Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SeekAndFind

“Fed taper talk”

That’s it.

The markets are making new highs on gov manipulation. It’s sick, destroying our currency to keep the markets making new highs. History won’t judge well.


5 posted on 09/20/2021 9:14:09 AM PDT by Vision (Elections are one day. Reject "Chicago" vote harvesting. Election Reform Now. Obama is an evildoer.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Vision

The Fed is only part of the reason, we have a structural issue with how the S&P is calculated using a Market Capitalization formula.

A lot of new money comes in via 401K contributions, etc., and a lot of that is going to Index funds, mostly the S&P 500 since it is always included in retirement plan choices. Apple, Alphabet, Amazon, Microsoft and a few others are about 20% of the Index and money automatically gets allocated to those stocks via the Index providers, continuing to push up the most ludicrous valuations.

Those four stocks ALONE are over $7 TRILLION in Market Cap. The Fed mostly owns fixed income and mortgages so they have less influence on the stock market.


8 posted on 09/20/2021 10:16:45 AM PDT by LRoggy (Peter's Son's Business )
[ Post Reply | Private Reply | To 5 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson