Posted on 08/03/2016 3:55:04 AM PDT by expat_panama
Is anyone thinking this through here?
Most U.S. employment is by corporations w/ mare than 500 employees. Most U.S. private wealth is corporation ownerrship. That means if all Americans dump stocks then Americans will lose half their wealth and most of their incomes.
I’m assuming he means personally he’s not in the stock market. I remember in ‘87 he said that. He got in trouble for saying he didn’t take much of a hit.
But I’m sure his company offers a 401k to his employees which sort of means he’s in the market.
“Most U.S. employment is by corporations w/ mare than 500 employees”
That is a laughable assertion. Most U.S. employment is with companies with less than 50 employees.
Corporations are spending billions buying back their stocks. Many highly successful businesses will never issue stocks. So it appears the corporate world is dumping the stock market, too. The disasters us market crash in 2008 taught many people a valuable lesson about investing one’s money in this shaky entity. It is a gamble.
A good morning to everyone as yesterday's stock index drop of almost a % chaulked up another IBD distribution day. This seems to be making futures traders nervous, indexes are pegged now at -0.84% in contrast to metals' bullish +0.66% --gold silver jumping to $1,365.05 and $20.67.
Econ stats were in the news yesterday: Consumers Dig Into Savings Again In June: Spending Up 0.4% and today we got:
7:00 AM MBA Mortgage Index
8:15 AM ADP Employment Change
10:00 AM ISM Services
10:30 AM Crude Inventories
Some threads someone needs to post:
- Betsy McCaughey: The Tax-Shaming Trap
- Dennis Prager: Did #NeverTrumpers Hear Hillary Clinton's Frightening Speech?
- Thomas Sowell: Tough Election Choices Ahead Between Two Awful Candidates
- Phyllis Schlafly: Parties' Platforms Offer A Stark Choice
- Walter E. Williams: Of 'Compensating Differences,' Cars, Steaks And Jewelry
- Clinton Ignored Obama's Order To Get Security Training While Sec of State, Filing Shows
- Disturbing Revelations About Hillary And Her 'Russian Reset' Pal Putin
Your sudden concern for the muppets is touching. Get your shorts on. It's going to be a bloodbath.
Stock buy backs are an effort to increase share value and the price to earnings ratio.
Since dividends are taxable, the use of earnings to buy back shares provides value to shareholders that would be taxed if paid out in dividends
So, you are wrong. Share buy back strengthens the company and the market
The current market is crony capitalism. Foolish investment unless one is a crony. Like playing Roulette with a wheel known to be rigged. Cards with a stacked deck.
Where do you have your retirement funds invested?
“Most U.S. employment is by corporations w/ mare than 500 employees”
That is a laughable assertion. Most U.S. employment is with companies with less than 50 employees.
He’s an ex-pat and a never trumper. What do you expect??
“Most employment in this country is in companies of over 500 employees”? When did that situation flip? All my life I’ve heard and read that SMALL business is the backbone of the Country. That more people are employed by companies of UNDER 500 em-plo-ees. Has Obunga destroyed the business infrastructure to THAT extent?!
Highly diversified at the moment in at least 5 different metals. LOL. A Trump presidency just may put an end to the crony capitalism and, if so, tax cuts will precipitate a flood of money to stocks. DOW 30,000 could really happen. I would expect an initial plunge as the globalists try to punish Trump but he can (and from “performance to date”) and probably will “punish back”. I own a couple $5 bills that were printed during JFK admin. that are NOT Fed Res notes. So far Trump is a fighter that firmly believes in the counterpunch. When, not if, the Fed and other globalists make a move against him the Constitution gives him the power to crush the Fed. Interesting times.
Different investors like and are good at different markets. Real estate is very different from stocks, bonds and commodities. Trump knows real estate. Getting out of something your not totally familiar with - and that can be highly manipulated - like the stock market is not bad advice. He doesn’t need to be in the stock market.
True - there is a downside though in that the shares bought back - unless retired, which they are most often not, do not translate to share price, P/E, and or other metric changes and relegate the voting status to the board members thereby reducing share holder voting power.
“That is a laughable assertion. Most U.S. employment is with companies with less than 50 employees.=”
That is listed on the stock exchange?
Have you been watching average earnings for the S&P lately? It looks like the S&P needs to loose ~40% to support current earnings, or quickly grow earnings to support current valuations.
What do you think is going to happen?
Date Value
Mar 31, 2016 87.49
Dec 31, 2015 88.18
Dec 31, 2014 105.02
Dec 31, 2013 103.63
Dec 31, 2012 90.82
Date Price
Aug 2, 2016 2,154.01
Jan 1, 2016 1,918.60
Jan 1, 2015 2,028.18
Jan 1, 2014 1,822.36
Jan 1, 2013 1,480.40
Jan 1, 2012 1,300.58
If you want to see how the stock market is doing, look at a connected congressman’s portfolio. Since insider trading for congress isn’t a crime (once again the game is rigged) their investments are pretty much guaranteed winners.
I think for someone like Trump, who actually uses capital for projects, investing in financial vehicles is a risk. If he could spend a billion on a project and make 1.5 billion from that, why does he need to invest in the stock market?
What would this chart show without endless rounds of QE?
Japan has provided us a classic example of what we can expect from endless QE. 3 lost decades and a debt to GDP ratio of +200%.
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