THE DECLINES SEEM UNSTOPPABLE...FOR THE DOW AND STOCKS IN GENERAL...
WHAT COULD STOP THE PLUNGE...
DIVIDENDS...!
COMPANIES HAVE BEEN PAYING YIELD ONLY TO BOND HOLDERS...
THE STOCK HOLDERS WERE SUPPOSED TO BE "HAPPY WITH" A MERE LOTTERY TICKET ON MORE ASSET INFLATION....
BUT THIS IS NOT THE WAY IT "USED TO BE" IN THE OLD DAYS...
ONLY RECENTLY HAVE CORPORATIONS CONSIDERED DIVIDENDS TO BE "OPTIONAL" OR UNNECESSARY FOR "RISK LOVING" STOCK HOLDERS...
CORPORATIONS MOSTLY PREFER "STOCK BUYBACKS" WHICH GOOSE THE CEO'S OPTIONS...BY MAKING THEIR STOCK LESS WATERED DOWN... WATER DOWN OF COURSE BY THE MASSIVE ISSUANCE OF CEO OPTIONS...!
RIGHT NOW THERE IS NOTHING TO STOP COMPANIES FROM PAYING A DECENT DIVIDEND TO SHAREHOLDERS...
AND TRUST ME...ANY STOCK THAT PAYS A DECENT DIVIDEND WOULD BE SELLING AT MUCH MORE STABLE PRICES THAN CURRENTLY PREVAIL...
AFTER ALL WHAT IS THE "TRUE VALUE" OF A MERE LOTTERY TICKET...ON THE NEXT ASSET BUBBLE...?
WELL...ZILCH....!!
NO WONDER STOCKS ARE STILL FALLING...AND EVERYONE IS RUSHING TO CORPORATE DEBT...
YIELD BABY, YIELD...!
THE "CURE" FOR WALL STREET MORE THAN ANYTHING THE FED CAN PRINT...OR CONGRESS CAN PASS...IS DIVIDENDS!
THIS NOTION THAT ANY ASSET CLASS...ANY ASSET!...CAN HAVE A "VALUE" WITHOUT A RETURN ON THAT INVESTMENT...IE. A "YIELD" IS JUST NUTS...!
SO NOW DOW 6000 NOW SEEMS INEVITABLE...
NOTE ALSO THAT THE GOLD BUGS SEEM TO HAVE A FEAR OF CROSSING $1000... OK...CIRCLE THE WAGONS...AND BUY OIL INSTEAD FOR A WHILE...
THAT'S WHAT HAPPEN TODAY...
MY HUNCH IS THAT GOLD $1000 IS JUST TO SYMBOLIC FOR MANY PEOPLE... GOLD $1000 COULD BE HELD OFF UNTIL LATER THIS YEAR...PERHAPS IN THE FALL...WHEN THE SHIT WILL REALLY HIT THE FAN...
AFTER THE "STIM" IS SPENT.... APOCALYPSE WOW...!!
