- Tue Dec 13, 2016 8:34 am
#81071
The Stock Market is hitting new highs almost daily. The Transportation Sector has set records twice in a week. I personally think that investors should be worried and that a big dip is coming. When stock prices are high people invest more of their assets in stocks. With more of their assets tied up in stocks, people demand returns sufficient to reimburse them for taking a risk. Companies are finding it harder to increase dividends without losing market share. If the higher product prices result in increased inflation, people might rebel by buying a cheaper product or doing without the product.
If a dip comes and stocks have been bought on margin (credit,) the Exchange will issue a "margin call" which is a requirement to come up with enough cash to ensure that the stock can be paid for.
And then...If the Stock Market is so sound why are banks and major investors dumping their stocks?
http://wolfstreet.com/2016/12/09/if-eve ... cord-pace/" onclick="window.open(this.href);return false;
Even respected advisers agree.
http://new.fortune.com/2016/08/30/stock-market-worries/" onclick="window.open(this.href);return false;
http://www.forbes.com/sites/johnmauldin ... 06c7ff7e25" onclick="window.open(this.href);return false;
If a dip comes and stocks have been bought on margin (credit,) the Exchange will issue a "margin call" which is a requirement to come up with enough cash to ensure that the stock can be paid for.
And then...If the Stock Market is so sound why are banks and major investors dumping their stocks?
http://wolfstreet.com/2016/12/09/if-eve ... cord-pace/" onclick="window.open(this.href);return false;
Even respected advisers agree.
http://new.fortune.com/2016/08/30/stock-market-worries/" onclick="window.open(this.href);return false;
http://www.forbes.com/sites/johnmauldin ... 06c7ff7e25" onclick="window.open(this.href);return false;
- By johnforbes