i really don't understand why there should be any sort of correlation between wealth of the top few percent and the valuations of companies......the last 20 years due to increased speculation, flat out lying by the financial industry, creating of all these various bullshit valuation metrics to make things look undervalued, they have conned people hoarding equities at overvalued valuations and speculating like mad with the proliferation of technology, easy trading, and such.....none of this has anything to do with fundamental valuations of companies......there is no such thing as this time is different in the investing world...that has been said time and again throughout history and has been proven false time and time again.....
the general pattern looking at long term cycles is extreme valuation will be met by an opposite reaction of extreme undervaluation at some point down the road.....at some point i don't know if it will be 2 years from now to 10 years from now but i'd be shocked if you didn't ssee that pe10 chart above go below 10 for instance.....and yields rise back to at least 4-5%....so for once in the past 20+ years we see truly value situations to buy in on equities.....at that point your average joe on the street will likely be shunning wall street altogether and saying i've had enough with stocks and this rollercoaster ride.....
also the "explosion of wealth" is in the form of the elites concentrating more wealth into fewer and fewer hands.....currently the poor/rich gap is just as bad if not worse than than it was prior to the last great depression.......depressions level the playing field in the end.....the ones that have the most to lose are at the top not the bottom......as the bottom doesn't own many if any stocks.........
speaking of the mega rich....take a guy like bill gates.....he owns a boatload of MSFT shares but this is what he's doing as far as his holdings go
15-Feb-11 1,391MSFT Acquisition (Non Open Market) at $0 per share.7-Feb-11 5,000,000MSFT Automatic Sale at $28.20 per share.
(Proceeds of $141,000,000)4-Feb-11 5,000,000MSFT Automatic Sale at $27.71 per share.
(Proceeds of $138,550,000)3-Feb-11 5,000,000MSFT Automatic Sale at $27.65 per share.
(Proceeds of $138,250,000)2-Feb-11 5,000,000MSFT Automatic Sale at $27.99 per share.
(Proceeds of $139,950,000)18-Nov-10 2,000,000MSFT Automatic Sale at $25.87 per share.
(Proceeds of $51,740,000)17-Nov-10 3,000,000MSFT Automatic Sale at $25.72 per share.
(Proceeds of $77,160,000)16-Nov-10 1,000,000MSFT Automatic Sale at $25.82 per share.
(Proceeds of $25,820,000)15-Nov-10 1,000,000MSFT Automatic Sale at $26.29 per share.
(Proceeds of $26,290,000)15-Nov-10 1,145MSFT Acquisition (Non Open Market) at $0 per share.12-Nov-10 1,000,000MSFT Automatic Sale at $26.30 per share.
(Proceeds of $26,300,000)11-Nov-10 1,000,000MSFT Automatic Sale at $26.56 per share.
(Proceeds of $26,560,000)10-Nov-10 2,000,000MSFT Automatic Sale at $26.95 per share.
(Proceeds of $53,900,000)9-Nov-10 2,000,000MSFT Automatic Sale at $26.96 per share.
(Proceeds of $53,920,000)8-Nov-10 2,000,000MSFT Automatic Sale at $26.88 per share.
(Proceeds of $53,760,000)5-Nov-10 1,000,000MSFT Automatic Sale at $26.81 per share.
(Proceeds of $26,810,000)4-Nov-10 1,000,000MSFT Automatic Sale at $27.17 per share.
(Proceeds of $27,170,000)3-Nov-10 1,000,000MSFT Automatic Sale at $27.19 per share.
(Proceeds of $27,190,000)2-Nov-10 2,000,000MSFT Automatic Sale at $27.23 per share.
(Proceeds of $54,460,000)24-Aug-10 1,000,000MSFT Automatic Sale at $24.15 per share.
(Proceeds of $24,150,000)23-Aug-10 2,000,000MSFT Automatic Sale at $24.39 per share.
(Proceeds of $48,780,000)20-Aug-10 2,000,000MSFT Automatic Sale at $24.28 per share.
(Proceeds of $48,560,000)19-Aug-10 1,000,000MSFT Automatic Sale at $24.48 per share.
(Proceeds of $24,480,000)18-Aug-10 2,000,000MSFT Automatic Sale at $24.76 per share.
(Proceeds of $49,520,000) ..........
you get the picture.....
its all a game of distribution of the insiders to the masses......and getting the sucker masses to baghold as much overvalued crap that they can....
these guys can't hit a button and dump everything they own at once and turn it into liquid cash....
it takes them decades upon decades to unload it the suckers
the general pattern looking at long term cycles is extreme valuation will be met by an opposite reaction of extreme undervaluation at some point down the road.....at some point i don't know if it will be 2 years from now to 10 years from now but i'd be shocked if you didn't ssee that pe10 chart above go below 10 for instance.....and yields rise back to at least 4-5%....so for once in the past 20+ years we see truly value situations to buy in on equities.....at that point your average joe on the street will likely be shunning wall street altogether and saying i've had enough with stocks and this rollercoaster ride.....
also the "explosion of wealth" is in the form of the elites concentrating more wealth into fewer and fewer hands.....currently the poor/rich gap is just as bad if not worse than than it was prior to the last great depression.......depressions level the playing field in the end.....the ones that have the most to lose are at the top not the bottom......as the bottom doesn't own many if any stocks.........
speaking of the mega rich....take a guy like bill gates.....he owns a boatload of MSFT shares but this is what he's doing as far as his holdings go
15-Feb-11 1,391MSFT Acquisition (Non Open Market) at $0 per share.7-Feb-11 5,000,000MSFT Automatic Sale at $28.20 per share.
(Proceeds of $141,000,000)4-Feb-11 5,000,000MSFT Automatic Sale at $27.71 per share.
(Proceeds of $138,550,000)3-Feb-11 5,000,000MSFT Automatic Sale at $27.65 per share.
(Proceeds of $138,250,000)2-Feb-11 5,000,000MSFT Automatic Sale at $27.99 per share.
(Proceeds of $139,950,000)18-Nov-10 2,000,000MSFT Automatic Sale at $25.87 per share.
(Proceeds of $51,740,000)17-Nov-10 3,000,000MSFT Automatic Sale at $25.72 per share.
(Proceeds of $77,160,000)16-Nov-10 1,000,000MSFT Automatic Sale at $25.82 per share.
(Proceeds of $25,820,000)15-Nov-10 1,000,000MSFT Automatic Sale at $26.29 per share.
(Proceeds of $26,290,000)15-Nov-10 1,145MSFT Acquisition (Non Open Market) at $0 per share.12-Nov-10 1,000,000MSFT Automatic Sale at $26.30 per share.
(Proceeds of $26,300,000)11-Nov-10 1,000,000MSFT Automatic Sale at $26.56 per share.
(Proceeds of $26,560,000)10-Nov-10 2,000,000MSFT Automatic Sale at $26.95 per share.
(Proceeds of $53,900,000)9-Nov-10 2,000,000MSFT Automatic Sale at $26.96 per share.
(Proceeds of $53,920,000)8-Nov-10 2,000,000MSFT Automatic Sale at $26.88 per share.
(Proceeds of $53,760,000)5-Nov-10 1,000,000MSFT Automatic Sale at $26.81 per share.
(Proceeds of $26,810,000)4-Nov-10 1,000,000MSFT Automatic Sale at $27.17 per share.
(Proceeds of $27,170,000)3-Nov-10 1,000,000MSFT Automatic Sale at $27.19 per share.
(Proceeds of $27,190,000)2-Nov-10 2,000,000MSFT Automatic Sale at $27.23 per share.
(Proceeds of $54,460,000)24-Aug-10 1,000,000MSFT Automatic Sale at $24.15 per share.
(Proceeds of $24,150,000)23-Aug-10 2,000,000MSFT Automatic Sale at $24.39 per share.
(Proceeds of $48,780,000)20-Aug-10 2,000,000MSFT Automatic Sale at $24.28 per share.
(Proceeds of $48,560,000)19-Aug-10 1,000,000MSFT Automatic Sale at $24.48 per share.
(Proceeds of $24,480,000)18-Aug-10 2,000,000MSFT Automatic Sale at $24.76 per share.
(Proceeds of $49,520,000) ..........
you get the picture.....
its all a game of distribution of the insiders to the masses......and getting the sucker masses to baghold as much overvalued crap that they can....
these guys can't hit a button and dump everything they own at once and turn it into liquid cash....
it takes them decades upon decades to unload it the suckers
if you got some free time and want some good reading regarding long term valuation metrics amongst other things
read some of hussman's stuff.....
he can explain it alot better than me as he is formally trained in the area.....and is one of the few left today that isn't part of the overall charade that is the financial services industry
http://www.hussmanfunds.com/weeklyMarketComment.html
read some of hussman's stuff.....
he can explain it alot better than me as he is formally trained in the area.....and is one of the few left today that isn't part of the overall charade that is the financial services industry
http://www.hussmanfunds.com/weeklyMarketComment.html
here's a good one to start with titled anatomy of a bubble
http://www.hussmanfunds.com/wmc/wmc110314.htm
http://www.hussmanfunds.com/wmc/wmc110314.htm
