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Why is it that when a corporation (streamlines) their operation they become more valuable and their stocks rise? Why, during this long and painful (to most) recession, is Wall Street kicking arse during the same period?
The government has been printing money to pump up Wall St QE1 & QE2, rumors of QE3. Corp profits have been pretty due to cutting staff and running more efficiently. Even though many companies aren't seeing growth in revenues.
If you look at the price/earnings ratio it tells you if the market is inflated or not currently the Dow Transportation ratio is pretty high the others are in a good range. Traditionally the PR ratio would be in the 12-15 area beyond that you have a bubble.
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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."
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Why is it that when a corporation (streamlines) their operation they become more valuable and their stocks rise? Why, during this long and painful (to most) recession, is Wall Street kicking arse during the same period?
PF13 answered this pretty well. But I'll also add that if any company can maintain their income and reduce their payroll (workforce), they're more profitable.
Payroll is by far & away every company's largest cost. But you & I would prefer they lay off their CEO instead of 150 employees...but we won't see that happen.
__________________ "No one walking this earth knows what is truly righteous"
Last edited by PatriotsReign; 06-17-2011 at 08:39 AM..
The most important employment water-mark is the weekly job loss number as PF13 has posted several times. This is THE number Wall Street and other economic watch-dogs look at.
If you follow the employment situation on a week to week basis, this is the number everyone looks at to gain a clear picture of the direction employment situation.
The reason this number is so important is because even if we are adding many jobs, it means nothing if we're losing them at a continuously alarming rate. Anything over 400k job losses in one month is very significant (even if we are adding more than 400k new jobs).
PF13 is correct in expressing it's importance.
Every single week, The Jobs Report is published and the #1 number is the one showing the amount of new people seeking unemployment benefits (414k).
For example;
Jobs report pushes Dow Jones higher
"The pace of new home construction quickened last month and the number of people who applied for unemployment benefits fell last week to 414,000, more of an improvement than economists expected. Weekly applications for unemployment have been over 400,000 since April, a rate that suggests job growth is still slow"
Actually, if you followed the thread, 13 claimed another measure was the most important figure.
The figures I talked about and responded to shemmy about are interrelated, in trying to play gotcha you are trying to determine the number of leaves on a particular tree and missing the forest.
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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."
Actually, if you followed the thread, 13 claimed another measure was the most important figure.
I actually read every post. The job LOSS number is the first thing one looks during a recession (I know, we're not even in a recession, right?). It doesn't even matter if more jobs are being added when we have 400k+ losing jobs every week.
PF13 was right in saying anything over 400k job losses will typically affect markets negatively and is not indicative of a recovery.
Nothing P13 wrote was wrong regarding these numbers. Just my opinion, but you were just creating a circular argument based upon nothing really. It appeared that you were almost looking for points to criticize him in this thread and there weren't any regarding the numbers.
__________________ "No one walking this earth knows what is truly righteous"
Wall Street plans to get smaller this summer. Faced with weak markets and uncertainty over regulations, many of the biggest firms are preparing for deep cuts in jobs and other costs.
The cutback plans are emerging even as Wall Street firms have mostly recovered from the financial crisis and are reporting substantial profits again. But those profits are not as big as they were before the crisis, and it is expected that in the coming months it will be even more difficult for firms to make money. Worries about debt in Europe and the shape that the Dodd-Frank financial overhaul rules will ultimately take, combined with the usual summer doldrums, are prompting banks to act.
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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."
I actually read every post. The job LOSS number is the first thing one looks during a recession (I know, we're not even in a recession, right?). It doesn't even matter if more jobs are being added when we have 400k+ losing jobs every week.
PF13 was right in saying anything over 400k job losses will typically affect markets negatively and is not indicative of a recovery.
Nothing P13 wrote was wrong regarding these numbers. Just my opinion, but you were just creating a circular argument based upon nothing really. It appeared that you were almost looking for points to criticize him in this thread and there weren't any regarding the numbers.
We'll have to agree to disagree, then.
I judge matters based on the bottom line. The NET.
Others buy 1 star rated, bottom performing mutual funds as long as they have no-loads and very low expenses. They judge based on one side of the ledger. Bless their poor hearts.
400,000 on one side of the ledger mean less today in the more mobile economy than it did 20 years ago before the internet, Linkedin, Monster.com, etc.
There are plenty of people out there with assets over $3 million, but debts over $4 million. They are not better off than people with assets of $500,000 and debts of $100,000.
The world runs on the bottom line - - the net.
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"They (Patriots) may be the greatest team ever" - Chris Mortenson, January 18, 2005 on espn.com
54,000 jobs/month doesn't even cover people entering the workforce or illegals entering the country.
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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."
4Likes
Re: The economy this week
). It doesn't even matter if more jobs are being added when we have 400k+ losing jobs every week.
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