The stock market is now almost entirely divorced from the real economy.
The huge and almost unabated rise in the stock market the past few years, including during Trump's presidency, can be tied to the federal reserve endlessly creating more and more money out of thin air. That money is largely injected into the stock market. Thus stonks only go up or whatever they say over on wsb.
I fear we're in for a crash of epic proportions when this house of cards starts falling.
Yep, they're printing money to compensate for the crashing economy. They'll need to print more and more until everything falls apart and they can have their "great reset." More designed economic catastrophe they force on us with government so they can blame it on "free markets."
The danger that investors (including me) have is that everyone is expecting the economy to recover. However, that has already been priced into stock prices, meaning that any delay in economic recovery (even if recovery is indeed occurring) will act against the market. The shakeups that we're experiencing right now is reflective of that. I think the bull market will continue throughout 2021, but the real shakeups will start happening in 2022 when the euphoria of resuming normal activities dies down and we're left with a massive bill (lost revenue, inflation, over-valuated stocks). Not sure if the market will crash, but corrections are certain.
All the while lending to the banks at .2 % interest now your savings account gains the same intrest rate .2% or less. Leaving it 1.5% below inflation rates Killing the value of your savings directly.
Someone gave me advice (as a newbie to investing) and said just save my cash and after the market crashes hard, buy buy buy for cheap cheap cheap and hold hold hold...what say you?
That advice is generally good advice for the normal cyclical up and down trend in the stock market.
My concern with the current goings on is the upward trend now is based not on the economy but purely on the huge inflationary pressure the federal reserve is creating. I think when this bubble finally pops it could finally be the nail in the coffin of our dollar.
If I had a lot of liquid cash I might look into physical safe havens of value. Physical silver that you actually receive would be an option. Guns don't generally lose value ever. Ammo doesn't either but current market is crazy.
I interpret the weakening US dollar as a sign that foreign and emerging markets will have better purchasing power and economic growth. This is why 20% of my portfolio is invested in related ETFs. I'm super bullish on the future of India, for example. Don't overlook Africa - remarkable GDP growth.
If you haven't yet entered the market, you can either try now, as the recent market correction means you can find some stocks at a bargain, or if your thesis about an upcoming crash is correct, wait for the crash. A big part of this is psychological, though. I have a co-worker who correctly predicted the March crash and sold his shares in February, however, he gold cold feet and didn't jump back in afterwords, missing incredible opportunities. People don't know when the market has reached its low point, and so they hesitate. If you want to time the market, remember that imperfect timing is better than not trying at all, especially if you can hold your funds in their for years. However, and overall, it's generally accepted that over the long-term "Time in the market beats timing the market". If you're interested in investing, do some research and give it a go.
The stock market is now almost entirely divorced from the real economy.
The huge and almost unabated rise in the stock market the past few years, including during Trump's presidency, can be tied to the federal reserve endlessly creating more and more money out of thin air. That money is largely injected into the stock market. Thus stonks only go up or whatever they say over on wsb.
I fear we're in for a crash of epic proportions when this house of cards starts falling.
Yep, they're printing money to compensate for the crashing economy. They'll need to print more and more until everything falls apart and they can have their "great reset." More designed economic catastrophe they force on us with government so they can blame it on "free markets."
The danger that investors (including me) have is that everyone is expecting the economy to recover. However, that has already been priced into stock prices, meaning that any delay in economic recovery (even if recovery is indeed occurring) will act against the market. The shakeups that we're experiencing right now is reflective of that. I think the bull market will continue throughout 2021, but the real shakeups will start happening in 2022 when the euphoria of resuming normal activities dies down and we're left with a massive bill (lost revenue, inflation, over-valuated stocks). Not sure if the market will crash, but corrections are certain.
All the while lending to the banks at .2 % interest now your savings account gains the same intrest rate .2% or less. Leaving it 1.5% below inflation rates Killing the value of your savings directly.
Someone gave me advice (as a newbie to investing) and said just save my cash and after the market crashes hard, buy buy buy for cheap cheap cheap and hold hold hold...what say you?
And if shit hits the fan you can burn all that cash for heat.
I’ll make a nice blankie out of it. Hahaha
I'm far from an expert by any stretch.
That advice is generally good advice for the normal cyclical up and down trend in the stock market.
My concern with the current goings on is the upward trend now is based not on the economy but purely on the huge inflationary pressure the federal reserve is creating. I think when this bubble finally pops it could finally be the nail in the coffin of our dollar.
If I had a lot of liquid cash I might look into physical safe havens of value. Physical silver that you actually receive would be an option. Guns don't generally lose value ever. Ammo doesn't either but current market is crazy.
I interpret the weakening US dollar as a sign that foreign and emerging markets will have better purchasing power and economic growth. This is why 20% of my portfolio is invested in related ETFs. I'm super bullish on the future of India, for example. Don't overlook Africa - remarkable GDP growth.
I agree with you. Thanks for the tip!
If you haven't yet entered the market, you can either try now, as the recent market correction means you can find some stocks at a bargain, or if your thesis about an upcoming crash is correct, wait for the crash. A big part of this is psychological, though. I have a co-worker who correctly predicted the March crash and sold his shares in February, however, he gold cold feet and didn't jump back in afterwords, missing incredible opportunities. People don't know when the market has reached its low point, and so they hesitate. If you want to time the market, remember that imperfect timing is better than not trying at all, especially if you can hold your funds in their for years. However, and overall, it's generally accepted that over the long-term "Time in the market beats timing the market". If you're interested in investing, do some research and give it a go.