Why is the S&P at the highest point in the entirety of American history ?
(media.patriots.win)
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We print a lot of money.
What’s your point sanctii ?
When you print trillions of dollars you are artificially inflating the economy. Artificially suppressing interest rates additionally drive up the stock market.
I love Trump and think he saved the country but I’m a small government fiscal conservative and our spending kills me. Wish we could cut our government size to a third.
Sorry sanctii reply didnt send through. Of course you’re right in terms of ‘printing based inflation’ but how does trump ordering the printing of money different from Obama, Bush or the men before him? And yes I know trump plans to print more money than ever in 2021 but I don’t think that’s necessarily a bad thing under trumps leadership it seems all financial sectors are better off then what we would have initially expected. He really does go above and beyond.
I promise I disliked it more when they did it. At least Trump seems to be using the money to help people, unlike Obama who had soylandra and all those other scandals.
The government sending checks to the people just doesnt sit right with me, but thats as much the Senate (which I dont like) as it is Trump. I also dont think the gov't has the authority to tell any business to shut down. I get it though, its great for my 401k, but I think we are moving towards MMT and we are screwed once we do. We cant just keep printing money. Some debt is okay, but there is no reason we couldnt have a balanced budget. Its just once these programs get in place they just dont every go away and keep growing and growing and taking more and more control of our lives.
Yes my brother it’s differs in the sense of the use of the money but how does trumps printing have a greater effect on the S&P (USA stock prices in general) ? I am not aware of soylandra could you enlighten me ? Yes welfare is not a productive or ‘good’ practice but I can understand the stimulus being beneficial for the general USA pop. It depends on the state legislature generally which is disgusting when you have majority D mayors controlling the rulings locally. Your 401k ( at least any non-government investment) will be but pittance if joe steals this. MMT please explain fren. Of course and that’s why trump is starting to balance the budget at least long term I believe. I agree fren the less regulation the greater the opportunity.
So a lot to unpack here. I feel I explained why printing money benefits the economy and therefore the stock market earlier. At least in the short term.
Here is the wiki on Soylandra. Essentially Obama gave them a ton of money and it was all a scam
I agree on Joe being the destruction of America. Not really even debatable at this point. This is it for America.
MMT is Modern Money Theory. In simplistic terms it says that a state can print as much money as it wants, therefore it should not worry about how much it spends or debt, because it can always print more. This will not cause inflation because magic. Therefore we should have free college, free healthcare, UBI and anything else you can think of and there will be no negative ramifications because magic. It is insane but it is where leftists are taking us.
Here is a pretty good video, that is 10 years old but still applicable. It explains Quantitative Easing.
Don't machines run the stock market as well these days?
Yes and no, algorithms developed mainly by quants are a large part of institutional investing, but for example Warren Buffett put simply is a (value) stock investor (he trades based on the the underlying value of a stock). Say WB believes Facebook is worth (exaggerated) 1 Trillion if the market was trading Fb at a market cap of 100 Billion, WB would more than likely long FB in his bet that Fb was worth more then people believe and hope to profit of said investment. Investopedia is a great entry level source for trading information if you are interested.
Thanks!
Also when trump wins or just before investors believe the win is imminent there will be quite severe drops in the s&p this is only because the institutional investors will over-inflate the s&p and take profits, not because investors believe trumps economy will be ‘bad’.
“Buy the rumour, sell the news” of course would be the common explanation to my question. However I believe that it is more likely that the market sentiment, despite the MSM’S claims & false projections of a biden presidency are bullish on Trump because they truly believe trump will succeed. What do you believe is the reason for this incredible rally pedes ?