Sunday, December 7, 2014

My Nomination for the Short-Term "Sure Thing" Unsustainable Exponential Trend Failure on a Long-Term Unsustainable Parabolic Trend of the Century Award: Dividends vs. Wages

It's a very prestigious award. There can be only one. I've therefore put a lot of thought into my nomination, lol. Sigh.

The following chart shows the 1-year moving average of corporate net dividends divided by wage and salary accruals.

Click to enlarge.

1. The short-term "sure thing" unsustainable exponential trend in blue failed one year ago (as seen in the chart, it's very similar to the failure in the first quarter of 2008).

2. We've fallen back to the long-term unsustainable parabolic trend in red.

What could possibly go wrong over the short-term and/or the long-term?

December 7, 2014
Retirement: How to beat 'bag lady syndrome'

There are myriad of financial instruments, but the reality is, going back 100 years, stocks outperform every other asset class.

What beats bag holder syndrome?

This is not investment advice.

Source Data:
St. Louis Fed: Custom Chart

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