It is interesting to watch investor and advisors go through the market cycles and gyrations. Often we get derailed by feelings – mistaking them as “facts”. It is important to notice the difference between the two and how we are influenced by feelings versus facts. Let’s take a look:
- The economy (GDP) is growing at a current rate of about 2.5%.
- The long term average growth rate of our GDP is 2.7%
- Corporate revenues (sales) are up 11% (Year over year – YOY)
- Corporate profits are up 17% YOY
- There is $10.8 Trillion in money market funds as of 09.30.2011
- Unemployment is at 9.1%
- Under-employment is at 20%
- 265 Companies have increased their dividends (vs. 191 increases last year), 5 have decreased dividends (vs. decreases 3 last year)
- Companies are buying a record amount of their own stock back – indicating they have confidence in themselves about their future.