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re: What keeps the stock market afloat?

Posted on 4/4/23 at 1:44 am to
Posted by Penrod
Member since Jan 2011
41827 posts
Posted on 4/4/23 at 1:44 am to
quote:

Explain how inflation keeps the stock market high

This was explained in The Wealth of Nations in 1776. It is essentially the Supply and Demand curves. When the supply of something radically increases, against a stable demand, the price goes down.

In this case the supply of money increased when the feds manufactured dollars to cover their massive deficit spending. This caused the “price” of dollars to go down, meaning you need more of them to buy something. That is called inflation.

I used to be willing to sell my stock to you for $100 per share, but with these new devalued dollars, I’ll charge $110. That’s how inflation props up the stock market.
This post was edited on 4/4/23 at 1:44 am
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
71350 posts
Posted on 4/4/23 at 3:29 am to
quote:

Every single news outlet, and especially financial related media shows, are all doom and gloom talk about impending recession.


Then there is Jim Cramer.
Posted by umrebel2009
Member since Feb 2010
7371 posts
Posted on 4/4/23 at 4:50 am to
401ks
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67568 posts
Posted on 4/4/23 at 6:51 am to
Commercial real-estate, both office space and retail. That is what is driving the current financial collapse more than anything. Residential will lag, but is already showing signs of a huge crash, bigger than 2008.
Posted by AUCom96
Alabama
Member since May 2020
5486 posts
Posted on 4/4/23 at 6:58 am to
The federal reserve.
Posted by Sail33or
Member since Jan 2021
145 posts
Posted on 4/4/23 at 7:46 am to
1. Trillions still available from Government
2. Companies still living off of Trillions from COVID relief
3. War machine and suppliers in overdrive
4. Energy always needed
5. Consumer Zombies function as always
6. Pension Fund and Wall Street Brokers must buy to keep making "THEMSELVES" Billions
7. It is monopoly money
Posted by deltaland
Member since Mar 2011
92698 posts
Posted on 4/4/23 at 8:15 am to
quote:

Real estate prices are cratering, so it’s not safe to park money in land.


Maybe commercial or homes but I don’t think land by itself is a bad investment. It’s never a bad investment
Posted by bayoumuscle21
St. George
Member since Jan 2012
4740 posts
Posted on 4/4/23 at 8:19 am to
quote:

Explain this to me like I am 5 please.


Youtube University
Posted by SantaFe
Baton Rouge
Member since Apr 2019
6856 posts
Posted on 4/4/23 at 8:19 am to
If you don't bet you can't win.
The Stock Market is a form of gambling but folks will need food,fuel and shelter.
Posted by Tantal
Member since Sep 2012
15377 posts
Posted on 4/4/23 at 8:38 am to
quote:

Enter a global CBDC controlled by a cabal of global financiers and mega-corporations with full support of all the big tech companies.

That would require global cooperation of all governments, which our own government would never go along with. The value of any currency is only as strong as a country's ability to militarily enforce order. We are the only country that can do that. In fact, the entire global trade system was built on the back of the United States Navy. No politician in Washington, regardless of party, is going to relinquish that power.
Posted by Big Scrub TX
Member since Dec 2013
34344 posts
Posted on 4/4/23 at 10:56 am to
quote:

Commercial real-estate, both office space and retail. That is what is driving the current financial collapse more than anything
CRE is "driving the current financial collapse"? WTF are you even talking about?

quote:

Residential will lag, but is already showing signs of a huge crash, bigger than 2008.
No, it isn't.
Posted by Big Scrub TX
Member since Dec 2013
34344 posts
Posted on 4/4/23 at 10:57 am to
quote:

but I don’t think land by itself is a bad investment. It’s never a bad investment
Well, that's silly. Price is everything. "Land at any price" is not an investment strategy.
Posted by Motownsix
Boise
Member since Oct 2022
2247 posts
Posted on 4/4/23 at 11:10 am to
quote:

Quantitative easing?


They started quantitative tightening in August.
Posted by Motownsix
Boise
Member since Oct 2022
2247 posts
Posted on 4/4/23 at 11:22 am to
quote:

My understanding of economics is more political and historical. I think there’s been a union between the Fed and corporate America, with the policy apparatus backstopping all of it, that has totally decoupled the trading of equities from the realities of life in America. There is no way that it ends well, but I expect they will instigate a war as default looms. If you doubt that they’d risk your life, or even all life on earth, to protect their gains, then you are a sweet summer child.


The personal finance mistake people keep making is viewing economics through a political scope. The Obama years were the buying opportunity of a lifetime and people sat on their wallets because they were listening to political noise.
The complaints about the economy is equally outrageous. Spend some time listening to earning reports. Hotels, airlines, restaurants all say the American consumer has money and is spending money. The auto industry claims to be in a sweet spot between supply and demand. Interest rates are slowing down home buying, but prices are hanging in there. If you bought a home more than 3 years ago you have decent equity in it. You can’t spend more than a decade with zero interest rates. That had to change. Pent up demand for home buying is going lead to a surge in prices down the road.
Posted by Motownsix
Boise
Member since Oct 2022
2247 posts
Posted on 4/4/23 at 11:31 am to
quote:

The Stock Market is a form of gambling


That’s an interesting way to brag about being poor.
Posted by JColtF
Lake Charles, LA
Member since Aug 2008
4749 posts
Posted on 4/4/23 at 11:47 am to
quote:

Explain how inflation keeps the stock market high


When inflation devalues the currency anything traded in that currency gets more expensive
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