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A comment on Yield curve is blaring loudest recession warning since 2007. Parent comment

Re:Yield curve is blaring loudest recession warning since 2007 by trias on Monday August 05, 2019 @02:05PM (#20616560)
Well in the case of stacks, the expected dividend (price of the eggs) also dropped by half. So yes, you really are poorer when you bought those expensive hens compared to someone who buys them at the reduced price.
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Re:Yield curve is blaring loudest recession warning since 2007 by Godel_unicode on Monday August 05, 2019 @04:07PM (#20618325)
That's not how dividends work. Dividends are related to how much profit/cash the company has, and how many shares are outstanding. The price of an individual share doesn't effect that, only issuance of new shares and changes in cash flow.
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Re:Yield curve is blaring loudest recession warning since 2007 by ericd on Monday August 05, 2019 @04:33PM (#20618615)
Shares frequently crash in conjunction with economic pullbacks, which mean lower revenue/earnings for companies, which means less spending by those companies, which means lower revenue/earnings for other companies, and layoffs, which means lower earnings for workers, which means less spending, etc etc.
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Re:Yield curve is blaring loudest recession warning since 2007 by Godel_unicode on Monday August 05, 2019 @05:00PM (#20618889)
Shares of individual companies also frequently crash for reasons totally unrelated to economic pullbacks, and thus none of those things are guaranteed to happen simply because a share now costs less.
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Re:Yield curve is blaring loudest recession warning since 2007 by ericd on Monday August 05, 2019 @05:21PM (#20619121)
Sure, but I assume we're generally talking about index/portfolio investing here when we talk about stocks in general?
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