Posted on 03/25/2013 9:49:52 AM PDT by Signalman
Only 60%?
He’s not Mayan is he?
Proctor and Gamble has a P/E under 19, Ford under 10, meaning yeilds of greater than 5% and 10% respectively. (P&G was under 10 P/E a few years ago.) People are not going to stop buying soap, and will probably want pickup trucks and SUVs for the foreseeable future.
I don’t care what you swami sees in his crystal ball.
ping
So the sales figures for Ford and other manufacturers has been stable the last 10 years?
When that happens buy and when you make a fair profit sell.
Investors are comforted by there being no other place to invest money. They’re thinking this is a zero sum game. It is not. When the stock market collapses, the value will simply disappear. This guy could easily be correct.
They will just prop it up again with fiat monies...
Then it will collapse by 70% next time...
Unless they prop it up again....
Then it will collapse by 80% next time...
Unless they prop it up again....
Then it will collapse by 90% next time...
Unless they prop it up again....
Then it will collapse by 95% next time...
Unless they prop it up again....
Millbury Savings Bank in 1932.
Millbury Savings Bank in 2013. still doing business under the same name in the same location, only now they have drive up teller and ATM windows. The World may not end tomorrow.
According to www.bigcharts.com, Proctor and Gamble and Ford both have yields around 3%.
That just means these companies aren't going to go bankrupt. It doesn't mean their P/E's can't end up well below 5 in a big downturn.
Technically, it’s not a “triple top” until it breaks below the lowest valley.
Prepare now.
I think that’s divends, not ROI. Management reinvests some of the profit. Some of the investment is paying down debt (almost certainly true in the case of Ford.)
Of course, vastly profitable Digital Equipment Corporation (DEC) went for about 30 years without paying dividends, then paid a couple of paltry dividends before is was sold off to Compaq at a fraction of its market high, later acquired by HP.
People did stop wanting VAXs and PDPs and VMS, and Ken Olson wasn’t ready to adapt and change.
The list of banks which have ceased to do business is quite long. Perhaps a bad example on your part.
http://www.fdic.gov/bank/individual/failed/banklist.html
Zombies.
Somebody posted that picture of Millbury Savings on a thread about Cyprus. I find it amusing that the poster child for bank instability is doing fine.
I don’t think anyone has ever lose a nickle in an FDIC insured account.
Bull$hi|.
P&G is a well run, profitable company, making excellent products that people all over the world want at reasonable prices, paying good wages and returning value to its shareholders. I agree, Obama could croak it, given enough time and power. History is littered with the corpses of geese that laid golden eggs. When that happens, there will be no safe havens. In the meantime, I'll take 5% plus growth over treasuries which will be wiped out by inflation.
Who provides FDIC insurance for bank accounts? The Federal Government.
Who is taking the money in Cyprus? Their Federal Government.
Do you honestly think Pelosi, Obama, or Reid would hesitate to do something similar?
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