Employment, compensation and mergers have all bounced back in the financial sector, and profits are not far from their 2007 highs.
http://www.nytimes.com/2015/05/19/upshot/wall-street-is-back-almost-as-big-as-ever.html
The 2007 WS was feeding off the housing bubble. The current one is feeding off the overheated tech…
are you sure about “overheated” is the right word here?
I think the market is going much higher from here because money from all over the world are coming to US.
Enjoy the ride. I know I am.
I kind of hope it would crash for a day, so I can reinvest what I took out awhile ago.
People have been calling a top since S&P was at 1600. Those got out then are missing 30% gain.
a 30% drop could happen, but really unlikely for a while, IMHO.
Housing is not going up, gold is flat, oil is near bottom, where else do you go with $$? To the Moon!!!
Well I guarantee you a massive drop right after I invest all cash left in my account!
Ha Ha Ha, I know and share the feelings.
So, do baby steps like … … a month.
Sorry, had to remove the numbers. I don’t want this thread to get locked up.
Bus, wait let me cash out mine before you invest in the stock market. I too has converted some stock to cash because I’m going to have to transfer my 401k account to my Vanguard when I retire.
Okay, I’ll wait to you’re out. Will let you know when I’m gonna do it so you can make sure and pull everything out, because guaranteed, a good 1,000 point drop in a week when I do it! Because basically, I have the worst luck, and totally suck when I try to time the market.
The housing market is, in many areas, as hot as the stock market. In some areas it is hotter.
I wonder if “too big to fail” is going to work the second time around.
It seems that way. I’ve been solicited by 3 cash buyers for a dinky, rundown house. Not in top area.
In my area, there are new houses in the $3-5 million range with no contingency, cash only buyers. I think they are selling like hot cakes especially the ones with view. Very tempting. My husband and I are going to see if it’s worth it.
Darn. Wish I was trying to sell my Mom’s house now. Couldn’t she have waited another 5 years before she died?
Oh to only have those five years. Miss her.
Yes the housing market is very hot in some places. To quote my D1 trying to buy in Manhatten–" I’m ready to give up. The whole thing is a nightmare?"
And I am glad to still have a decent chunk of retirement in the stock market, although I have reduced it as I am approaching retirement. But if I had the same percentage in stocks I had before 2008, I’d have a lot more. But if I had totally or near gotten out of stocks, I’d be a lot worse off. So I guess I should be happy.
I’m in the camp, don’t worry be happy. Kids will take care of themselves. I have seen housing boom and bust a few times, once I got in at the peak(learn a great deal) and after that only got in at the bottom.
The kids will not only take care of themselves, they will take care of me in my old age (if DH isnt still alive). I have it in writing. OK, so he wrote it when he was 10, but the document is almost 19 yrs old so its of legal age!
If you look at the P/E ratios of Tech companies and compare to any other industry, the Tech companies are way higher. And it’s my understanding that they’re high for Tech historically even, but maybe not as bad as right before the dot-com crash (not looking it up, maybe someone who knows the subject can say). ’
I don’t think it’s unreasonable to be uneasy about the high tech prices.
Bond yields are still low, which tends to go with a strong stock market. When they start going up some contraction in the stock market would be expected.
Not all tech sticks have high P/E ratio, for example Apple had about 12 if I remember. Within the tech sector, there is sector rotation, such as the one in the social media, they are chasing after the same ad dollar so I would stay away from them. But I believe the trend is up but that doesn’t mean there is no correction. I first learn to invest in 1982, the market was low then it went up, then there was a 20% correction in 1987, then it keeps going up. Only one time we had a serious correction was 2008-2009 time frame when it was discounted neatly 40%, which I think is less likely now, but I believe the 10-20% correction is possible. In 2014, there was almost 2-3 times almost 10% corrections.
The market is at a new permanent high! =))