Daily reminder that the stock market is not the economy. This US stock market being at highly inflated valuations is more a cause for concern than celebration.
It’s not resilience. It’s fake.Â
Do you really feel like the stock market is fair and functional when the top 1% own half the stock traded? With algorithms that move money faster than we can blink? With insider trading blatantly out in the open at the highest levels of the US government?Â
Trump will be at the helm of a stock market crash worse than the great depression. Because that’s the best way to funnel money back to his pocket and the financiers of his operation.Â
Not saying something different would happen under the dems, but I think the dems would at least be trying to help the average person through such a crisis a little bit more than the repubs.Â
I don’t know how closely US stock prices reflect the current geopolitical situations. But there are several developments that make doing business in the US much more attractive over anywhere else.
With several countries trying to upset the world order and US not vigorously defending it, doing international business has become costly. If you’re a business highly dependent on international trade, your supply chain and cost structure can easily be disrupted by wars, trade policy changes, collapsing financials due to poor governance, transportation disruptions, etc.
In comparison, US is a self-contained continent size fortress with energy, food, and resource self-sufficiency, and a huge consumption. If you’re able to cope with high labor cost and regulations, you have stability you won’t find anywhere else today.
I suspect US will do quite well in next decades, as the rest of the world suffers from turmoil and uncertainty. I don’t think high US stock prices is purely a bubble.
Real question here: I know timing the market is not something that is generally wise but if I took like 10K out of some investments and kept it as cash for a while is that a bad play? I had like a 35% return last year and if there is a bubble just waiting to pop I would be upset watching all of that go backwards
How much of this was from the magnificent seven? As I understand it quite a lot of the gains since 2020 have been from large tech companies.
Americans will have their minds blown to pieces when they see that their stock market can drop by 10% in 3 months.
A 20% drop in 3-6 months, that would be national emergency!
6 comments
Daily reminder that the stock market is not the economy. This US stock market being at highly inflated valuations is more a cause for concern than celebration.
It’s not resilience. It’s fake.Â
Do you really feel like the stock market is fair and functional when the top 1% own half the stock traded? With algorithms that move money faster than we can blink? With insider trading blatantly out in the open at the highest levels of the US government?Â
Trump will be at the helm of a stock market crash worse than the great depression. Because that’s the best way to funnel money back to his pocket and the financiers of his operation.Â
Not saying something different would happen under the dems, but I think the dems would at least be trying to help the average person through such a crisis a little bit more than the repubs.Â
I don’t know how closely US stock prices reflect the current geopolitical situations. But there are several developments that make doing business in the US much more attractive over anywhere else.
With several countries trying to upset the world order and US not vigorously defending it, doing international business has become costly. If you’re a business highly dependent on international trade, your supply chain and cost structure can easily be disrupted by wars, trade policy changes, collapsing financials due to poor governance, transportation disruptions, etc.
In comparison, US is a self-contained continent size fortress with energy, food, and resource self-sufficiency, and a huge consumption. If you’re able to cope with high labor cost and regulations, you have stability you won’t find anywhere else today.
I suspect US will do quite well in next decades, as the rest of the world suffers from turmoil and uncertainty. I don’t think high US stock prices is purely a bubble.
Real question here: I know timing the market is not something that is generally wise but if I took like 10K out of some investments and kept it as cash for a while is that a bad play? I had like a 35% return last year and if there is a bubble just waiting to pop I would be upset watching all of that go backwards
How much of this was from the magnificent seven? As I understand it quite a lot of the gains since 2020 have been from large tech companies.
Americans will have their minds blown to pieces when they see that their stock market can drop by 10% in 3 months.
A 20% drop in 3-6 months, that would be national emergency!
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