Hi Dan,
Interesting comments. Thanks.
The way I see the stock market, in broadbrush, is that the price of equities has become completely unhinged from the former justification to hold them. I.e. a claim on future revenue streams via dividends, stock dividends, etc.
Today, what we have is simply a "bigger fool" market, the appreciation of the asset relying on a bigger fool coming along to offer a higher price for what truly is in actuality a depreciating asset. I say depreciating, because as we saw in the bubble, Wall Street was perfectly happy to create a supply of stock to meet any demand, no matter how unhinged from reality. The damage this has done to the market is going to take far longer to forget than any of the talking heads on CNBC or in the analyst community are willing to admit. There simply aren't any new suckers to bring into the tent, as far as I can tell.
Best, Ray |
