As we all know, the stock market is at an all time high. That is despite the fact that earnings for the US corporationshave been flat for a few quarters. Of course, it is doubtful that those earnings as whole will not be higher a decade or two from now. But in the day to day noise that many ordinary investors operate in, this sounds like an unbearably long period of time ( it shouldn't be that way).
Many investors have been distrustful about the stock market, after a relentless rise in equities over the past 7 - 8 years. Some have sold out large amounts of stock, and are waiting on the sidelines with cash. Others have been building up cash, and are waiting for an opportunity to buy shares at a lower price. But valuations on quality assets are at the high range, and have remained their for quite some time, making that group impatient. A third group has been putting money to work every month, but is likely having a harder time finding attractively valued companies.
I understand the frustration of all groups. After all, high stock prices in relation to earnings are great for those who are looking to sell stock. However, they are not good for savers like you and me, who happen to be able to put money to work every month. While it is great to see my net worth grow so much over time, I do not like the fact that I am priced out of some of the greatest dividend paying blue chips today.