
S&P 500 Sets First Record Since February, Erasing Its Coronavirus Plunge - tempsy
https://www.wsj.com/articles/the-s-p-500-sets-first-record-since-february-erasing-its-coronavirus-plunge-11597781130
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jadler999
This has been a time to rethink how we understand the markets. Macro economic
conditions are in no way back to normal. How can we be approaching all time
highs? I would predict a market correction but what do I know? I am simply in
shock with the state of the market. Maybe I underestimate the growth of retail
investing?

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ericbarrett
The price of securities is also an interface between the perceived value of
the company and the value of US dollars exchanged for shares thereof. So while
the market may be “bullish,” it could also be that the value of dollars has
dropped and it takes more of them to convince another trader to let go of
their shares.

Obviously the forces at play are quite complicated, but it’s my belief that
this is driving a good part of the rise. Who wants cash when the Fed is
printing $trillions? Companies can raise their prices to keep their costs at
the same fraction of revenue, so in the current environment of loose money it
seems a sounder investment to many, especially if the government eventually
continues the direct-to-citizen stimulus.

This is not financial advice etc.

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jadler999
I wonder what the long term ramifications will look like of this debt. Even a
democratic president won't be able to raise taxes enough to get debt levels
back to a healthy level and the interest the US is going to owe is an alarming
% of the federal budget. The US can say goodbye to the dollar being the
world's reserve currency and goodbye to funding the programs that might spur
renewed growth.

They do say crisis is an accelerator of the rise and fall of super powers!

