Back in 1958 we had an economic professor at B.U. tell the class that not one student in that class would live long enough to see the Dow hit 5000. I am still here.
|1,000||November 14, 1972||76 Years|
|2,000||January 8, 1987||14 Years|
|3,000||April 17, 1991||4 Years|
|4,000||February 23, 1985||4 Years|
|5,000||November 21, 1995||9 Months|
|6,000||October 14, 1996||11 Months|
|7,000||February 13, 1997||4 Months|
|8,000||July 16, 1997||5 Months|
|9,000||April 6, 1998||9 Months|
|10,000||March 29, 1999||12 Months|
|11,000||May 3, 1999||1 Month|
|12,000||October 19, 2006||7 Years, 5 Months|
|13,000||April 25, 2007||6 Months|
|14,000||July 17, 2007||3 Months|
|15,000||May 7, 2013||5 Years, 10 Months|
|16,000||November 18, 2013||6 Months|
|17,000||July 3, 2014||8 Months|
|19,000||December 23, 2014||5 Months|
76 Years to hit 1000 and accelerating as shown above, hitting 5000 in 95. Is there anything beyond the greater fool in the casino causing this. Out side of IPO’S not one cent in a stock sale goes to the corporation the stock represents. Some small number of firms do grant small dividends. Real gains come from buying at X, expecting in the reasonable future to sell at X +. The buyer at X+ expects to sell later to the greater fool at X++. Corporate performance is the sham used to justify the increasing price. Most corporations are interested only in quarterly performance and stock options; and little to nothing of earnings are ever shared with the stock holder.
They have come up with great ideas to play the casino, Hedge Funds, swaps and other esoteric forms of making a buck. In my opinion it is all smoke and mirrors, with no connection to reality. To make it worse the game is often played on a rigged table or with stacked cards.
The house of cards can not stand forever, and it will not. Who has the best seat in this game; your broker, who gets a commission on sales and buys.
Should every employee, since they really CREATE the profits get their share every quarter?