The Stock Market is almost always a bubble (not because of Obama).?

[Jack]

What is the return from the profits of the stock you own? nil

Most people who own stock want the value of the stock to increase.

It is shaky and foolish and if you want to know something stupid about "Capitalism", here it is.
The rich aren't going to let it go.

Every person in Congress, save a few, are born millionaires.

They are not going to buck the system. You have been fooled all your life about the best way to be alive.
The rich aren't going to let it go.

Every person in Congress, save a few, are born millionaires.

They are not going to buck the system. You have been fooled all your life about the best way to be alive.

[Stuart]

a bubble is the result of greed. this is not a time of greed. there is still a lot of fear in the economy.

[888]

Sorry but Obama saved the economy

[589]

When you study finance, you learn about the concept of "risk."

You also learn to tell the difference between a bubble and market that's based on the intrinsic value of a stock.

When the price is way too high compared to the fundamental intrinsic value of the stock, it's a bubble.

They call that "overvalued."

[Rick B]

Not really sure what you are asking us.



What is the return of stocks I own? Nil

No, I had a 17.1% return on my 401(k) account last year. Only about 50% was invested in domestic stocks. Of course we want the value to increase.

But, I have almost half of my money in a money market account and have been moving money to it gradually over the last few months. WHEN the bubble bursts, I will have plenty of cash on the sidelines to take advantage of the buying opportunity.

[Lee]

There are millions of people timing the market and most are making money. if the weren't there won't be a stock market. It's like a poker game. if you're good you make money . If not, stay out of the game. The people who make the most money is the stock brokers. that why you should study the market and be self directed .

[zirp]

Yes, or actually, it's more of a casino

please don't abuse the additional details for chatting

[kelby7670]

You are loaded with misinformation.

[Infinity]

Only some stocks are overvalued, such as Facebook, Twitter, and dare I say... even Amazon. Coming from someone who uses their Kindle Fire more than their laptop, and uses the Kindle store frequently, I can tell you that Amazon has been cutting back on the benefits of having their 'Prime' service. Consider that this time last year, Amazon Prime was pivotal to their growth strategy, it's puzzling their P/E ratio would continue to clime, despite discouraging customers such as myself from becoming a Prime member.

As for Facebook, advertisements will always undermine the purpose people use the site. Albeit tolerated, advertisements will always be an unwelcome impediment to communicating with another human being. Currently, the P/E ratio doesn't reflect this, but it will. More importantly, people seem to forget the purpose of investing. Profit. A company cannot profit if it constantly buys companies that are worth more than its revenue. Indeed, there will always be Instagrams, and Snapchats. They may disappear, or they may replace Facebook. Regardless, Facebook doesn't have enough revenue to warrant their purchase.

Then there's Twitter, a quasi-social network, and sporadic news outlet. This company can't turn a profit, despite a surge in advertisements. Given, that the site is barely useful to begin with, clogging it with ads will make it utterly useless.

Suffice to say, despite what P/E ratios suggest, there will be no company with a $trillon market cap. When Apple reached a $500 billon market cap, it seemed like a possibility. Yet, now it's clear Apple reached its limit. The same can be said for Google, which ramped up their advertisements this year, and tried to coerce Youtubers to sign up for Google+.

Indeed, there's a universal law in nature. The easiest way to gain an advantage is to grow in size. Yet, inefficiencies always arise as a result. Inevitably, a smaller, more effecient replacement prevails.

[Heretic]

It's all based on what you can make people believe. Silver is now the new hedge against inflation, will it go above $50.00 an ounce this time? Invest now. Demand is at an all time high. They did this once before and drove the price almost to $50.00 an ounce, then one man sold 93 million ounces of silver in one morning and drove the price down into the $30.00 range, now it's in the $20.00 range. But if only they can drive it back up for another profit taking.