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SPDR S&P 500 ETF Message Board

  • dipinvester dipinvester Jul 22, 2013 10:50 AM Flag

    So what happens when economy finally recovers?


    Does that mean stocks and houses will be selling for 50% discount? Or will the prices multiply by 2 or 10?

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    • I don't think you get it. BECAUSE of what they are doing, this IS as good as the "recovery" gets. Returning to Greenspan's old 3% to 4% real GDP "long term normal trend growth" isn't possible. They've created a new "normal" which is HALF that.

      GDP is all purely academic though and this is a stock market board. The stock market can easily put in 10%-20% gains with this slow steady low-growth GDP. It proves the basic flaw in using fundamental economic models in projecting where the stock market will be. Income dispersion and global investors causes a complete disconnect. It never was a good predictor to begin with and only has been sold because in HINDSIGHT it sounds like good idea to the "average American investor" who likes to think the world revolves around the American economy.

    • When the economy reflates, the black swami will pronounce himself da king.
      Chocolate Cake will be the food of da masses..... eh,,,,,,. demasses.

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