Even as markets hit new highs, a recent Black Rock and WSJ survey shows how many out there still have very little exposure to the greatest wealth building machine (over the long-term) ever created.
The point is simple: We are at all-time highs and the mental scars of the last 10-15 years have again taken their bite.
In 1982, US GDP was $6.4 trillion and growing at the very fast pace of 4%, or $240 billion new real dollars of output. Today, we stand at $18.2 Trillion, growing at a paltry 2% – or $360 billion in new real dollars of output. The numbers can easily fool you if you’re not paying attention.
For months now we’ve been told by various media outlets and the “BSHS” – Black Swan Hunter Society – that one of the very few reasons left to “prop up” the stock market is stock buybacks. It’s as if the masses have bought into the idea that stock prices would collapse to zero if there were no buybacks. But would that be at all rational?