to the $7.1 trillionth power and then you will know why the market is heated (Mainly for retirements/pensions which is why younger generations are trying to economically troll the theft).
It goes up before it goes down.
Good question.
I’ve been arguing for years that the debt/deficit is NOT an important factor for many reasons.
1) Until just recently, the prices of commodities were stable. No inflation.
2) Even now, energy is only going up because of the sudden cold snap and demand and at the same time Biteme’s policies cutting supply. Are we on the cusp of new inflation? Maybe but I doubt it. I have a piece coming up in www.uncoverdc.com next week called “Is the Great Inflation Upon Us?”
3) Biggest issue: recent economists have studied GDP/GNP. What they are finding is that they have screwed up big time, and that they have UNDERestimated GDP for a century. The biggest failure was to value QUALITY of improvements as well as simply price (take the light bulb over kerosene—it was measured simply by price, but when you looked at lumins, it was VASTLY better. Then there was life span of a bulb vs a similar amount of kerosene. Then there was the reduction in fire hazard. And so on. This has led one economist, Gordon, to substantially re-estimate earlier ec growth (1880-1950). However, I think NO ONE has come close to properly valuing the impact of the computer/computing tech, which means that value/productivity has in real terms far exceeded what has been recorded. That would mean that we have been in DEFLATION for 30 years or more; and that as Steve Bannon says, China exports deflation in low wage labor, so that has only added to it.
Conclusion: It’s possible the stock market is STILL playing “catch up” to where we should have been years ago regardless of gubment policies.
Don't leave home without them....
Trump predicted a surge. It’s happening and the market is showing that.
MSM won’t provide details as they want the illusion of Biden / Harris = growth
I’ve seen this before. If you remember way back when Obama won election the market got scared and lost several hundred points the day after his election. Then when he was inaugurated the dow lost several hundred points two days in a row. The market at that time was scared to death of dimocrats, Obama, and socialism, and started on a downward spiral over the next couple of years.
All this was in response to Obama and dimocrat policies. Then it bottomed out at 7,200 in March 09. From there it just went up and behaved irrationally. It was no longer scared of Obama’s policies but loved them. Each time Obama did something that should have scared the hell out of the market it just kept going up.
Fast forward to Nov 2020. I honestly thought the market would tank if the dimocrats won the house, the senate, and the presidency. After all, the market, under Trump, behaved as it did before Obama and it seemed things were back to normal. BUT the markets skyrocketed with the news that the dimocrats, with all of their freedom and economy killing policies, were in full control.
I think the Obama admin figured a way to manipulate the market so it would rise and now the biden admin is doing the same. I think it will continue to go up due to whatever it is that the dimocrats are doing behind the scenes.
Bond obliteration continues.....
I think we are at or very near how much bonds can be destroyed before something breaks.
Not today.