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To: Wyatt's Torch

Stock prices reflect a company’s prospects during normal times, when basic economics are at work.

What do you suppose happened to stock prices during the Weimar Republic’s QE folly? They went up exponentially.

Right now the Fed is creating $85 billion a month to inflate stock prices. Thus, stock prices are tied more to dollar speculation than any particular company’s prospects. There are a limited number of assets that you can convert, soon to be worthless, dollars into. Stocks are one of those assets.


57 posted on 05/07/2013 7:56:34 AM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: SampleMan
I immediately discount posts that reference the "Weimar Republic"...

I've posted a thousand charts on various threads that bolster my case that things are improving. Here's yet another that shows why stocks are up. It's because earnings are up to record highs:

My company being up 300% in the last two years has zip to do with QE. Ditto for hundreds and hundreds of other companies. It's the fundamentals. Ignore them if you wish. Not my problem you are choosing to miss out.

59 posted on 05/07/2013 8:01:18 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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