why is the market rallying so much?
i thought we were entering a recession year! what is the public doing with their stocks? Hold? Sell?
Hedge funds are the drivers. I would hold my positions and ride it out.
Stock Market != Economy. We could already be in recession and not know it and stock market still would rally until that news comes in. But i have no idea why it’s rallying now, it’s all people perception about economy and looks like people have confidence in current economy.
Bingo
FOMO. Fear of missing out. All the smart people see the signs that the bull market is not gonna last forever. The Fed is dumping a lot of money into the economy to prop it up. However, investors are reluctant to get out while the going is still good. If I’m cautious I would have converted everything to bonds and treasuries last month. Since I’m greedy and willing to risk it, I stayed in and got rewarded with 3.4% return on my mutual funds.
It is the deep breath before the plunge. The more it rallies the harder it will fall. Think of 2001
Yeah, I just see Tesla, goog and few other tech companies up.
This phase is know as a "Blow-off Top". Google it.
Recession is a retrospective measurement (two quarters of economic contraction), the stock market is what people think companies are worth right now.
The US market is going up because the US subsidization of other markets / countries is being reduced. Medical => 1-2 million fewer mexicans getting free healthcare. New laws to not let europe charge less and freeload on US R&D Manufacturing => tariffs have raised US domestic purchase and increased long term plans for more. Aerospace/Defense => less $$ spent on deployments and logistics, has led to more research $$ These are loose examples that you could poke holes in, but at scale and across most industries the effect will be huge. (tl:dr Trump has been correct on how much we pay for everyone else)
This guy
He’s got a point though!
Bull trap
This, every year has been a trap for the last 10 years.
I have severe Stockholm syndrome