Posted on 01/20/2024 4:28:29 AM PST by FarCenter
The mainstream media is reporting "This record-breaking market just keeps going higher and higher. Here’s why"
https://www.cnbc.com/2024/01/19/this-record-breaking-market-just-keeps-going-higher-and-higher-heres-why.html
A panel discussion on MSNBC was discussion why Biden isn't getting the credit for the great economy, with inflation coming down and the stock market making new highs.
The reason is that the stock market is actually about 9% lower than it was in December 2021 when adjusted for inflation. According to the Bureau of Labor Statistics inflation calculator, a December 2021 dollar is worth 91 cents today.
https://www.bls.gov/data/inflation_calculator.htm
And what goes for the stock market also goes for wages, Social Security payments, etc.
An income of $50,000 December 2021 is worth only $45,445 today.
From the beginning of the Biden Administration it is even worse. An income of $50,000 in January 2021 is worth only $42,638.21 today.
There isn’t a whole lot of good news these days so I will take this one.
Inflation is the silent income tax. No forms to be filed, no checks to be written, no exemptions, no deductions, no refunds. An invisible hand removes your income and your wealth.
It isn’t even just an income tax. As you point out, it removes wealth you already have.
The really cool part is that the government is rewarded, in the short-term, for mismanaging the dollar!
It is Adam Smith’s real “invisible hand”.
Billionaires pushing it up is all.
Peasants not so much...
Nvadia Facebook Microsoft google and apple is keeping it up
Money has no place else to go, except for CD’s and T-Bills. That helps keep the market from imploding.
It has been reported the largest share -- circa 90% -- of the stock market players are the very rich and hedge funds. It would not surprise me that the "push" of headlines is an attempt to get the "peasants" into buying stocks, such that others can offload them. A coming reevaluation in time would catch up many. Inflation is indeed a tax, and the "interest" being paid on the so-called public debt is devaluing as we watch these days go by. Don't buy the frenzy, and don't buy the panic and fear either. And -- to our view -- don't consign your money/precious metals to be held in someone else's wallet.
I know economy
Let me tell you this is fake news
Although the nasdaq and Dow jones are close to all time high , my portfolio is still -8.5% down from all time high from 2 years ago
I’m a heavy dividends guy and yet I am still -8.5% down
I hope in the next 2 years to be above my all time high once they start cutting rates.
Inflation and prices have skyrocketed and there is no way these prices are coming back down
Cherry 🍒🍒🍒🍒🍒 picker in action?
Yes, the stock market has ups and downs. But over time it is far better than parking it in low yielding Treasury Bonds or Municipal Bond. The inflation rate is well over 15%, may be closer to 20%.
Result, shrinking economy and higher Fed Res interest rates. They are having a very hard time selling to the public.
Gold is not the solution, but there must be some discipline in monetary policy. What we have done for a very long time, no longer works. Why? Insane Fed Gov policy. And many criminal scalpers inside the Fed Gov.
Yes, the stock market is at record highs and so is the National Debt!!!!!!
AND. The Globalists want to use that to steal all liquid assets by reducing it's value to the point foreclosure on mortgaged property winds up in Fed Gov ownership. Confiscation of all assets. It will be complete if they get CBDC.
Klaus: “In 10 years wzees will all own nothing and be happy.”
Eat them “bugs” Klaus.
The stock Market has always been the place to go when trying to beat inflation. Mathematically, if the dollar gets cut in half, the price of a share of IBM doubles and so does the price of bread. So big money keeps buying into the market when big money thinks there is more inflation coming. Of course when you have to sell your IBM to buy the bread it all comes unglued.
Typically inflation moves stock prices up, Excessive, rapid and long term inflation can ruin the economy. The big money will leave the stock market causing a crash.
The only direct reason a stock price goes up or down is if there are more buyers or sellers of the stock.
I went to KFC last night. It cost me $3 more.
(Typically inflation moves stock prices up, Excessive, rapid and long term inflation can ruin the economy. The big money will leave the stock market causing a crash.)
Pretty much
The reason The Stock Market is up is Trump is ahead in the polls and looks like Trump will win in November.
I expect that is a forlorn hope.
There might be a sub-prime rate made available to certain government organizations or other "friends of the Democrats". They will call that a "rate cut". That might even happen just before the "election" of 2024. But you are not going to be eligible for that rate.
All smoke and mirrors. Interest rates on loans to the general public are going to remain high and eventually go higher. Interest rates on savings will remain close to zero, or even go negative. The stock market? It will probably go up - except for the stocks I pick ;)
Those trillions in new government-printed dollars have to go somewhere.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.