>>>KO is trading at 40x earnings and they'll be lucky to grow earnings at 18% this year. I don't care what kind of technological advances we have, the math doesn't work.<<<
I never said anything about KO -- all I deal with are tech stocks, so I have no idea what the correct valuation for a soda-pop company is.
>>>It is impossible to convince me that the market-leading stocks (ie. the 10th of the S&P 500 that is moving the market higher) is not overvalued.<<<
The market-leading stocks are almost always "overvalued" relative to the rest of the market, yet lead the market higher -- that's why they're termed "market-leading", right? And being such, they have the tendency to drag the rest of it along for the ride...the "trickle-down" effect.
>>>I'm not saying technology isn't a wonderful thing, but there's a reason the market has moved sideways for the last six months...<<<
Asia.
>>>if you think the recent full employment won't eventually lead to higher inflationary figures, then I think you're missing a key component of the economic picture.<<<
Ah, but "eventually" can be such a looooooooong time...and by then, other factors will likely be to blame as well. Also, considering how low inflation is currently, "higher inflationary figures" may not be so bad -- in fact, those figures could be marginal. Greenspan and the other great minds seated on the Fed have admitted that they are re-evaluating their role in monetary policy. They are very aware that we may have entered a new era economically, requiring new perspectives and strategies (time to combat DEflation?). In time, all things change...the Renaissance, Industrial Revolution, and so on. What will this era be termed? The Age of the Internet? Technology? I wonder what was considered "overvalued" back then...
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