This week, Wall Street faced escalating Middle East tensions, a divided Federal Reserve, slowing economic data, and a massive wave of AI investment... yet stocks kept pushing toward record highs.
The reason the market keeps heading north is: 10% of the population owns 90% of the wealth. This group is the only one that at the end of the week that have any disposable income available to invest in the stock market.
The markets can go up forever. The only way they will rollover is when the Fed cuts the monetary injections.
I believe this is the set up along with all other manner of debt instigated venues. It was on this channel the focus was on the current repo markets and some rate anomalies.
It was in the overnight markets back in 2008 where our financial system started to lock up. We were only a day or two away from a complete lock up according to authorities such as Hank Paulson.
Wouldn't the M2 being at an all-time high contribute to the markets soaring while the economy isn't (being flooded with liquidity)? All that money isn't going to sit on the sidelines.
Thanks for raising reasonable concerns! For me the thing is not only "why are stocks soaring". I would rather know wether a correction is a matter of time (note that I am not asking when). But is a correction certain, or can this rally sustain itself for years. Rates are too high in my opinion, for a multiyear rally. What do you think.
summary;
the markets know that with the advent of CORPORATE SOCIALISM (reaganomics / trickle down / supply side theory) Wall Street investors can inflate the bubble with the guarantee that when it Pops Main Street (wage earners who havent been exempted from taxation) will pay for their losses
What happens to all the trillions generated when the "bubble" of stock Buy Backs takes its toll. And everyone realizes these companies are worthless past paper?
Massive deficit spending is the core cause of excess liquidity, the thing that is ramping up the market right now. 2026 the US Government is expected to have a 2 Trillion deficit. That money is going somewhere.
Stocks are going up because they're being pumped by debt.
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I believe this is the set up along with all other manner of debt instigated venues. It was on this channel the focus was on the current repo markets and some rate anomalies.
It was in the overnight markets back in 2008 where our financial system started to lock up. We were only a day or two away from a complete lock up according to authorities such as Hank Paulson.
Ask Hillary. it's going by the PLAN!
As always great content Mr Malek.
the markets know that with the advent of CORPORATE SOCIALISM (reaganomics / trickle down / supply side theory) Wall Street investors can inflate the bubble with the guarantee that when it Pops Main Street (wage earners who havent been exempted from taxation) will pay for their losses