I have no idea how while Trump is a) ripping out the underpinnings of constitutional law which, in turn, is all that holds up all other laws (including transactional) in the US AND b) ripping apart the post war Western defense alliance leaving Europe and Australia completely exposed and vulnerable AND c) going to impose global reciprocal tariffs, which are going to kill trade and plunge the country and the world into the greatest economic depression (coincidentally) since the 1930’s, how the market isn’t down 75% - 90% by this point. Hopes & Dreams? Hallucinogens? Heroin?
What power on earth is allowing Hedge Funds, Banks and Small Investors the justification to keep betting on an underlying business system which is literally being pulled apart at the seams with no real hope of being functional shortly. How is this happening. It’s like I’m taking crazy pills every day. The market should look at what Trump’s already done (much less what he still promises to do) and say, whoop that’s us, we’re audi, this is insane, we can’t trade our value as a corporation any longer, we don’t know where supplies, labor, administration, distribution, sales, or any law governing any of it stands, we have to pull all our monies out, and put them someplace safe like our pockets.
What is happening to keep the market propped up, when literally everything, everywhere that it needs for stability in projected earnings is being hollowed out beneath it?
edit 2/20 : lol edit 2/21: lol
The stock market will always be up and going up if people keep putting more money in it.
Stocks represent all assets that can be sold and traded publicly. Although US infrastructure is crumbling, all the shit is still there.
Times are hard but we still have obscene material wealth (for now, here is hoping climate change doesn’t reduce that too much). Ironically, stocks should have gone down in the pandemic cause of the productive capacity dropping but it didn’t cause a lot of cash was printed.
For stock prices to tumble down and crash, people need to take their money out of it. That’s only going to happen if there is another economy that people prefer to put their money in (like China).
So what is more likely to happen is we keep having stock prices go higher and higher, cause more and more money would be in circulation (so inflation). But our productive capacity could drop. So we could become much more poor, have little wealth all around, and go to the baker to buy 1 loaf of bread with $1000 price tag.
TLDR: when your economy represents basically “everything”, it won’t crash unless human civilization crashes.