I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Friday, September 28, 2012
The Cone of Dividend Uncertainty
Click to enlarge.
I'm gonna need to go ahead and pass on that. I have some long-term expenses coming in, and I need all the long-term certainty I can get. So if someone else could just go ahead and buy stocks for me so the economy doesn't utterly collapse, that would be terrific...mmKAY?
The rub of course is that there's no fundamental law of economics that says that the money must flow into dividends, especially if the you know what and the fan meet up.
I think this chart does a pretty good job explaining why TIPS have done extremely well over the last decade though.
Buy one stock at the regular price and get another stock absolutely free*. If you buy within the next 72 hours we'll even throw in a free iPhone**. Ask our operators about a special bonus gift for bulk purchases***.
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re the previous thread, there is one thing that is driving stock valuations up . . .
ReplyDeleteAccumulated trade deficint
that money has nowhere else to go, not until we establish a moon colony or something.
Nice chart. I'd say the increasing spread is partly due to increased international competition and acceleration of technological change.
ReplyDeleteTroy,
ReplyDeleteThe rub of course is that there's no fundamental law of economics that says that the money must flow into dividends, especially if the you know what and the fan meet up.
I think this chart does a pretty good job explaining why TIPS have done extremely well over the last decade though.
Scott,
ReplyDeleteI would definitely add leveraged debt to the mix.
The more we leverage, the wilder the swings (in both directions).
Re: buying stocks. You first.
ReplyDeleteWho Struck John,
ReplyDeleteWe'll make you a deal.
Buy one stock at the regular price and get another stock absolutely free*. If you buy within the next 72 hours we'll even throw in a free iPhone**. Ask our operators about a special bonus gift for bulk purchases***.
* Just pay separate processing, shipping, fuel surcharges, sales taxes, and handling.
** 2-year service contract is required.
*** A large eco-friendly reusable box will be shipped with your order.