Here at US-Issues.com, we deal with “Political Issues of Economic Importance.” Most Americans own stocks, either directly or through some kind of retirement plan. For them, whether stocks will be continuing to go up or will start to head down is of exceptional importance. The fact that market ups and downs are influenced greatly by government policy also makes this a political issue. Please enjoy this piece from Adam Hamilton.
Guest Post by Adam Hamilton
The prevailing valuations in the lofty US stock markets are increasingly becoming a bone of contention. Wall Street calmly asserts stocks are fairly valued or even cheap, since it has a huge vested interest in keeping people fully-invested. But a growing chorus of dissenters is disputing that idyllic notion, warning that stock valuations are very high and portend great downside risk. Indeed, topping valuations abound.
Since investing is all about buying low and selling high, the price paid for any investment is everything. Buy good companies at cheap prices, and you’ll multiply your wealth over time. But buying those very same good companies at expensive prices radically stunts future gains. While cheap investments have great potential to