General Discussion
In reply to the discussion: Based on what I am hearing on the financial networks, Bloomberg and CNBC, one analyst after another [View all]Warpy
(114,793 posts)and don't realize there are two major ways to make money in the market: share price and dividends.
Share prices are likely to seesaw back and forth with the overall trend downward until the next Republican decides to increase the debt by another few tens of trillions by giving people who don't need them massive tax cuts. The age of fast money and the sky's the limit are coming to a close, and that's a very good thing.
Dividends, on the other hand, go up when business increases and business increases when more money gets into the hands of the people who actually do the work. And no, that 15% tax rate isn't going to cut into them appreciably. The tech companies that hid their profits overseas so they wouldn't have to pay taxes also don't pay dividends since no US profit is on the books.
What's got these guys seeing nothing but thunderclouds is the fact that the fast money years are over, the hot stock tips from now on are going to be for stodgy companies that pay their stockholders a share of the net profit. That depresses carnival barkers like Klayman and Cramer. Doom and gloom for those assholes means the market is going to go back to its normal self, one that's more sustainable.