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To: catnipman

one counterargument might be that there is no alternative safe harbor to the us stock market. europe comes in at a somewhat distant second. the china market is simply too corrupt to compete effectively. so a lot of money supply sloshing around in the world ends up in the us stock market by default. the actual stock prices are in part a measure of some form of international investment money velocity as much as anything else. biden might depress the velocity component but it will take him a while to degrade the us open market to the level of europe (more so to the level of china).

(accurate and fair??)


43 posted on 10/07/2020 4:07:18 PM PDT by SteveH
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To: SteveH

“(accurate and fair??)”

absolutely: the other MAJOR market factor is the amount of liquidity sloshing around that is unable or unwilling to be invested in the growth of physical production assets, in which case it seeks paper assets like capital stock, bonds, and/or dividend-producing paper, thereby putting upwards pressure on said paper asset prices ... that’s why so many claim that the REAL driving factor in market prices is the amount of said “excess” cash, which results from massive government deficit spending (bonds bought by the Fed) and low Federal reserve lending rates to banks and such ...


47 posted on 10/07/2020 6:18:40 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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