Porc et al,
Here's my first question on all this stuff.
I get the general ideas on all the production cost parts and the corporate profitability stuff.
I also get the parts on inflation and spending etc...
The question that keeps churning through my head when I look at the markets today goes something like this:
All these variables that are used seem to be ahead of themselves!
They appear to me to be based on what I would classify as World War II standards. (No disrespect here)
1) We have population growth.
a) Is this because there are more babies being born? Or is it
because more people are living longer?(ie: 70 1/2)
b) If it is the second, of these people, how much money do
they control and how much is income they receive from
managed funds. That they spend and cycle back
into the economy,without being counted as part of the work
force? (Hope this makes sense as a question)
2) Due to the economic growth over say the past 10 years (arbitrary
number)
a) how many people have dropped out of the work force and turned
say investing on their own as a means of employment? Hence
removing themselves from the unemployment figures, thus skewing
the monthly unemployment numbers? Dropping the unemployment
rate and increasing the inflow of money to the market not
just through mutual funds and IRA's but also personal
investments through a greater dependence on the markets
and increased cash flow FOR the markets.(I know of at least
one person that's done this and I bet if they check. There
are a whole lot more of us! None of which are tracked or
counted)
b) I've never seen any studies of this type. I really believe if
statistics were run on this: You may find at least part of
reduced unemployment figures, your over valuation in
stock prices and maybe part of why the markets continue
to rise.
c) This whole thing may sound too simple or even stupid
but as it stands the reasons given in the news don't
make any more sense to me.(here again maybe I'm stupid)
If you put money in the market,(buy stock) The money is
used to produce goods. The goods are sold to people who
need them.(maybe even me in some cases) The company
makes a profit. The stock price goes up. I sell the
stock and make a profit. Pay for some of the goods with
my profit. Reinvest the rest of my profit to make my cash
reserve grow.
d) The cycle continues the market grows. It's very interesting
to me, but I just get the feeling at least, the Government,
is leaving out some information to skew the picture in
the direction of, making themselves look good, more than in
the direction of accurate statistical analysis.
Porc... I hope these questions make sense as I really did try to ask them clearly and sincerely. I hope ya'll can discuss at least some of this stuff or direct me to some information.
I really don't think todays markets are a bull or bear thing. For me they are a necessity thing!
Best of luck to ya'll,(I'll check back in later)
Jay
PS. You end up with two factions here.
1) Individual investors who are their own little uncounted
companies, that have no impact on statistical data. They're
basically money factories that pay taxes.
2) Corperations/Funds, Investment advisors: The few counted
employees who invest for the masses of senior citizens
who are not counted statistically except for taxes and
who control major chunks of wealth. Who I also happen to
believe hold a pretty substantial ratio of the population! |
