Dear Corporate America,
I have a little puzzle for you; sort of a Zen koan. I see you making fabulous profits by moving your facilities to low-wage nations like China, Mexico, and India. I see Caterpillar selling lots of tractors to China to build those facilities. I see General Electric selling lots of locomotives to Mexico to haul automobiles up to the USA. Etcetera.
So, as you bask in the glory of your fabulous global free-trade utopia, maybe you can explain to me why your stock index topped out 10 years ago (click chart to enlarge):
What’s the problem?
Continue reading with Part 2 here.
Good question. Maybe no money to buy their products since there are no local jobs?
possibly the index was overpriced 10 years ago,
CAT looks higher than 10 years ago.
i haven’t checked GE.
index included some tech wrecked companies from a decade ago i presume…i’m sure we can think of one or two that aren’t around or have seen their share prices trounced…
in other news, i initiated a position in VXX and GLW, a matched trade but sold a cov call on each, thinking of adding next week if both decline from my purchase price…last time i messed with VXX t’was about double the current level…
happy weekend, happy trading…
Looks more like the effects of fiat currency coupled with leverage gone wild. Reality has been distorted for so long it just seemed normal. Time for a reset in imho. I enjoy your thoughts, thanks for blogging.