Also, when people invest in a mutual fund, the fund has no choice but to buy at whatever price the market is at. So when you constrict consumption through curfews, the savings end up in the market, instead of in the economy, and it doesn't drop as much as it should.
This is happening where I live, even though borrowing is not cheap here. Funds buying into a ridiculously overpriced market, which has long since overshot it's theoretical worth (as valued by discounted cash flow method, let's say).
That’s exactly what it is. My understanding is that Blackrock built a city sized computer somewhere like Alaska and created high frequency trading and basically runs Nasdaq and and NYSE’s software backbones.
So black rock and vanguard sell stocks to each other, back and forth, thousands of shares ping ponging 100’s of times a second, each bid a penny higher than the last— or lower—
It’s so rigged, but like with Madoff, the only thing the regulators can do is look away.
S&P will loose 70-80% of value. Only reason it’s going up is that it’s a sponge for excess capital. This ends when price discovery begins.
Also, when people invest in a mutual fund, the fund has no choice but to buy at whatever price the market is at. So when you constrict consumption through curfews, the savings end up in the market, instead of in the economy, and it doesn't drop as much as it should.
This is happening where I live, even though borrowing is not cheap here. Funds buying into a ridiculously overpriced market, which has long since overshot it's theoretical worth (as valued by discounted cash flow method, let's say).
That’s exactly what it is. My understanding is that Blackrock built a city sized computer somewhere like Alaska and created high frequency trading and basically runs Nasdaq and and NYSE’s software backbones. So black rock and vanguard sell stocks to each other, back and forth, thousands of shares ping ponging 100’s of times a second, each bid a penny higher than the last— or lower— It’s so rigged, but like with Madoff, the only thing the regulators can do is look away.
90% of the s&p have had a really, really bad 2 years.
the FAANG stocks are, quite literally, to blame for the s&p bubble.
why a bubble? buying back their stock w/ dang-near free money.
Yup, look up company stock buybacks—- all time high rn
Fed has been buying up assets during all of covid, they said today they will start dumping on the first rate hike.
imma call it the TRI-FUCK-TA.
rate hike + QE taper + dump.
folksies, market gonna go scurred. will be an opportunity.