GDP sucks and the housing market is still in the doldrums.
Why not? Seems to me it is all relative.
If cash is losing value in the mattress, say, at 25% per year, all other factors equal, I'd gladly pay 5% per year TO the bank to hold that money.
I wonder how badly retirees living on the interest and dividends from the retirement plans will be hit.
No they aren't. People are pouring money into stocks because it's the only game in town. Banks and bonds pay < 1%, real estate is stagnant (unless you're Trump) so where does the average person put their 401k money?
My own view is that stocks are benefiting from a run to yield. Many blue chip stocks dividends are larger than long-term (10 to 30 year) T-Bond yields, and they have the added possibility of future appreciation.
However, if inflation picks up—and the FED want some inflation—and bond yields go up, that argument will be gone, and stocks will take a tumble.
There are no good ways out of this global mess. If the global monetary/banking system collapsed, us "little folk" will go through a transition, for sure. It's the global elites who will lose out....and I'm all for that.
Well, the 2nd quarter ends today. Do you want to bet the first GDP figure is +0.1% or higher? Two consecutive quarters with negative GDP would definitional a recession - and Obama and the Rats will own it.
We’re in a depression.
I think stocks are overvalued right now but then again I could be wrong.