Aside from Zimbabwe, which I'll admit has had it's problem before and after a change in the power structure, and will until they stop their apartheid. MSFT is just another example of a BAD precedent set some years ago, by paying their employees mostly in stocks, Like Cisco. How many people on the planet own MSFT??? Not very many I am thinking, and when the share can't be sold for the promised amount, then what??? will it drop to $17 and change from $80+??? Then what? How many trillions of Dollars has the stock market complies printed? and how many Trillions has the Federal reserve printed??? Hostile Takeovers prohibit any Company today in having any assets, because some one with a bankers ear will use a companies assets to takeover the company... So get your magic wand out and tell me which company has anything but BS promise's and spin to lure investor's in???
The US market seems to be overvalued as there is no reaction even on positive news and earnings. Just look at the HPQ, CAMP, RECN - all of them have almost perfect fundamentals. It is very interesting to look on dynamic during new Autumn earnings season, but I guess it could be quite dissapointing...
Hi @J_C_Anderson I think the main problem here is that much of the expected good news is already in stock prices. The ongoing increase in US interest rates will impact economic growth with sales growth slowing and with the wage inflation lag increasing costs. This is a potentially dangerous part of the economic cycle.
For sure, such process creates the atmoshpere of uncertanity at the market. Day trading seems to be more consistent or even safe in these circumstances. During previous earnings season it was comfortable to buy on the second-third day after earnings, set the stop and wait for the movement for several days.
In my experience stock market corrections only tend to happen when they are least expected. However, I can see signs that some company valuations are becoming over extended and as sales growth slips and wage inflation grows this could seriously impact short to medium term growth prospects. Caution is required at the moment.
