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Classic bear market trade pattern. Rallies fail, as fiscal support undercuts economic activity. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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Classic bear market trade pattern. Rallies fail, as fiscal support undercuts economic activity. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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Lars Pålsson Syll writes Andreas Cervenka och den svenska bostadsbubblan
Mike Norman writes Trade deficit
Merijn T. Knibbe writes Christmas thoughts about counting the dead in zones of armed conflict.
Lars Pålsson Syll writes Debunking the balanced budget superstition
| Classic bear market trade pattern. Rallies fail, as fiscal support undercuts economic activity. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ |
Is this a case of institutional investors taking the opportunity to sell while retail is buying?
"Buy the dip" is all newbies know, and it's worked all their adult lives. So they will average down into REKT City while institutions unload their bags onto them. Stonks
BUILD BACK BETTER!
Market can't hold rallies when the economy is no longer supported by moratoriums, forbearance, and free cash.
My parents who would probably be your grandparents age or older used to say war is good for the economy. But that doesn't seem to make any sense. We're spending money blowing stuff up. But fiscal spending for a war economy where your country doesn't get blown to smithereens, that is good for the economy. It's free money. World War I unleashed the roaring twenties. World War II plus the Cold War unleashed the baby boom boom, Plus the Interstate Highway Act that was a giveaway to the automakers. I mean the interstate was for National defense.
@dilbertgeg Imagine what would happen if they directed that will to spend/develop internally to actually build up the nation and its people. Hell, even a small percentage could be used to build infrastructure worldwide in the poorest countries. It would create an unshakable alliance that nobody could defeat.
How soon would the stock market be impacted by the lower fiscal flows?
It seems like it could be pretty soon with q3 gdp predicted at 1%. I think some corporate earnings will look good this quarter, but if this continues, next quarter will be bad.
Isn't the price of gold controlled by the derivatives markets ' alchemy ??
From what I understand, derivative market manipulators only control the details of price movement over shorter term periods, and maybe longer term if they can get away with it. But they can't control the fundamental forces that drive prices over time. All they can do is manipulate the fluctuations on the way to wherever the price is going.
I understand but supposedly on October 18th the infrastructure deal will be approved. Unless on that day the bill is not approved then I think it will go down strongly.
I'm hanging on to a few infrastructure stocks that are currently down. Be nice to see a bounce on those.
If on the 18th of October the infrastructure deal is not approved then that will be the catalyst. If it is approved then it will continue up
The Spice must flow…
I had something set to sell with limits, and they sold in the brief rally. That's good. I'm probably going to be stuck sitting on some losers for a while. United Airlines for one example. I'm not panicking over paper losses. Just keep them for the turnaround eventually.
I agree, good analysis of the current situation.
{Indigenous people day}
Thanks, Mike!?
Am I nuts to think is my time to really make something of myself or should I wait for the next rally