BONKS
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futures almost positive after being -1% 2 hours ago
Every industry, but particularly those that like to borrow large sums of money. Get ready for a lot of bonds to be issued to finance stock buy backs.
Underwriting corporate debt sure feels like UBI for big companies.
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Optically this is going to be really bad.
Only for people that understand what’s going on. The popular press is very likely to frame this as “Fed takes unprecedented steps to help economy”. I would be shocked if anyone talks about how this tilts the playing field further in favor of large corps, encourages leverage, etc.
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With these moves and more (corporate) stimulus, ATHs don’t seem impossible.
The optics on ATH during the second great depression would be absolutely awful lol.
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I’d say they’re fairly bad right now but I agree and it would be the perfect advertisement for this administration’s incompetence (and their crony federal reserve).
They’ll claim it can’t be a depression if the stock market is up and they’ll get a lot of buy in for that.
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Well they will be giant hypocrites because when the stock market climbed during the entire time of the Obama administration we were constantly reminded about how the bootstrappy rust belt real Americans were being left behind. But being hypocrites is kind of their thing, so…
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It’s not hypocritical if you genuinely believe in double standards. MAGA.
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Eh. The level of suffering for the next few years is going to be unlike anything most Americans have ever experienced. They are not going to be a happy bunch and they are going to be looking for people to blame. The stock market being at ATH’s is a great way to direct that rage toward the rich/corporations.
Seriously this is a big moment with the potential to change the meta. One of the things the GOP understands implicitly and uses to good effect is that political pain = political capital. This is a pretty good opportunity for leftist populists to get work done.
America is so beaten down the country has no expectation that political action will make anything better. The suffering and anger will not be directed towards positive political outcomes. It will manifest itself in deaths of despair and heightened tribalism.
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I’d love to argue with you on this, but the record is consistent with your point. For all of the 21st century many Americans have responded to erosion of their quality of life with an insistence that government beat down some other group so they can still have someone to punch down at. So much for the rising tide lifts all boats assertion from the pro-capitalist right.
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Are any of you throwing additional $ into the market based on this news? I’m not sure what the correct balance is given the curveballs presented both by this and by a likely-upcoming second-wave.
For me, it’s the opposite - every day I have to fight the inclination to sell stuff. I’m scheduled to get some extra compensation at the end of each of the next 3 months, and I’m going to hold that in cash whereas I would normally invest it. I could argue that this is a perfectly rational liquidity move, since we’re probably going to replace our windows and carpeting in the next 12 months, and you don’t want money in the market that you’ll need in that short period. But really it’s because I don’t understand how these levels of prices can generate reasonable returns in the next 10 years if the economy collapses.
I have $10k left on a car loan at 3.5% and in my mind paying that off is almost certainly a better risk reward tradeoff than investing right now. This is a real battle between my emotions and my academic PhD belief in roughly efficient markets.
I’m in the same boat but the research is very clear that humans are terrible at predicting future returns. I’m putting my head in the sand and sticking to my plan.
Thanks. I should clarify that this isn’t really an inclination to gamble, but a consideration of rebalancing away from what has been a conservative investing period (the last year or so) for us. With the disclaimer that my own PhD is wildly distant from anything stock-related, I agree that debt payoff is a sensible use of excess cash right now. We’ll probably throw some at my wife’s remaining student loans.
I’m trying to stick to my plan, but I’ve decided to hold 18 month expenses in cash instead of 6 months. And then just carry on with my normal investment plan, which is for the most part 60:40 stonks/bonds. And if the market really tanks I’ll ramp it up to a more aggressive allocation.