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Investors know the price of everything and the value of nothing!
"The Dow is playing palsy-walsy with 11,000 – an old friend not seen in years."
-WILL DEENER, Dallas Morning News
It seems the financial media is in search of pundits with "safe bets" in 2005 for the stock market. I guess it's no secret that investing in the 21st century has come to resemble gambling so much, that there's just no hiding it anymore. But no amount of window dressing, public perception management or anything else can cover up the fact that "2005 is going to be a tough year for stocks" Don Hayes tells CNBC.
Now, as the Dow approaches the magic 11,000 threshold, Wall Street bulls are again searching for visions of grandeur, despite the fact that the last time the Dow finished above 11,000 was four years ago in June 2001.
The fact is that since the market peaked in 2000, millions of people have suffered large losses, discovering that notions like stock splits and Internet companies ultimately do not yield profitable results. And yet today, too many people still know the price of everything and the value of nothing. I think investing is about buying value and building a margin of safety. The Dow at 11,000 offers neither.
The problem is that stock indexes tell investors very little about the individual stock and virtually nothing about it's true value. Stocks in general are "priced for perfection" in a world that's far from perfect.
Seven undeniable economic facts that Wall Street bulls like to ignore;
1) Confidence in the U.S dollar is faltering, the euro is becoming 'world money'.
2) Commodities like oil are skyrocketing, with no end in sight = inflation!
3) Interest rates are rising, which may be a pin in the real estate bubble.
4) The U.S. borrows about $1.8 B per day, totaling about $7.7 Trillion.
5) Nuclear proliferation is the major threat, as Iran, N. Korea illustrate.
6) U.S. government debt is $44 Trillion -- between Medicare and Social Security.
7) The U.S personal debt has grown to $9.3 Trillion, yet savings is only 1%
"We the people" have about $60,000,000,000,000 (Trillion) in acknowledged U.S debt. Divided by roughly 100,000,000 employed U.S households and you get about $60,000 debt per household - up from $25,000 just a few short years ago.
My point is that Wall Street is famous for whistling by the graveyard, pretending that we are "Donald Trump" wealthy -- that is, for appearance sake only. Borrowing endless "equity" from our homes to maintain the image.
The Wall Street club responsible for pulling the big money strings may pretend that they (and we) are above the laws of economics. But they (and we) are not. It is just this type of pride that has a history of bringing nations down.
"The Dow is playing palsy-walsy with 11,000 – an old friend not seen in years."
-WILL DEENER, Dallas Morning News
It seems the financial media is in search of pundits with "safe bets" in 2005 for the stock market. I guess it's no secret that investing in the 21st century has come to resemble gambling so much, that there's just no hiding it anymore. But no amount of window dressing, public perception management or anything else can cover up the fact that "2005 is going to be a tough year for stocks" Don Hayes tells CNBC.
Now, as the Dow approaches the magic 11,000 threshold, Wall Street bulls are again searching for visions of grandeur, despite the fact that the last time the Dow finished above 11,000 was four years ago in June 2001.
The fact is that since the market peaked in 2000, millions of people have suffered large losses, discovering that notions like stock splits and Internet companies ultimately do not yield profitable results. And yet today, too many people still know the price of everything and the value of nothing. I think investing is about buying value and building a margin of safety. The Dow at 11,000 offers neither.
The problem is that stock indexes tell investors very little about the individual stock and virtually nothing about it's true value. Stocks in general are "priced for perfection" in a world that's far from perfect.
Seven undeniable economic facts that Wall Street bulls like to ignore;
1) Confidence in the U.S dollar is faltering, the euro is becoming 'world money'.
2) Commodities like oil are skyrocketing, with no end in sight = inflation!
3) Interest rates are rising, which may be a pin in the real estate bubble.
4) The U.S. borrows about $1.8 B per day, totaling about $7.7 Trillion.
5) Nuclear proliferation is the major threat, as Iran, N. Korea illustrate.
6) U.S. government debt is $44 Trillion -- between Medicare and Social Security.
7) The U.S personal debt has grown to $9.3 Trillion, yet savings is only 1%
"We the people" have about $60,000,000,000,000 (Trillion) in acknowledged U.S debt. Divided by roughly 100,000,000 employed U.S households and you get about $60,000 debt per household - up from $25,000 just a few short years ago.
My point is that Wall Street is famous for whistling by the graveyard, pretending that we are "Donald Trump" wealthy -- that is, for appearance sake only. Borrowing endless "equity" from our homes to maintain the image.
The Wall Street club responsible for pulling the big money strings may pretend that they (and we) are above the laws of economics. But they (and we) are not. It is just this type of pride that has a history of bringing nations down.
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