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Stock Market Bubble?

By StoutFiles   Follow   Fri, 27 Jan 2012, 6:06am   1,138 views   5 comments
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Anyone else a little worried that the stock market is valued too high? I wonder just how much money we've been printing up...

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1. Quigley Follow Befriend (6) 17 threads 519 comments Huntington Beach, CA

   1   7:05am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike   Printing money would increase supply thus contributing to inflation and making companies more valuable in fiat dollars. This would help the argument that the stock market is fairly priced and should go up from here. I'm unsure of the direction, myself. I'm buying individual stocks that I believe in and have researched carefully rather than bet the entire market to go up. That seems to be much more of a crap shoot carny game to me.

2. StoutFiles Follow Befriend (1) 24 threads 557 comments

   2   7:21am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   Quigley says Printing money would increase supply thus contributing to inflation and making companies more valuable in fiat dollars. Artificially. Fed buys bonds with what amounts to Monopoly money, which allows for money in the stock market. The dollar would devalue and the market would crash again.

3. clambo Follow Befriend (5) 1,070 comments Santa Cruz, CA

   3   7:50am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   These are two issues. The stock market is not so much of a bubble, as a consensus prediction on whether a company's profits will grow or not. Some recent information about increased growth of sales and profits of Apple, Caterpillar, McDonalds, Walmart, etc caused their stocks to be bid back up in this auction. The low interest rates means that stocks with dividends are more attractive than money in the bank. The old saying that you should put your money into stocks at times like these is : "Don't fight the Fed."

4. edvard2 Follow Befriend 34 threads 2,103 comments

   4   9:18am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike   Am I? Nope. The thing to remember is that perhaps for the first time a lot of American companies are making the bulk of their profits from overseas- as in China and the Asia-Pacific rim countries.

5. Hysteresis Follow Befriend (2) 14 threads 648 comments

   5   9:25am Fri 27 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)   s&p 500 has been overvalued based on cyclical pe10, and q-ratio for a couple of decades. is it a bubble? no.