'Good news' shock could kill the five-year-old bull market

[riverbendviewgal]

This why I hate Wall street and the stock markets. I took my money out of them long ago..... Now my savings are in Cdn RRSPs.. and a regular bank savings account. I will not feed these monsters or take their blood money. No wonder the GOP wants no growth, no higher minimum wage nor do they want jobs for the people

The big risk for equity in this scenario is that a spur to growth from any corporate switch to capex spending, recruitment and higher wages away from share buybacks would not only lift bond yields and cut the equity risk premium, but it could also potentially squeeze margins and bottom lines.


If you see wage growth come back, that could be one risk to markets," said Stephen Cohen, chief investment strategist for BlackRock International Fixed Income and iShares EMEA.

Good news is bad news indeed.


[link:http://www.reuters.com/article/2014/08/20/us-investment-idUSKBN0GK0IW20140820|

[w4rma]

1. Democrats are going to have to come to terms with the fact that the stock market will drop

if wages raise. Just expect it and handle it. The stock market incentivizes lower wages, stolen pensions and the transfer of money out of the country and to oligarchs.

[riverbendviewgal]

2. Just remember a lot of money does not even get transferred out of the country

it goes into hiding places in Delaware, Nevada and Wyoming.

Sickening that the Wall street guys make money off of bad times and war making. The head of America is screwed on backward.

[Warpy]

3. What the moneygrubbing assholes are too nearsighted to see

is that while stock prices overall will stagnate, the return on those investments will start to go up as business improves at all levels.

Investors are going to make their money. Instead of making it on hyperinflating stock prices, it will be on earnings dividends.