Senin, 16 Januari 2017

Daily Business Report

Daily Business Report


Why The Stock Market Has Soared (And We'll All Soon Know What It's Like To Be A Madoff Client)

Posted: 16 Jan 2017 06:10 AM PST



What is driving the US stock markets to such amazing gains?  While some corporations have seen increases in sales and most have innovated to reduce costs, lessen waste, and maximize efficiency, I'll focus on some of the other means that have driven profits higher helping to push US equities into record territory.

1- Declining % of profits going to Uncle Sam.

2- Minimal wage growth and holding the line on new hires.

3- Debt fueled stock buybacks and dividends at the expense of investment in mid and long term activities (R&D, cap-ex, exploration, etc.).
To represent the US market as broadly as possible, we'll use the Wilshire 5000 index, representing all 3600+ publicly traded US corporations (chart below vs. the 10yr Treasury rate).

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