It won't for years until corruption is so bad it can't be hidden anymore like in 2008. But expect the insane gains to stop around mid 2021 or in 2022 and it will peter along flatlining as the administrative state and red tape gets built back up by the democrats.
I hate to be the one to tell you this but Biden is going to grow the stock market even more than Trump.
The stock market represents the biggest corporations in the USA. These corporations benefit from an empowered China, though the American people do not. Also, corporate taxes are a bit of a joke because these large corporations are often able to completely bypass them with complex tax strategies, ESPECIALLY the big corporations with foreign operations.
Also, Biden wants to take on significantly more debt than Trump would have to allocate toward pet projects which will benefit the major corps. Debt essentially under this scenario will simply act as a wealth transfer from average Americans to the big corporations.
Trump has been good to corporations because Trump has been good to America. Biden is actually going to be better for big corps but not for America.
That is an interesting perspective I hadn't considered but it makes sense, and would also explain why there was overall growth (although small) in the stocks during Obama's term. This doesn't, however, make me feel any better about continuing to invest in the stock market. At some point doesn't the façade have to end? This can't continue indefinitely, so at what point do the repercussions take effect?
There's still decades left in the system for sure. There's tons of undeveloped countries and lots of resources still untapped in the world.There will be no complete destruction of the system any time soon. A crash? Sure, those happen but the system can maintain itself far a long while.
I noticed something some years ago. The stock market’s most rapid moves are reactions to government money. Moves due to organically good company growth/profitability are far more subtle.
The stock market will be okay as long as others will still take our checks.
Not... The printing presses at the fed were basically given the green light to collpse the dollar .... Stocks gold and crypto will be your only hedge against inflation
how does crypto actually hedge against anything? It's backed by nothing. I don't get it. People are just dumping money there for now but it's never going to be widely used by the masses. It is just tulipmania, a store of value, but not a real store of value like gold. As soon as US gov creates a dollar blockchain or gold backed dollar blockchain or something along those lines, bitcoin will collapse too. Or if people just come to their senses and realize bitcoin is just a bigger fool theory exercise
It already has collapsed. They are just not telling anyone right now. Look at it. Nothing impacts it. Not a pandemic, loss of jobs, loss of income, loss of businesses, riots, attacks on the Capitol, murder inside it, voter fraud. Market just keeps going up. Market is a god damn juggernaunt...meh.
If I had to guess around MAR/APR total meltdown. Lenders will lock the doors and wait for properties to go belly up then swoop in a year later or so. Pretty much the same thing that happened last time. Going to be some amazing deals in the housing market.
I wouldn't want to invest in much in this country for the long term. Looks pretty shitty to me. You can offer me a lot of things at highly discounted prices and I still wouldn't be interested.
Interest rates. Once interest rates go up, the housing boom will come to a complete halt. People are only building/renovating right now because interest rates are so low, they can finance the insane amounts of money it takes to do their projects at 2-3x cost since building materials have gone up that much in the last year. Once it is no longer affordable to finance a $500k loan on a $300k new house, boom.
What if the Fed never raises interest rates ever again, because they fear the consequences of doing so for everyone involved (gov, corporate America, individuals)
The debt bubble has to blow at some point. They have to raise rates as a balancing act and last I was reading a few weeks ago we are due. May be a very small rate change like 1% that might not have much of an effect, but a huge jump would definitely scare off a large portion of borrowers.
Fed already has said rates will be at 0 for at least a few years though...........by that time another crisis will likely happen that, assuming things didn't collapse by then, would force them to re-commit to keeping rates at 0 again....
Really.... The fed has already said they will print to infinitum to keep stocks up... You know this right? So as the dollar collapses the value of these companies needs to rise to hold the same value... Its all about globalism now you need to quit thinking about value... P/E s are thru the roof and wont change ... The rich are going to take it all
Makes no sense. If inflation is the name of the game, then stocks will be a very bad investment for a very long time. Look at the 70's as an example. Inflation destroys businesses of all sizes. Through wage inflation, cost inflation, businesses cannot keep up.
You dont get it ... The old rules dont work dont try to find value in these companies... It doesn't matter if they make money - why cant you see what took place over the last 12 mos?
How am i expected to put money into a market that makes no sense to me, that I cannot justify myself, and the whole system looks primed to collapse, just because you say the old rules don't work, it doesnt matter if they make money. If anything that should be a glaring sign NOT to invest
whenever the federal reserve is incapable of printing dollars
It won't for years until corruption is so bad it can't be hidden anymore like in 2008. But expect the insane gains to stop around mid 2021 or in 2022 and it will peter along flatlining as the administrative state and red tape gets built back up by the democrats.
I hate to be the one to tell you this but Biden is going to grow the stock market even more than Trump.
The stock market represents the biggest corporations in the USA. These corporations benefit from an empowered China, though the American people do not. Also, corporate taxes are a bit of a joke because these large corporations are often able to completely bypass them with complex tax strategies, ESPECIALLY the big corporations with foreign operations.
Also, Biden wants to take on significantly more debt than Trump would have to allocate toward pet projects which will benefit the major corps. Debt essentially under this scenario will simply act as a wealth transfer from average Americans to the big corporations.
Trump has been good to corporations because Trump has been good to America. Biden is actually going to be better for big corps but not for America.
That is an interesting perspective I hadn't considered but it makes sense, and would also explain why there was overall growth (although small) in the stocks during Obama's term. This doesn't, however, make me feel any better about continuing to invest in the stock market. At some point doesn't the façade have to end? This can't continue indefinitely, so at what point do the repercussions take effect?
There's still decades left in the system for sure. There's tons of undeveloped countries and lots of resources still untapped in the world.There will be no complete destruction of the system any time soon. A crash? Sure, those happen but the system can maintain itself far a long while.
I noticed something some years ago. The stock market’s most rapid moves are reactions to government money. Moves due to organically good company growth/profitability are far more subtle.
The stock market will be okay as long as others will still take our checks.
What if the government held a bond auction and nobody shows up? What then?
If taxes were to go up significantly for business is 1
Not... The printing presses at the fed were basically given the green light to collpse the dollar .... Stocks gold and crypto will be your only hedge against inflation
But inflation always kills stocks. Thats what happened in the 70's according to history. Even a whiff of inflation is destructive to stocks
how does crypto actually hedge against anything? It's backed by nothing. I don't get it. People are just dumping money there for now but it's never going to be widely used by the masses. It is just tulipmania, a store of value, but not a real store of value like gold. As soon as US gov creates a dollar blockchain or gold backed dollar blockchain or something along those lines, bitcoin will collapse too. Or if people just come to their senses and realize bitcoin is just a bigger fool theory exercise
You answered your own question... Based on perceived value. You dont need anything else
So then by that logic, perception can change at any time and for any reason. I mean... right?
It already has collapsed. They are just not telling anyone right now. Look at it. Nothing impacts it. Not a pandemic, loss of jobs, loss of income, loss of businesses, riots, attacks on the Capitol, murder inside it, voter fraud. Market just keeps going up. Market is a god damn juggernaunt...meh.
If I had to guess around MAR/APR total meltdown. Lenders will lock the doors and wait for properties to go belly up then swoop in a year later or so. Pretty much the same thing that happened last time. Going to be some amazing deals in the housing market.
I wouldn't want to invest in much in this country for the long term. Looks pretty shitty to me. You can offer me a lot of things at highly discounted prices and I still wouldn't be interested.
If dumb ass Biden gets sworn in it will be coming soon.
The stock market will never 'collapse' ever again. In fact SPY just hit ATH.
Interest rates. Once interest rates go up, the housing boom will come to a complete halt. People are only building/renovating right now because interest rates are so low, they can finance the insane amounts of money it takes to do their projects at 2-3x cost since building materials have gone up that much in the last year. Once it is no longer affordable to finance a $500k loan on a $300k new house, boom.
What if the Fed never raises interest rates ever again, because they fear the consequences of doing so for everyone involved (gov, corporate America, individuals)
The debt bubble has to blow at some point. They have to raise rates as a balancing act and last I was reading a few weeks ago we are due. May be a very small rate change like 1% that might not have much of an effect, but a huge jump would definitely scare off a large portion of borrowers.
Fed already has said rates will be at 0 for at least a few years though...........by that time another crisis will likely happen that, assuming things didn't collapse by then, would force them to re-commit to keeping rates at 0 again....
Really.... The fed has already said they will print to infinitum to keep stocks up... You know this right? So as the dollar collapses the value of these companies needs to rise to hold the same value... Its all about globalism now you need to quit thinking about value... P/E s are thru the roof and wont change ... The rich are going to take it all
Makes no sense. If inflation is the name of the game, then stocks will be a very bad investment for a very long time. Look at the 70's as an example. Inflation destroys businesses of all sizes. Through wage inflation, cost inflation, businesses cannot keep up.
You dont get it ... The old rules dont work dont try to find value in these companies... It doesn't matter if they make money - why cant you see what took place over the last 12 mos?
How am i expected to put money into a market that makes no sense to me, that I cannot justify myself, and the whole system looks primed to collapse, just because you say the old rules don't work, it doesnt matter if they make money. If anything that should be a glaring sign NOT to invest
Welcome.to the world of bizarro ... I dont make the rules bud they do ... Up is down and down is up