i'm buying stocks today..

Hey 300_mercer, what fraction of your net worth did you have in the market? How about you, ss400k?

Also how big is your penis and how often do you use it? How hot is your wife And what percentage of your income do you spend on her for permission to use your penis?

i put in about 17% of new funds into VTI with the opening statement, and threw some more chips with dips..

i use my penis often .. Grindr Midtown density = why i don't leave the island.

unmatched convenience options. who drives for butt these days, tho jersey meatheads do make me pre-c.

What does "17% of new funds" mean in terms of net worth? Like 4%? I'm curious what equity NY RE bulls are committing to RE vs. stocks vs. bonds vs. cash.

nada, counting every thing on a post-tax basis (401K, unvested stock etc), 60-70% stocks before the recent sale. Rest was cash/real estate - no bonds as I think with the economy recovering upside is limited.

The market is not sustainable..
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Profits = Investment - Household Saving - Government Savings - Foreign Savings + Dividends

Notably, the ratio of corporate profits to GDP is presently nearly 70% above its historical norm

the primary way to boost corporate profits to abnormally high - but unsustainable - levels is for the government and the household sector to both spend beyond their means at the same time.

http://www.hussmanfunds.com/wmc/wmc120402.htm

Hmm, Riversider & columbiacounty vs. inonada

rs, Stocks can trade far away from fair value in either direction. Stock prices are mostly based only on next one year view. You and I may disagree whether that should be the case but that is how it typically is. If the rates do not go up much (10 y more than 75bps), US corporates will keep on making more money. If the economy is a bit stronger, there will some labor cost pressure which will be offset by growth. That is the reason I am still a bit bullish on stocks. I feel there will be opportunity in 2012 to buy a good 5%+ lower than current levels but we are not seeing SPX 1200 any time soon barring a serious Iran related issue.

Michael Kalecki's equation is interesting. If Savings go up or government deficits decrease corporate profits go down.

What is "fair value"?

Mercer Trees can't grow to the sky and Profits are not a leading but a lagging indicator. What do you see driving a further increase in profits now that Europe, Japan and China are slowing?

I think Mercer is saying stocks are cheap relative to bonds, which assumes bonds stay where they are. Kind of like picking the least ugly of Cinderella's step-sisters and thinking you got a bargain, not realize Cinderella was around the corner.

rs. Not saying either. Just saying only the incremental news matters for stock prices, which has been positive for US stocks. People look very smart making these long term economic predictions and how stocks in the short-run should trade based on that. I am neither perma-bull or perma-bear on stocks. From my earlier post, you can clearly see that I do not like bonds and do not like stocks as much as I did earlier this year or late last year.

Well clearly it's been a cyclical bull market. I lost my enthusiasm for stocks back when the Dow crossed 10,000(don't recall the s&p value)

Thanks Mercer. So now down to about a third stocks, a third RE, a third cash?

Unless you area getting ready for an opportunity you shouldn't hold so much cash i think.
Buy short term treasuries instead, or inflation will "eat" your cash.