1987 was proof that the stock market and the economy aren't in lockstep with each other.CurlyDave wrote: ↑Wed May 23, 2018 12:17 amI don't think this is really true. There are at least three ways the S&P can grow. One is as the economy grows, a second is that the S&P 500 could increase the share of the total economy that it represents, and a third is that profitability and/or productivity could increase.
Now, what do I mean by "total economy". This is not just the total stock market but is actually the total world economy. Even if we limit ourselves to just the US economy there are lots of mom and pop operations which are not part of the US stock market, but which can lose market share to S&P 500 companies. An example is Amazon, which is knocking the stuffing out of traditional retail, taking market share from small retailers. And, almost all S&P 500 companies have international sales, and they can grow sales in lots of non-traditional areas.
So, there is lots of room for growth in the S&P 500.
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“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
I don't know. I'd need to look into the crystal ball to see whether I should.willthrill81 wrote: ↑Tue May 22, 2018 8:39 pmGood point.whodidntante wrote: ↑Tue May 22, 2018 7:14 pmIf you repaired a crystal ball, would you give it back?