Make no mistake stock market doesn't have to follow economy. Recent bull market is fuelled purely by liquidity injection by central banks printing money. And fear that inflation could ensue. Investors have no place to park their money but the stocks. Or real estate, or gold. All have gone up. If you are waiting for market to crash because of economic recession it'll be wrong reason. Sure market might crash again but not because of bad economy. In my view it'll crash if economy gets better and covid goes away and central banks stops money printing because it thinks economy no longer needs support. Then all the artificial stimulus goes away. In other words, a good news on covid vaccines is the sell signal. Before then, the market will keep grinding higher.
Stocks are going up because of inflation fear
- Thread starter George The Curious
- Start date
interesting perspective george. so do you think the next US stimulus pkg will prop the markets even further or just maintain at where they are now....DOW at 27000.
when you have more demand for toilet paper than luxury cars, there would be more concern for deflation. when there is more demand for luxury toilets, i would fear inflation. but dang it, that stock curve came roaring back up like it was 1999
