Population and Economy and Stock

Discussion in 'Economics' started by NoMoreOptions, Apr 16, 2004.

  1. Since I am going to be a chef, I am considering to start investing instead of trading. So let me ask this.

    Intuitively, as long as the human population continues to grow, the economy has to grow. Right?

    But what I don't understand is that when economy grows, why the stocks continue to rise and split and rise provided the companies exist. I know EPS, which are mostly less than 5% or lower. That means it needs 20+ year earnings to pay the shares at the present value. This scares me. I just don't get the idea of investment. Help appreciated.
     
  2. ====================

    We could easily agree a medium charbroiled steak is pink in the middle;
    however never have been really called to be a CPA & try to fine tune fundamentals.

    However one may want to cook up a investing plan;
    with mutual funds or my favorites

    trend research

    & occasional stock & derivative trade/invest.

    :cool:
     
  3. vak

    vak

    "Intuitively, as long as the human population continues to grow, the economy has to grow. Right?"

    >>> nop' there is has been and will allways be cases when pop growths and economy sinks

    actually if anything the oposite may hold better