***OT***RE-->>Market bubbles<<
"Market bubbles drag the entire market higher."
You can say the statement is true if you think there is a stock market.
Or, you can say the statement is false if you think there is a market of stocks.
Or, in truth, you can say just about anything you want. People do.
Does value exist? Should people invest in depressed sectors of the market (oils, farm equipment, steel, paper, etc.)?
I think so. With a small part of their funds. Each person decides his own selections and % invested.
Are you guaranteed a good return on this "depressed sector" bet?
1. what is a good return?
10% return is not considered good if DJIA and S&P500 return 15%
On the other hand, 10% is considered good if the market (DJIA, S&P500) is up 5% or less.
2. there are no guarantees in the stock market.
There is no guarantee the depressed sectors will outperform the market.
There is no guarantee the depressed sectors will return 10% annually. (From a historical perspective, 10% annual return is close to very long-term return of stock market. But that is for stock market, not specific stocks, and that is over a long-term horizon).
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As a loyal American (I live in the United States), I am invested in the great US stock market. I am also invested in the depressed sectors (through index funds) because I believe in America and all it stands for (whatever that means, because the meaning seems to change depending on which person is speaking, and the specific time-period that person is doing the speaking).
Do I believe in value? Certainly. Do I believe that value is flexible? Certainly. Do I believe that people sometimes get up the wrong side of the bed? Maybe.
Regards, and best wishes,
Larry
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