It's All Biden's Fault!

Tecumsehsbones

Hall of Fame Member
Mar 18, 2013
60,212
9,451
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Washington DC
Oh dear.

The Dow and the S&P 500 hit record highs today.

So, fake news? Or will we suddenly decide that good stock market performance when Trump is in office is great, but when Biden's in office, it's BAD?
 

B00Mer

Make Canada Great Again
Sep 6, 2008
47,127
8,145
113
Rent Free in Your Head
www.canadianforums.ca
The reasons why stock market only goes up.

Here are the axioms:
  1. Inflation exists. Money saved in the bank is being inflated away for any individual/institution. Inflationary pressure forces spending/investment.
  2. Money must go somewhere. People/institutions that sold stocks for cash, which loses value over time, must reinvest the cash back to the market at some point.
  3. 401k/Retirement/wealth management automatically purchase investment assets. A portion of everyone's salary is automatically invested into the market.
  4. The US stock market is 55% of the world market and attracts capital from all over the world. Stocks are being boosted not just by American firms and individuals, but people from all of over the world allocate their wealth in the US market and hedge against their own domestic inflation and uncertainties.
  5. QE. Fresh money is printed and put in the stock market.
Most importantly - FOLLOW THE MONEY: Where does the money go when someone sells their stock?
  1. If the money goes in the bank: The bank will invest or lend out that money, which will find its way back to the market.
  2. If the money gets spent: It will find its way back to the market through the producer of the goods and services from 401k of employees, the investment/bank of the producer.
  3. Reinvest at the "dip".
  4. Invest in other assets like Cryptocurrencies, NFTs, or commodities such as Oil, Silver and Gold. Which arguably carries more risk or lower growth, and doesn't encourage national economic growth at the same level as the stock market.
  5. Invest in pre-IPO companies. Which sees most of the ROI when it goes public.
Money always find its way into the market. The stock market is the engine that drives innovations and new business ventures.

 

pgs

Hall of Fame Member
Nov 29, 2008
28,516
8,123
113
B.C.
The reasons why stock market only goes up.

Here are the axioms:
  1. Inflation exists. Money saved in the bank is being inflated away for any individual/institution. Inflationary pressure forces spending/investment.
  2. Money must go somewhere. People/institutions that sold stocks for cash, which loses value over time, must reinvest the cash back to the market at some point.
  3. 401k/Retirement/wealth management automatically purchase investment assets. A portion of everyone's salary is automatically invested into the market.
  4. The US stock market is 55% of the world market and attracts capital from all over the world. Stocks are being boosted not just by American firms and individuals, but people from all of over the world allocate their wealth in the US market and hedge against their own domestic inflation and uncertainties.
  5. QE. Fresh money is printed and put in the stock market.
Most importantly - FOLLOW THE MONEY: Where does the money go when someone sells their stock?
  1. If the money goes in the bank: The bank will invest or lend out that money, which will find its way back to the market.
  2. If the money gets spent: It will find its way back to the market through the producer of the goods and services from 401k of employees, the investment/bank of the producer.
  3. Reinvest at the "dip".
  4. Invest in other assets like Cryptocurrencies, NFTs, or commodities such as Oil, Silver and Gold. Which arguably carries more risk or lower growth, and doesn't encourage national economic growth at the same level as the stock market.
  5. Invest in pre-IPO companies. Which sees most of the ROI when it goes public.
Money always find its way into the market. The stock market is the engine that drives innovations and new business ventures.

That makes some sense on an elementary level but it is still worth some thought .
 

Jinentonix

Hall of Fame Member
Sep 6, 2015
11,619
6,262
113
Olympus Mons
Oh dear.

The Dow and the S&P 500 hit record highs today.

So, fake news? Or will we suddenly decide that good stock market performance when Trump is in office is great, but when Biden's in office, it's BAD?
Well, according to the Democrats and their propaganda machine called the MSM, record stock market performance is meaningless.
 

IdRatherBeSkiing

Satelitte Radio Addict
May 28, 2007
15,253
2,883
113
Toronto, ON
Simple formula on the importance of the stock market used by all political parties:

IF YOUR PARTY IN POWER:
-- If stock market goes UP -- TAKE CREDIT
-- If stock market goes DOWN -- It's of no importance
IF YOUR PARTY NOT IN POWER:
-- If stock market goes UP -- It's of no importance
-- If stock market goes DOWN -- IT'S THEIR FAULT