Posted on 08/03/2020 8:20:53 AM PDT by Hojczyk
Opps! I need to proofread. That was supposed to say, Biden wants to double the capital gains tax…
The stock market is emotionally driven, also, people don’t know where else to put their money right now, so it’s the stock market by default.
If Krugman got one, surely you deserve one, too!!!!!!!!........
Then the riots shift into high gear. Be prepared folks.
If Trump doesn’t win, we’ll be asking why the stock market is so low. Bottom Line, tons of spending (stimulus) and low interest rates and mostly decent rebound from the shut down.
1. Stock indexes are high because they are weighted by companies that continue to make money in spite of the lock down. This is especially true for the NASDAQ.
2. Interest rates are low...money market is below 0.5%. 30 year bond yield is 1.246%. There are many companies that continue to pay dividends around 3-4%.
3. Stimulus...The Fed is "printing money" aka quantitative easing.
4. $4 Trillion stimulus package provided by the federal government.
Bonds don't yield much, and can only go up in price if interest rates fall further, even below zero. So some people feel "TINA," as in "There is no alternative" to stocks.
Because CALPERS needs it to be high.
Viagra?
“The stock market is high because money is cheap.”
Bingo - a more accurate assessment of how the market is doing would be based on how much gold the total value of all stocks could purchase now as opposed to past years.
Currently the US dollar is worth about 1/2000th of an ounce of gold. I don’t think things look so rosy from that perspective.
Any investor with half a brain wants Trump to win.
Trump’s recipe is for economic growth and greater individual wealth. The Loser Left’s recipe is for total disaster and utter poverty.
No brainer.
Add to that, muni bonds from blue municipalities may be at risk of defaulting.
you do realize that the Fed can print money..but they cant print land!
Bingo
High tech earnings are great.
Nasdaq is 10,897 currently. High tech is where the money is now. Apple is worth more than any other corporation in the world.
Apple could buy GM, Ford, Toyota, Honda and have money left over.
The problem with real estate at least in a lot of places right now is that our government is cancelling rent, forbidding eviction, keeping property taxes regardless. They are promoting open terrorism in many cities under color of law. So it’s a very shaky time to do real estate investment from that perspective.
Your land is rather worthless if you can’t sell or rent it reliably.
Good one
Because the modern stock market is ruled by the bigger fool theory. So long as people thing somebody will buy it from them for more they’ll buy, no matter the price, no matter how the business is actually doing, no matter the essentials. And of course as long as lots of people are thinking that way it remains an OK way to think. Just don’t be the last guy standing with that thinking.
Wall Street needs the suckers, however, it’s more of a summation of the public’s opinion and anticipation of safety and security in American commerce.
No one else on the planet has America’s infrastructure. It is the base of all conservatives, capitalists, their inventions and innovations.
We see it in another format, who is most prepared to solve the covid problem?
America.
Damn Chinese know it, they were trying to solve it the old fashioned way, through theft. That’s why they were attempting to hack the researchers computers.
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