THE STOCK MARKET VS. THE SUPERMARKET:

THE STOCK MARKET VS. THE SUPERMARKET:

THE STOCK MARKET VS. THE SUPERMARKET:
 
As I’ve written numerous times in the past few months – how many of you have asked me WTF? There are more people unemployed than in the Great Depression and the stocks are just about to make new highs. How is that possible? This is a complicated issue. For one thing, when the markets crash the rich don’t sell – they buy! They see every downturn in the equities as a fire sale and scoop up all the shares that the frightened middle-class have dumped in panic. Since this crash began the FEDS have pumped hundreds of billions of dollars into the markets to shore them up.
 
One reason they did this is to attempt to prevent a worse situation as 401Ks dissolve. Another reason was to prop up Trump and aid his reelection goals. When hedge funds see this happening they jump in and rally the DOW and the S&Ps even more. Remember, the Stock Markets are not an indicator of the economy. They are only an indicator of the stock markets. The markets rallied from 1931-37 in the midst of the worse economic collapse in history. They trade on what ifs. What if they invent a vaccine and the pandemic ends? What if the cities reopen and the economy gets back on track? What if the markets rally and I’m not a part of it? That’s what they are betting on.
 
Also, since Trump has been in office they have artificially lowered interest rates so that buying bonds or CD’s is no longer a safe or realistic investment. They have made it so that the only way to make any real money is through the stocks. And so we all watch CNBC or read the numbers on our phone, and check our 401Ks repeatedly to see if and when we can finally move to Miami, or Barbados or wherever and stop working. That’s an over-simplification of why the markets are rallying while Rome burns.
 
Wait to see what the stocks do on Monday morning when the unrest and violence finally sinks into the collective consciousness. It will be a rude awakening.

Oh boy, on behalf of those wondering when it is wise to re-enter the stock market, I appreciate your measured post!