Detached from reality? Why U.S. stocks just hit a new high

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Has Wall Street missed the news that we are in a pandemic?

FILE PHOTO: A trader looks on while waiting for the initial price of Tencent Music Entertainment company's IPO on the floor of the New York Stock Exchange in New York, U.S., December 12, 2018. REUTERS/Bryan R Smith/File Photo

“Main Street lives for today, whereas Wall Street focuses on tomorrow,” said Sam Stovall, chief investment strategist at CFRA. “There’s been a massive amount of monetary and fiscal stimulus ... and there’s a rising confidence that pharmaceutical firms are getting closer to a vaccine.” At the same time, bets that the Fed will keep rates at rock-bottom levels and stimulus flowing for the foreseeable future have pushed yields on some government bonds to record lows, driving money into equities.

Meanwhile, investors crowding in a cluster of technology and internet stocks that have come to dominate the S&P 500 have heightened concerns that the index may be vulnerable to sharp reversals if holders decide to sell all at once. DoubleLine’s Jeffrey Gundlach is among the few well-known managers who have remained bearish, telling Reuters in late July that the equity rally led by a handful of large tech firms is “classic bear market rally activity.”

 

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Why the surprise? Blue Chip Stocks have negative correlation with worker incomes. dividends reflect current and projected profits- with stimulus payments, no-bid contracts, costs are no longer affect expenditure-proof once again of trickle down fallacy.

Trump thinks the economy is the stock market. Ahhh no , millions lost jobs, millions getting evicted. MAGA

markets never cared about nonoriginal understanding mifiiid3

Greed.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around will deprive the people of all property until their children wake up homeless on the continent their

30 million unemployed. Small and big businesses closing. Totally detached.

So basically if you're rich you are getting richer. The rest of us just try to make ends meet & put food on the table. Gee, why don't I feel like this economy is stable?

The rich are getting richer and the poor poorer. We could give the rich another $3 trillion tax break and then go home and watch and wait and wait and wait for it to trickle down. Oh no you mean they bought their own stocks back instead? Well look at that.

The fed injected 2.3 Trillion dollars into the economy, not into Americans . The Markets have reaped the dividends with no reward this time down stream. The rich get richer....

Denial isn't just a river in Egypt, Reuters.

Markets are indeed forward-looking. They are now pricing in the expectation that Biden will win. Once they project flipping the Senate, expect another surge in investment.

because it's not investing, it's looting, and when the big looters have grabbed anything of value, they'll torch the place while all the minor, inexperienced are looters picking at scraps are still inside.

“Buy property when there is blood in the streets”? And stimulus coming?

What he did?

Reminder: the stock market is NOT the economy. And the economy is tanking

Hey, I'm cheering them on, of course, but it does seem an alternate reality in very painfully concrete ways. Pretty darn sure millions of real live citizens KNOW this at a gut level.

Because the US Fed has pledged three trillion in support?

The FED is buying bad debt on the American Taxpayers' dime.

Tulips anyone? I have tulips to sell. And a few tonnes of South Sea bubbles to offload.

It's actually very simple. Previous metrics showing PE values don't apply because we are in a self-induced recession. Couple that with the Fed juicing up markets and the DJIA is probably right where it should be.

Ummm greed?

is it a silence before storm!!!!

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