Conversations about the stock market occur often, and for good reason. Our nation is living through an over 50% decrease in the value of the DOW and Americans have lost trillions in wealth.
Usually the conversations begin with “did you see the DOW tank today” and just about every conversation includes thoughts and opinions about where the bottom will be and what value stock markets could return to when the economy recovers.
I might be 100% wrong, but I doubt stock markets will ever, within the next few decades anyway, reach the values we enjoyed a short time ago. In markets throughout the world, American debt helped fuel growth and created a false perception of wealth.
We purchased everything using credit cards or home equity loans. Early morning coffees at Starbucks, laptop computers, cars, clothes, dinners and anything else that was marketed to us was purchased with plastic. Our nation grew on debt.
The products and services that banks bought, and American’s repaid in monthly payments increased the value of everything; these value’s are as fake as Santa Claus and the profits that companies enjoyed were too. Most of these companies will never again sell as much as they did, they will never be as profitable.
I call the true value of the DOW around 10,000 or 11,000, what say you?
I totally agree. Even almost 2 years after the crash the market has not reached its height, and it probably never will. I’m not entirely sure thats a terrible thing…
I don’t think it’ll come back either.