High Stock Prices Fueled by “Easy” Money

Going up!

The general description of shares on the stock market at the moment can be described as “expensive” according to many observers.

A report in Yahoo Finance stated that “One reason that folks are paying up for richly priced stocks is that money – for many – is not much of an object right now.’’

The report added that American companies have added about $700 billion in debt so far in 2015, and repurchases of stock are on their way to going beyond a value of $600 billion.
Stocks for US companies are high-priced. The median stock carries a higher valuation than almost all of the time in the last 40 years, Yahoo stated. The largest 100 companies in the world today are worth an enormous $16.24 trillion. That amount is close to double what those companies were valued at immediately following the recent financial crisis.

According to PwC, Apple Inc. is the most valuable business in the world, with a market capitalization of $725 billion, which conducted a study in March. Since 2009 the maker of the iPhone and many other popular consumer electronic products has increased its market value by 671%. Only 6 years ago Apple was ranked the world’s 33rd largest company and worth about $94 billion.

The second largest company in the world is Google, with a valuation of $375 billion, more than double its worth in 2009 of $110 billion. Six years ago it ranked in 22nd place.

Jonathon Bowes

About Jonathon Bowes

Jonathan Bowes started his career in banking. After a few years, he took courses in business and finance and worked his way up the corporate ladder. Today, while writing part-time for Business District, Bowes assists talented people to find jobs in the field of economics. Contact Bowes at Jonathon[at]businessdistrict.com