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?



Source Data:
St. Louis Fed: Real Dividends per Capita (August 2012 Dollars)

6 comments:

Troy said...

re the previous thread, there is one thing that is driving stock valuations up . . .

Accumulated trade deficint

that money has nowhere else to go, not until we establish a moon colony or something.

Scott said...

Nice chart. I'd say the increasing spread is partly due to increased international competition and acceleration of technological change.

Stagflationary Mark said...

Troy,

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.

Stagflationary Mark said...

Scott,

I would definitely add leveraged debt to the mix.

The more we leverage, the wilder the swings (in both directions).

Who Struck John said...

Re: buying stocks. You first.

Stagflationary Mark said...

Who Struck John,

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