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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
The Stock Market Is Booming. But Will It Last?...
Posted on 04/27/2007 18:57:43 | Link | Post Comment
The stock market has been a lousy barometer of the economy.
From the beginning of 2004 through the first quarter of 2006, economic growth averaged an impressive 3.4%. The Dow Jones Industrial Average rose just 6%. Since then, economic growth has slowed to a little more than 2%, yet the blue-chip index has leapt 18%, ending yesterday's session at a record 13089.89, the first time it has closed above 13000.
So, is the stock market providing reassurance? Or is it out of touch?
At present, the stock market isn't responding to recent profit growth. In fact, profit growth has fallen sharply, and the outlook is clouded by slowing U.S. productivity growth, high fuel prices and the specter of protectionism that could interrupt the pace of globalization, which has boosted U.S. companies' profits from overseas. Rather, the rally that began last summer has been principally driven by the Fed's decision to stop raising interest rates.
On another note, twenty years after Bonfire of the Vanities, Tom Wolfe checks in on the new masters of the universe and finds them even coarser and ruder than their predecessors could have ever imagined. The Pirate Pose is in the first issue of Portfolio Magazine. I bought the inaugural issue and it's a fun read. They are offering 12 issues for $12.
From the beginning of 2004 through the first quarter of 2006, economic growth averaged an impressive 3.4%. The Dow Jones Industrial Average rose just 6%. Since then, economic growth has slowed to a little more than 2%, yet the blue-chip index has leapt 18%, ending yesterday's session at a record 13089.89, the first time it has closed above 13000.
So, is the stock market providing reassurance? Or is it out of touch?
At present, the stock market isn't responding to recent profit growth. In fact, profit growth has fallen sharply, and the outlook is clouded by slowing U.S. productivity growth, high fuel prices and the specter of protectionism that could interrupt the pace of globalization, which has boosted U.S. companies' profits from overseas. Rather, the rally that began last summer has been principally driven by the Fed's decision to stop raising interest rates.On another note, twenty years after Bonfire of the Vanities, Tom Wolfe checks in on the new masters of the universe and finds them even coarser and ruder than their predecessors could have ever imagined. The Pirate Pose is in the first issue of Portfolio Magazine. I bought the inaugural issue and it's a fun read. They are offering 12 issues for $12.
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Examples
Morpheus Trading - Mon Jul 21, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
Morpheus Trading - Mon Jul 21, 2008 08:31AM
NOTE: Please click on the charts below to enlarge them i [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Millionaire Now! by Larry Nusbaum - Tue Jul 22, 2008 09:23AM
Hedge funds have made billions this year shorting the banks, [read more]
Hedge funds have made billions this year shorting the banks, [read more]
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