Amazing how they’ve managed to make the stock market so detached from reality.
I majored in finance and most everything we learned in the text books are a waste of time. The formulas we used to arrive at things like intrinsic value are pretty meaningless now.
There may be a day when we go back to fundamentals. If so, reality will be a hard one.
What is happening very simply, is that America is giving China a huge amount of money, but China doesn’t allow for investment except by Chinese.
So a lot of global money is investing in America.
That is good short-term.
Longer term however, America needs to build, to grow, and to stop giving China the future.
Rebuild AMERICA.
Biggest reasons? Huge potential upside in housing (still 50% upside to “normal”), significant slack in the labor market (NFP growth just started to accelerate), capacity utilization rates still relatively low, finally S&P valuation not overvalued relative to corporate profits.
Stocks will be worth lots of dollars.
The dollars themselves will be worthless.
There are ways to preserve your wealth, I use one of the best as my screen name here.