Or big corporations were able to benefits because of the lockdowns. Also, tech is over-represented and they are not nearly as affected by the lockdowns compared to sectors like real estate.
I'm not going to pretend to understand how the overall market acts the way it does, especially right now, but what I have somewhat figured out is it is a combination of -
Federal Reserve playing with things behind the scenes
Market sentiment - if everyone is positive and keeps buying it doesn't have to reflect the real world as the market should be future looking
Rest of the world is shit so we have inflows of cash to keep things up from other countries; also reserve currency
interest rates so low that the stock market is one of the few places for an actual return
I personally haven't touched any of my stocks during this whole COVID nonsense besides one "fun" play stock that I liquidated end of Feb. I have additional money but I honestly have no idea what to do with it at these market valuations.
We had a fire drill, (Covid-19) and learned the free market was far more resilient and far more durable then anticipated. The trump bucks kept the majority of the wolves from the door. The recovery is far outpacing indicators, We are about to enter unforeseen territory where demand far outstrips supply for years to come.
We actually delivered on two things thought not possible by "ECONOMISTS". The market has started decoupling from centralization at speed, and we are doubling our efficiency and pairing it with resilience. This is a long term trend that we have identified for the foreseeable future. You will see this from food processing to manufacturing.
Or I have this all wrong, and my clients are going to pay a heavy price.
In February, unemployment was at 3.5% and the S&P 500 was around 3400, which at the time seemed overvalued because it had gone on a crazy run up.
Today, unemployment is about 11%, and you could argue it's really higher because a lot of small business jobs are currently being preserved by the PPP, and the S&P is close to 3200.
I think it's clear that the stock market has become totally disconnected from the real economy. The market is basically pricing in the assumption that within the next 12 months the economy will be back to where it was and surpass levels we saw earlier this year. This may happen if everything goes right, but since it's an election year, we know everything won't go right. The globalists will use every tool in their toolbox to destroy the economy before the election.
Also, the market is totally ignoring the huge risk associated with decoupling from China, which will be great in the long run, but will probably pound the markets in the short to medium term because it will hit large company profits hard.
Personally, I think the market is overvalued at least 10-15% right now.
The market is not a mirror of the current job/economy but a Promise that businesses plan to grow in the future and the confidence Investors have in that promise...
Walmart, Amazon, Big Box stores (Stock on the Market) were positively affected by all this BS...ppl buying way to much and stores cutting hours. Not to mention their competition (Mom and Pop stores) is all but destroyed at this point.
Or the news is making you think things are in the shitter, more than they actually are.
Traders don't operate from info on CNN. That's why markets went up after Trump was elected.
Or big corporations were able to benefits because of the lockdowns. Also, tech is over-represented and they are not nearly as affected by the lockdowns compared to sectors like real estate.
I'm not going to pretend to understand how the overall market acts the way it does, especially right now, but what I have somewhat figured out is it is a combination of -
I personally haven't touched any of my stocks during this whole COVID nonsense besides one "fun" play stock that I liquidated end of Feb. I have additional money but I honestly have no idea what to do with it at these market valuations.
We had a fire drill, (Covid-19) and learned the free market was far more resilient and far more durable then anticipated. The trump bucks kept the majority of the wolves from the door. The recovery is far outpacing indicators, We are about to enter unforeseen territory where demand far outstrips supply for years to come.
We actually delivered on two things thought not possible by "ECONOMISTS". The market has started decoupling from centralization at speed, and we are doubling our efficiency and pairing it with resilience. This is a long term trend that we have identified for the foreseeable future. You will see this from food processing to manufacturing.
Or I have this all wrong, and my clients are going to pay a heavy price.
In February, unemployment was at 3.5% and the S&P 500 was around 3400, which at the time seemed overvalued because it had gone on a crazy run up.
Today, unemployment is about 11%, and you could argue it's really higher because a lot of small business jobs are currently being preserved by the PPP, and the S&P is close to 3200.
I think it's clear that the stock market has become totally disconnected from the real economy. The market is basically pricing in the assumption that within the next 12 months the economy will be back to where it was and surpass levels we saw earlier this year. This may happen if everything goes right, but since it's an election year, we know everything won't go right. The globalists will use every tool in their toolbox to destroy the economy before the election.
Also, the market is totally ignoring the huge risk associated with decoupling from China, which will be great in the long run, but will probably pound the markets in the short to medium term because it will hit large company profits hard.
Personally, I think the market is overvalued at least 10-15% right now.
If there are other explanations, please enlighten me using simple language suitable for a small child. Thanks in advance
The market is not a mirror of the current job/economy but a Promise that businesses plan to grow in the future and the confidence Investors have in that promise...
Walmart, Amazon, Big Box stores (Stock on the Market) were positively affected by all this BS...ppl buying way to much and stores cutting hours. Not to mention their competition (Mom and Pop stores) is all but destroyed at this point.
They know covid is fizzling out.