Interesting observation from a trader who makes money as a shareholder... Are you not "everyone else"? Too much money has been flooding the economy and much of it went into the market and set it on fire. Conspicuous consumption set inflation on fire and now the feds are cutting the feeding tube. Let's not start whining that we're on the verge of starvation, losing the truck, the house and the wife...
I don't brandmark shareholders or the desire to grow one's wealth. What I did point out is the outrageous get rich quick attitude by most. I don't need to get rich quick, in fact I generated around 20% year in year out without ever having gotten the impression to take on risk that was over my head or irresponsible enough to have to socialize any potential losses. I have as personal conviction not taken on a single penny in debt ever in my life, nor gone belly up, nor have I ever taken a single dollars in tax deductions or collected federal or provincial money that I was lawfully entitled to. Just because I did not need anyone else's handouts. I pay my fair share of taxes and that I consider my contribution to society, locally, and provincially. That is how I justify being a responsible member of society. I strongly advocate for a complete rewrite of the taxation system with zero loopholes, deductions, write-offs or the like. One progressive tax formula that taxes any and every change in personal wealth, whether already paid out or cash or receivable or otherwise. I also postulate a complete rewrite of the election system, zero allowance for any sort of contributions, donations, or fund raising. The only matter that decides who represents us is the common votes. A corrupt system breeds corrupt and immoral people and they breed corrupt leaders. It's a devil's circle. The problem with society is as I stated in the previous post. A complete downfall of moral and ethical values. A disrespect for life. All to maximize selfish pleasure and immediate gratification.
It's already been proven a bunch of companies (Tyson etc) exploited the fog that surrounds "inflation" to earn record profits. So no it's not just the money printing that is causing these absurd prices.
Your observation doesn't negate mine. What was once legitimate supply chain issues quickly became an excuse to raise prices on everything because demand exceeded supply.
The problem I have with your view is its puritanical foundation, a hyper conservative expectation of civil society that has never existed other than in the minds of religious fanatics. But I do agree that America is going to shits; It's the reason I left. Life is too short to waste it on idealistic pursuits. I try my best to be positive and considerate with those around me. I don't always succeed but I have good intentions.
You need to do better research P/Es aren't high at all right now. If it's a concern to you buy the parts of the market that have great value. Or recognize the range trades and play them in whatever direction you want. The economy isn't nearly as weak as some have been saying and markets aren't going to crash this year. Average length of a bear market on the SPX is 388 days. When did this one start ?
You probably already realize this but for any newer traders it's important to remember, unlike most major indexes which are free float market cap weighted, for historical reasons the Dow is price weighted so stocks with a higher price will have a proportionally higher impact on the "average". The original idea when Charles Dow created the index in 1896 was to give investors a simple way to see the overall price of stocks in the market. Originally the Dow was made up of 12 companies and the index price was the price of the companies added together divided by 12. Later on the divisor was changed from 12 to account for stock splits, reverse splits, and the inclusion of additional companies in the index. Presently there are 30 companies in the Dow and the divisor is 0.1517 so a $1 move in any Dow stock would equal a roughly 6.8 point move in the index. In this light it's easy to see how a stock like lowest priced INTC at $28 or mid-priced TRV at $193 would have a significantly larger impact on the DJIA over highest priced UNH at $490.
It exists in Japan TODAY, January 8,2023. It is a feasible and realistic goal. Japanese companies in Japan did not raise prices to the degree many western corporations have despite their cost base having gone up. Shareholders yielded less than before but everyone made sacrifices for the greater good. That led to extremely low inflation numbers with the rest wondering how that was possible despite Japan being a huge net importer of natural resources. It requires group think and visibility of the big picture, something many young immigrant rich countries like the US or Canada don't have. Here it's "everyone on and for their own", a silo mentality all in the name of freedom and choices. Ironically, all that selfishness further constrained our choices and freedom. By the way, most humans today don't have good intentions, they have selfish intentions and if others get hurt along the way then they are ok with that. Such mindset did not exist 30 years ago, at least not in the majority of people.
It's interesting to look back and reflect at times. 30 years ago, one would have been upset after seeing some senseless murder on the news. These days, I doubt it even registers on anyone's moral radar. We've all just become helpless pawns.
The more we must cheer and celebrate the few heroes that dare to speak up and stem the tide. I don't see a way around either full scale war or a revolution. Those who grip onto power for their nefarious gains won't relinquish the same peacefully.