Would that be the Treasury now taking over the securities managed by the fed as recently discussed on these threads?
???? I pinged my husband. He’s the financial part of our duo. Dustin Nemos who is a very smart kid says that Trump is the new fed chair. I hope that is true.
Of course it’s a stock market bubble. That has to be the worst-kept secret on Wall Street.
All those $Trillions have to go somewhere, and there is still no inflation. Quite the contrary, the Fed and knowledgable economists are still worried about deflation ... the bugaboo that characterized the Great Depression.
With interest rates so close to 0% (for the big banks), there is little attraction to bonds, and anywhere but the U.S. is even worse.
Moreover, it makes perfect sense for corporations to borrow money at these historically low rates and use it to buy back their own stock.
The CHALLENGE for the Trump economic team is to get that money flowing INTO THE ACTUAL ECONOMY, and not just sitting in asset bubbles.
To this end, the BEST WAY is probably through middle-class wages ... people who wish to buy things (and go places); or, SMALL BUSINESSES who will actually invest and expand rather than engaging strictly in “Financial engineering” like many large corporations.
All that being said, if a person believes the Fed is going to be inflating the stock market for a few years, and one can afford some risk exposure in return for the possibility of significant gains, then I think the stock market is the place to be.
Just realize the Fed will eventually remove the punchbowl ... but I think they have committed that it won’t be in 2020.