/Y. Costs, however, were up 30%.
I believe these folks are stockpiling the equivalent of PMs. These collectibles, they hope, will be priceless after the riots and destruction they foresee. This is their store of value. They will use their PMs to survive the harder times. The cars, wines, paintings, et al are all stashed in their country homes, aka: BOL. They will trade them among themselves, or leave them to their children and grandchildren. It’s a way to keep assets from the government.
I doubt any of them would even think of stockpiling rice, except Arborio for their risotto. Ammo? Gaia forbid!!!!
It has been good to see you back, Diana.
art = kids first coloring efforts in scrapbook
wine = Ripple, Boones Farm (Strawberry Hill and Melon Ball)
vintage cars = 69 Corvette Stingray in matchbox car
jewels watches = Timex (I used to wear two Timexs until I found I had too much time on my hands)
The rich don't have anything on me.
Thanks for expounding upon the simple thought of a country Girl. :)
It’s good to be back! I have missed you all. :)
I wouldn’t trade my life for theirs, either. Fools. :)
What’s a 2013 dollar wort compared to a 2007 dollar?
Wow, things are going so well the market is back up.
Even unemployment is up!
And so is the number of people who stopped looking for work!
The deficit and national dept are way up!
What a boom! Everything is up!
The author is parroting the socialist meme.
The "virtuous cycle" is a statist concept, originating in Europe and adopted by Bernanke, postulating that government intervention in the economy can create a virtuous cycle of improved economic performance. In a speech given before he became Chairmen, Bernanke adopted the concept and suggested that the Fed could directly cause an increase in equity prices. It is widely speculated that Bernanke has been implementing this intervention in the equity markets through the New York Fed.
This Fed action is already a failure, merely causing equity prices to disconnect from the performance of the balance of the economy.
It makes sense that in the short term balance sheets will look better as companies layoff employees ahead of poor sales projections.
The DOW is p .8% since I moved my assets into Money market accou8nts to preserve the value vs. worrying about it growing/disappearing. I believe that if I leave it where it is, in 9 months or less, I’ll be much better off due to not losing my shirt (again) when it crashes.
The guys who trade stocks know as much about the economy as the players in the World Series of Poker. Proof? On the very day - in fact in response to - the latest “good news” jobs report including a Central Committee admission that there are 8.5 million few Americans working now than when the Kenyan came in, the DJ hits a record high. All they care about or know about is what the guy in the next chair is doing or not doing. I have a friend just like this. He makes money on the market by studying trends in trading. He actually told me he believes the economy is turning up! College grad as well!
Right now, a dollar is worth about .741 cents. I don’t know what it was in 2007.
The word not mentioned at all: inflation.
$10,000 today won't buy you what $10,000 bought earlier. When they say the market it back up to where it was before - it isn't.
Nothing to do with the QE4 I’m sure.
Nothing to do with the QE4 I’m sure.
Diana, from your posts, I conclude you are _far_ from simple.
But country girls will survive!