Yes, the market’s numbers have been higher and setting records, but why?
Many companies have borrowed money at near zero interest rates and are buying back their own stock. This reduces the amount of profit paid out to shareholders, and with the company buying more (generally not caring what share prices are paid), the demand rises, so prices climb.
The largely untold story: Many corporate executive salary bonuses are based on share prices. The term is “motive”.
The total value in this overinflated market is represented by fewer and but larger companies that when the NASDAQ crashed in 2001-3, took over 80% of that index value off the table.
How soon we forget: Many planning retirement then planned to work another 5-10 years so they actually could retire. The S&P 500 lost almost 50% 2001-03.
Losing 18 years of growth waiting for a market to come back is a good way to end up in line at the soup kitchen; metaphorically speaking…
Come learn something different that can insulate you from a crashing market and net you the gains from the incredible growth during a recovery. See my website tab at: https://davidpandone.com/services/ read about the benefits, watch a video or two, and click through a “get started” or “tell me about yourself” link. We’ll start a conversation and help you understand how these strategies work and get your questions answered.
Some of these strategies have been used by the truly wealthy for over 100 years since 1913… Tried and true, not the next flash in the pan.