Interesting.
Over a decade ago, the banks were up to their butts in securitized crap loans. Trade policy encouraged businesses to outsource and go offshore. Unemployment was heading upward.
None of those things are true now, fundamentals are far better. A re-balancing of trade with China will and is resulting in better fundamentals for the US - we won’t all just be marketing and fulfillment center workers.
So the real question for Wall Street is...what’s gonna crash? Real estate prices? Oil? In adjusted terms, all those things are not bad off now. The only thing that’s crashing is the Communist theft of US industries.
Guess that bothers them.
Stock market is quite inflated based on inflation adjusted historical data.
https://www.multpl.com/shiller-pe
The U.S. Gross Domestic Product (GDP) is the sum total of all business activity in the U.S. Our economy is incredibly complex, but our GDP grows or declines based on two simple factors: (1) population changes, and (2) productivity changes.
Our population continues to grow, but our productivity has probably been in steep decline for nearly two decades. This is the result of a growing base of retirees as well as an alarming increase in younger people who are simply unemployable.
There's a reason why interest rates have remained at or near historic lows for years, folks.
Guess that bothers them.
It bothers them a lot. Because when the unwashed masses make money slowly, the Davos crowd has a hard time accumulating political power and more wealth.
I highly recommend a book called Why We Want You to Be Rich co-authored in 2006 by Donald J. Trump and Robert Kiyosaki (of Rich Dad/Poor Dad fame).
A huge eye-opener in the book is just how much the Davos class rips off investors by taking up to 80% of their gains in fees, commissions and the like.
Real Estate is a mess right now. It’s creeping into the heartland too.