Did things not go smoothly?

Naomasa298

Forum Staff
Apr 2010
33,712
T'Republic of Yorkshire
#91
It's best we just say that we have fundamentally different views on the way the world works. For you to say things like stocks don't reflect a companies financial figures is mind boggling to me. I'm confused with your entire response. You're talking about sub-prime mortgages, you're all over the place. Do you know what happened in 2008 exactly?

I don't think there is anything left to discuss. You can have your opinion. We can revisit this next April when the economy has crashed. I'll remember to remind you, don't worry..
Share prices are a reflection of investir expectation of a company's future performance based on what the investors know, NOT a reflection of their current position (though that future expectation might be based on their current position), and how much demand there is to buy those shares. It does not reflect the performance of the economy, except that if the economy is on the rise, investors expect companies to do well. And if more people want to buy a share, the price will rise regardless of how well the company is doing. Ever heard of a pump 'n' dump?

Dan's point is that due to tax cuts, companies have money to buy back their own shares, thus inflating demand doe those shares and raising the price. They are not investing that money into expanding and improving their business.
 
Likes: Edratman
Jan 2019
130
USA
#92
Share prices are a reflection of investir expectation of a company's future performance based on what the investors know, NOT a reflection of their current position (though that future expectation might be based on their current position), and how much demand there is to buy those shares. It does not reflect the performance of the economy, except that if the economy is on the rise, investors expect companies to do well. And if more people want to buy a share, the price will rise regardless of how well the company is doing. Ever heard of a pump 'n' dump?

Dan's point is that due to tax cuts, companies have money to buy back their own shares, thus inflating demand doe those shares and raising the price. They are not investing that money into expanding and improving their business.
I understand completely what your points are. I just don't agree with you guys. I've heard the stance you guys are taking. You aren't the first ones to have come up with it. The reality is the stock market isn't so easily categorized. If you think it's as simple as outlined above, then there really isn't any reason to discuss anything further. It's just a completely different view on the business landscape.

With that amount of confidence though you could make a lot of money. I recommend you go guys go for it. We can revisit this again when the crash has occured next April. I have a reminder set..
 

Naomasa298

Forum Staff
Apr 2010
33,712
T'Republic of Yorkshire
#93
With that amount of confidence though you could make a lot of money. I recommend you go guys go for it. We can revisit this again when the crash has occured next April. I have a reminder set..
Understanding how the market works is not enough to make money on the stock market. The trick to it is understanding how OTHER investors are thinking, and being one step ahead of them.

Ever notice how the share price drops or barely moves when a company posts good results? That's because investors have anticipated the good results, and have priced it in before the results come out. But if you believe that the results will be significantly better or worse than expected, then you can make money.

A simple illustration of why stock prices don't reflect the business' position - look at Lyft, which floated a few days ago, valued at $15 billion. The shares rose 9% on the day they went public. Yet it is losing money, and has never been profitable. Clearly, the shares don't reflect that.
 
Aug 2012
1,554
#94
Did the second summit go as planned? No. But Trump has built a foundation for further diplomacy. If he wins another term, a discussion I won't get in to due to the rules here, he will have a further four years to try and sweeten relations with North Korea. It's an ongoing process, one marred by generations of mutual distrust, so the relationship won't work itself out over night. But Trump has at least started down the road of peace, and it will be up to his successors to carry on.