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
$5 parking right next to the bread line. Not bad.
I think that’s 25¢
Which is around $5 in today’s dollars.
What’s sad is that $5 parking is a killer deal.
Ah I see. Thanks for clarifying your intent.
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 …
When you’re a hammer, everything is a nail. That’s all they know how to do, and they still have enough capital to keep doing it.
There are insane mistakes being made multiple times a day now. At some point, the high stakes game of Don’t Break the Ice will come to a sudden end. Putting the cubes back in the game board would require an expenditure of capital. Capitalists spend money to buy more money. The only time they spend money to avoid losing money is when they’ve lost money for a very specific reason multiple times, and maybe not even then.
The visual helped.
There is a economic name for it called a Minsky moment. While I think most of economics is a joke this is one of the only valuable things from the field of economics.
Fascist coups succeed when the rich have bought into the coup.
Why would the rich seizing full control of the state make the stock market go down?
because the middle class gets gutted.
A little while ago the entire market went red. If it’s doing well now then that’s only comparative to everything going on then.
That said, gutting regulations certainly will boost profits short term, if you care more about that than human life and happiness.
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S&P500 closed at an all-time high yesterday. It’s not just up relative to a downturn.
US 30, DOW Jones, and NASDAQ all peaked a little higher in November-December last year. Crude Oil futures haven’t recovered from their 2022 high. USD to Euro is down since 2018 high and USD to GBP is down since 2016.
But yes if you look at charts going back over a decade there is a clear unbreaking “line goes up” trend. In fact, you could argue the charts have an almost asymptotic trend you see right before bubbles pop, possibly due to misevaluating AI.
What the fuck are you even talking about?
I pulled my money out when he took office. There WILL be a crash and recession, and it will be intentional. There will be all kinds of irrational exuberence to get everyone all in, and then crash it to mop up the spoils and expand the wealth gap.
Did you have a 401k or an IRA? Where did you put it to not get taxed on it?
I have an ABLE account, for people on SSI. It is untaxed, though there is a small fee for just the money to be managed. It is handy, since there is a $2,000 limit on the wealth beneficiaries can have - the ABLE account allows for up to $100,000 to be in there before most benefits are lost. It also invests the money into a stock/bonds/FDIC portfolio of your choosing. If you have enough wealth, you can just deposit money in there until you reach $500,000ish cap for what you can add.
It is really helpful for the poor, since we don’t have many methods for storing wealth that doesn’t involve a mattress. Also, ABLE accounts should be state owned - theoretically insulating them from Musk’s grubby paws. Unfortunately, my state’s ABLE program doesn’t permit Euros, so I suspect no ABLE to be safe from hyperinflation.
Why would you give a fuck about taxes? I just dont want it all lost or stolen
The stock market is a speculative vehicle whereby predominantly rich people get richer. Generally pointing at everything should indicate a lot of rich people getting richer, so what’s the issue? It’s only if you take the valuation of the stock market as some kind of core health measurement of the economy that it stops making sense. Because it’s not that.
They have most of the wealth. They don’t need the working class. Just jeep purchasing beach others netbooks and number goes up. Realized it wasn’t tied to reality during covid.
keeping its* value
It’s called 401ks, literally anyone with a 9-5 job has one. The entire retirement system was designed to keep people invested in the stock market and betting on it.
Not all of us. I prefer hard metals.
Ya beat me to it. Working class people got tricked into turning over their income to be a floor for the US stock market. I always decline 401k benefits at corpo jobs and I love the looks of bewilderment and attempted lectures I’ve received. It’s pretty obvious that HR or someone gets kickbacks for enrolling new employees.
Don’t even ask the question
The answer is yes, it’s priced in.
Think Amazon will beat the next earnings? That’s already been priced in.
You work at the drive thru for Mickey D’s and found out that the burgers are made of human meat? Priced in. You think insiders don’t already know that?
The market is an all powerful, all encompassing being that knows the very inner workings of your subconscious before you were even born.
Your very existence was priced in decades ago when the market was valuing Standard Oil’s expected future earnings based on population growth that would lead to your birth, what age you would get a car, how many times you would drive your car every week, how many times you take the bus/train, etc.
Anything you can think of has already been priced in, even the things you aren’t thinking of.
You have no original thoughts. Your consciousness is just an illusion, a product of the omniscent market. Free will is a myth.
The market sees all, knows all and will be there from the beginning of time until the end of the universe (the market has already priced in the heat death of the universe).
So please, before you make a post on Lemmy asking whether AAPL has priced in earpods 11 sales or whatever, know that it has already been priced in and don’t ask such a dumb fucking question again.
Why should anything be crashing at this point? Everyone is still working, right? Value is still being extracted from workers, right? People are still buying things, aren’t they?
The stock market will only start crashing once the effects actually reach people’s spending/working behavior, which it didn’t yet.
that’s right people lost their homes, farms, businesses, and jumped off skycrappers in 29, before the market crashed, i must have forgotten
Dingus, they are saying it hasnt reached the tipping point yet. There will be a crash but the system has a lot of inertia that needs to grind to a slow screaching halt first before we start seeing the really big effects.
This is the correct answer.
Because it’s basd on bullshit metrics that mean nothing?
A few reasons:
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Market prices are more often determined by speculation than actual intrinsic value. People will say that the market is “efficient” in the sense that everything is valued efficiently based on the value it’s worth, but take one look at meme stocks and you’ll see that prices can easily be influenced by large volumes of purchases instead of any actual intrinsic value in the corporation being invested in. A lot of money being funneled into index funds can lead to the price of stocks continually increasing without actual value of the underlying companies being taken into account as much as you would think.
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Fascism is supported by, and continues to support capitalism. Corporations benefit from capitalism, especially under a system where safeguards are removed and businesses can make larger profit margins as a result.
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A lot of the changes Trump is making hurt working people, but don’t hurt corporations. (and often even help corporations directly) For instance, he’s making union busting easier, knows that any tariffs can simply be passed on by the companies without shrinking their margins, (just costing you more), is cracking down on legal immigration to the point that illegal migrant workers are even easier to exploit with the threat of deportation, etc. A lot of the bad things Trump is doing will only affect us, not corporations or the capital owning class.
All of that makes sense only if you fundamentally misunderstand the concept of “underpinnings”. The German stock market was valueless to anyone, and it’s stocks not worth the paper they were printed on when the Nazis took over, only German companies being offered on American stock exchanges kept and grew, and realized their value during and after the war. You sounded smart there for a minute, until I thought about what you wrote. It’s like your whistling in a hurricane, a south park cop saying nothing to see here nothing to see here.
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I’m not surprised why big companies no matter what morals they claim(ed) to follow still do business like nothing happened. As long as they can strive for profits and shareholder value they will. Big business is the last place one should look for any sort of backbone.
I’m also surprised why there hasn’t been more of an impact on the stock market. I wouldn’t have expected an immediate drop of 50% or some catastrophic decrease like that. That’s because a lot of the incredibly smart economic policies from stable genius will take time to cut into bottom lines. First prices continue to go up for US consumers, spending will go down, unemployment numbers will go up, and then possibly a recession. Which he will blame on Greenland, I suppose.
Stock markets are legal gambling. As long as the gamblers still have hope they will play. Most will play without hope as well. And Trump 45 was good for them so hope is still very much alive.
At the same time, chainsaw wielding deregulation will help businesses in the US. It may not be great for consumers or the environment but tax breaks are great if you can get them. Melon Usk is not bulldozing any sort of oversight for his business interests or the IRS for no reason.
As for uprooting security alliances I think we will see a move away from US manufactured defense goods pretty soon, maybe starting next year. Europe will concentrate on its own industry more than ever. Even if they don’t find a common position to take in regards to Russia’s invasion of Ukraine, they will all look to increase spending locally rather than transatlantically, having hopefully learned that reliance on Washington is futile.
Defense contacts are harder to get rid of than a Tesla though, these things take even longer to show up on Wall Street. I mention Tesla though because numbers came out recently in France and Germany that showed a dramatic drop in new car registrations. I think this development on the micro level will eventually reach macro proportions as well. I am personally waiting for pitchforks being sharpened in Usk’s boardrooms because his doge antics and political statements cut into their bonuses.
This is the pump before the dump. Institutional investors are slowly exiting and retail investors are making up most of the volume.
We were due for a correction or crash but Biden and the Fed held it off long enough for the election. There is a lot of money sitting on the sidelines waiting to grab assets, housing etc on the cheap.
Grifters like Trump can’t wait to get it started. In every crisis there is opportunity what Trump does with this crisis will likely reshape our government.
Good thing Elon is trying to kill social security and other assistance programs ahead of the fall.
He really wants to see people suffer.
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