CRAZY MARKET!
(I'll try to find the source).
Stocks are the next best choice for most people. But the stock market has become absurdly overpriced. There are still undervalued gems, but they’re more and more difficult to find.
Coca Cola is a great example of how overpriced the market is; Coke’s earnings actually peaked in 2010, more than a decade ago. At that time, the company earned $2.53 per share and had $14 billion in long-term debt.
Its earnings have been in decline ever since. Last year Coca Cola earned $1.79 per share, a decline of 30% from its peak in 2010. And over the same period its long-term debt has nearly tripled to $40 billion.
Revenue is down, earnings are down, free cash flow is down, debt is up. Any rational person would look at this data and conclude that Coca Cola’s stock price should have been in the dumps since 2010.
But that’s not the case. Coke stock has more than doubled, and it’s not far off from its all-time high.
This makes absolutely no sense, yet it exemplifies the sorts of risks that stock market investors have to take today, simply because– as the saying goes– “There is no alternative.”
