The Investment Thread

UncleTrvlingJim said

A company's stock price in the short term has very little to do with profit margins. In the long term fundamentals win out, but in the short term, general sentiment has more to do with stock prices. Sentiment is negative now, and each bit of bad news makes people believe that things will turn bad, so even if a company is making a lot of profit (which they are right now), b/c peopel believe that the fed is going to over tighten and cause a recession, stock prices fall.

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I know that and sentiment is why I am currently making returns in a down market. Negative sentiment because we just crossed a $5 a gallon nation wide average on gas(and many more but that one stares us in the face daily). Plus after today we are now officially in a bear market.
I just find it interesting people want to place blame for the recession at the feet of corporate greed as some kind of scapegoat(and this does not mean some are not blameless). It's not better than people who blame presidents exclusively how the economy is performing. It takes a comedy of bad actors to make an economy tank(which I addressed in an earlier post).

You can't simply blame this on one single thing. But to try and omit one of those factors(or many) because it fits your own perceived biases is only going to hurt you in the long run.