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Stock Market Crash And Expectations Of American Households
Buy-and-hold investors are bound for trouble; you can’t rely on rising stocks and bonds to deliver positive returns over the next 10 to 15 years. Until four trading days ago, the market traded in a narrow range with an upward bias: (1) The daily volumes (second panel) approximated their daily norms while (2) the daily price changes (top panel) usually showed gains or losses that were about half of their norms. Warren Buffett ‘s favorite indicator is the Market Cap to GDP Ratio, which, as the name implies, compares the total price of all publicly traded companies to gross domestic…