Was it not greed that pushed the 29 crash?
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Dow Approaches 30,0000 points: What’s the point?
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Supposing the stock market crashed tommorrow how serious would it be to the economy. If the money you have invested is not being circulated it isnt doing a thing anyhow. Might mean you need to work more or later in life if your savings are decreased. That would be better for the economy. Only way I see it having much impact is on future lending capacity as the lenders will have been burnt on margin accounts and raising funds through share issues may be difficult.
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The reason for the stock market run up is fairly simple: interest rates have collapsed back to zero. The saving in interest will be converted into a bid on the asset. At zero percent interest, nearly any business plan and stock valuation can be justified.
It's obviously not sustainable. Capital does not self-replicate effortlessly, which would have to happen for capital to be made available at zero cost.
When will the exuberance come to a halt? My guess is that will be when the debt defaults of all the businesses that have to close due to the lockdowns can no longer be delayed.
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Originally posted by sawfly1 View PostWhat do you think about the head BMO
Guy saying we are just at the beginning of
A 10 year bull market?
Guess this banker is not going to say this is the beginning of a 10 year bear market . . . .
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Originally posted by beaverdam View PostAre you buying VIX? might be testing 15 by the years end.
https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ https://www.msn.com/en-ca/money/indexdetails/vix/fi-a33pk2?symbol=VIX&form=PRFIEQ
(ya, it's a crappy graph)
Personally don't buy into the inflation story as prices are as healthy as demand holds. If demand falters, deflation immediately will take hold. The sell-off is suddenly on . . . .
The VIX is a buy in-my-view as attitudes of complacency are sure to change heading into the new year.
Darn I forgot . . . this is the beginning of another 10-year bull market . . .
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Originally posted by errolanderson View PostA 10 year bull market already built entirely on central bank manipulation, insane valuations and extreme greed already isn't enough and will be followed by another 10 year bull market. Hummm . . . makes total sense to promote this to investors. Think I'll change my investment strategy on this timely advice.
Guess this banker is not going to say this is the beginning of a 10 year bear market . . . .
The real cause of the great depression is not even talked about today. I believe it was central bank money printing goosing the late stages of the business cycle in the later part of the twenties. False economic signals were then provided causing people to buy assets especially stocks with more debt. Does that ever sound familiar. How on earth are economies that have been living on life support for more than a decade now going to provide growth to service this new debt? Have been taking profits from the vaccine hype lately myself.
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