General Discussion
In reply to the discussion: There's something seriously wrong with the stock market [View all]ProfessorGAC
(65,005 posts)...whether his analysis included leverage increases altered D/E ratios by 12% relative over 3.5 years.
Truth is the market was inflated by nearly 25%.
The current valuation of DJIA, S&P, and the Russell 2000 is about where it should be, BEFORE unemployment shot through the roof.
The upcoming impact of reduced consumption dollars & product segment inflation is not going to look like a recovery.
We've got 1 in 8 people operating on 40-60% of normal cash flow. It's literally impossible for less available money to not recess the economy, given it's 70% consumer spending. Literally impossible.
Your friend might have gotten lucky, but if he thinks the markets have rationally reacted to true macroeconomic conditions for the last 42 months, you should advise him to set aside a bunch of that "doubled" income.
He's not day trading. He's gambling.