That's because they're constrained by policy makers.
I would argue Economic Theory almost always works long term. Supply and demand, expected inflationary result from money supply expansion (too many dollars chasing too few goods), two negative quarters being recessionary, etc). Often when government intervenes it may change the timing of achieving equilibrium but not the ultimate results the theory expected. When I told people to be careful investing in the recent pages in this thread, the caution was all based on economic theory that has existed for many decades and recent corporate activity that one would expect to respond to these trends driven by that that theory.
Who said anything about prices? The Fed buying bonds has always been about liquidity. Prices are mostly a function of interest rates.
This. Thank you. Debt, deficits, budgets, policy, regulation, how and why we spend the money are all functions of Congress. The Fed just does the best they can with the limited tools it has.
If you want to tamp down the economy, you can also do things like end the Step Up in Basis. That right there will reduce the deficit, take money out of circulation, and people will keep their jobs. But there is little will to do that in Congress.
OK, yield then.
I’ve been buying in my kids’ UTMA accounts here and there. They can’t touch it for 10+ years so I have a nice long runway for Apple, NVDA, Amazon and others.
Politics is always first.
It's bad. Wish I had more real estate. But that's also bad. My booze may be the only thing that's up.
fb.watch
About time for a correction. The market has gone almost straight up since 2009. In bought the TZA at (which shorts the Russell) 15 quite a while ago and plan on holding it for the foreseeable future.
When did you get that at 15?
