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Originally Posted by tony404
Yeah thats what I read. You got to think its been madness, I had read like yahoo one year was supposed to do 5 bil in revenue and the stock dropped because it was below expectations.That's nuts and it seems if each quarter isnt 100% greater than the next its a loss. Maybe market wasnt meant to be 14000.
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Yeah it seems like a lot of time there is no rhyme nor reason why a stock is so much. Exxon continues to make record profits in the billions, yet their stock is at $62 but some companies that make little or no profit have stock that is around $200 or more.
When you look at it since 1980 the average household income has gone up a total of $9K a year (adjusted to today's dollars) which is about at 20% increase. Yet during that same time the DOW has gone from from 800 to 14000. It seems like it might be a little bit out of whack. I know average household income is not a great way to judge the dow, but in my eyes it is a good way to judge the overall wealth of the nation since it is the spending of the average household that drives our economy.