Money taken out of the market will go where, real estate? Commodities? Mattresses?
China.
And so will taxes. But pensions will be paid in fewer dollars. Problems are being solved without anyone being the wiser.
You didn't mention precious metals but you didn't have to. In comparing 5-year charts for Gold and the DOW, stocks win.
Money will not be taken out of the stock market, some will leave the bond market which is for suckers. Stocks around the world will likely keep their inflated value while other things like bonds will be locked into current values. Commodities will be limited by word GNP. Some other things will go up, like stuff for the very wealthy.
Keep you expenses low and keep your stocks.
“...Money taken out of the market will go where, real estate? Commodities? Mattresses?...”
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I have always been pretty dense when it comes to economics,
but I have always remembered two things my daddy taught me
60 years ago when I was a young lad.
As a hobby, I would go through all of the coins I came across
looking for anything unusual, old, and potentially rare.
I would save them, collect them, and trade then at coin shows.
Your post reminded me of those days and the lessons I learned.
1-A thing is worth only what someone else is willing to pay you for it
(it’s true value or fair market value).
I can still remember telling my dad that my coin book said
a dime I found was worth ten dollars, and he said,
“Worth ten dollars to who? To me, it is only worth a dime.”
2-All money has to “sit” somewhere.
If I bought a silver coin,
it was only worth what someone else was wiling to pay me for it.
If I saved up $100 and the bank would pay me 2% interest,
then my $100 was worth $102 to the the bank.
Those two simple lessons are very inter-related
and they have stuck with me for a long time,
ans sixty years later, they still hold true.
If you own a share of stock,
it does not matter what you paid for it,
the only thing that matters is what someone else will pay YOU for it.
If your money, or my money, or anyone else’s money
does not sit in the stock market, then where does it sit?
Stocks?
Bonds?
Gold?
Silver?
Cocoa futures?
Real estate?
Certificate of deposit?
Cash?
.22 long rifle cartridges?
Toilet paper?
I try to put my money where “someone else” thinks it has value.
The market can drop to zero without a dime being taken out of it. Well, that's a bit extreme, but there's no money to be taken out until there's a buyer.