It's strange world we live in,much dissatisfaction in public psych,the feeling is the world is going hell in hand basket,however,the stock market goes up and up.How come? Well there deja vu,we've been there before and world is still here and good time do come.Also profit are driving stock market companies are making more with less revenues.This might explain why the unemployment remain high despite the recovery.
Today in Wall Journal in the money & investing section front page there is graph showing from 1990 to today the Price earning ratio(P/E) for the stock market it shows when the bull ended in 2000 the P/E ratio was 30 today it's 17 the avg. is 15 so maybe the bull of today has legs.
The fact companies are making more money with less revenues mean there are more efficient.Good thing? Well,it mean they employ less people it's what Joseph Schumpeter called creative destruction
yes it leads to unemployment,but lowwer and better goods,in long ran it's good for economy;however,Iam remeber what John Maynard Keynes said,"in the long ran we are all dead."
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