Fixing Wall Street: Debt vs. Dividends

Jay Owen Advisors' Forum

 

P E R S P E C T I V E S:
Fixing Wall Street: Debt vs. Dividends

By Rinaldo S. Brutoco

 

The following Perspectives column was published in the October 29, 2020 (online and printed) edition of the Montecito Journal as well as on the World Business Academy website.

We frequently hear on public media that “the stock market does not reflect the ‘real’ economy.” That is absolutely correct. The question we should ask ourselves is why doesn’t Wall Street reflect the real economy? Why is Wall Street today at all-time highs when we are now in the worst recession since the Great Depression, sitting literally on the edge of a new depression here in the USA and around the world. There are over 30 million Americans out of work, and the market is “up”! The pandemic is ravaging our society and destroying our economy, yet the stock market maintains its artificially lofty price points! Oh, and in case you are wondering whether the current “asset bubble” will burst with an attendant stock market bust, it will!
Continue reading…