Wall Street has really become a casino bet in recent decades. Rudderless, it will behave chaotically next time a major, unpredictable event happens. A major earthquake in CA, a regime change in Iran, or any other sudden disruption could spark wild swings. Even the predictable problems, such as our commercial real estate quagmire, could cause Wall Street chaos. Long term, that financial Singularity looms. Bottom line: stuff your money in your mattress, kids.
A trend which began decades ago--perhaps as far back as when Nixon ended the gold standard--has moved Wall Street further and further from the real economy of Main Street.
Broad trends on things like interest rates impact Main Street in a very large way, and employment data still carries profound implications for the future health of American businesses, but overall, Wall Street is at best only tangentially aware of Main Street.
When the next financial crisis hits, Wall Street and Main Street are going to become hyperaware of each other. That will not be a pleasant experience for either side.
The Dow is basically at the same point when Trump took office. It flip flops about as much as he does. Park your cash in precious metals or perhaps money markets. Definitely have it in hand and let the idiots play the game, as the market doesn't really reflect the economy like it did back in the 80s when PEs were down to Earth!!
Wall Street has really become a casino bet in recent decades. Rudderless, it will behave chaotically next time a major, unpredictable event happens. A major earthquake in CA, a regime change in Iran, or any other sudden disruption could spark wild swings. Even the predictable problems, such as our commercial real estate quagmire, could cause Wall Street chaos. Long term, that financial Singularity looms. Bottom line: stuff your money in your mattress, kids.
A trend which began decades ago--perhaps as far back as when Nixon ended the gold standard--has moved Wall Street further and further from the real economy of Main Street.
Broad trends on things like interest rates impact Main Street in a very large way, and employment data still carries profound implications for the future health of American businesses, but overall, Wall Street is at best only tangentially aware of Main Street.
When the next financial crisis hits, Wall Street and Main Street are going to become hyperaware of each other. That will not be a pleasant experience for either side.
Smart, Peter!
The Dow is basically at the same point when Trump took office. It flip flops about as much as he does. Park your cash in precious metals or perhaps money markets. Definitely have it in hand and let the idiots play the game, as the market doesn't really reflect the economy like it did back in the 80s when PEs were down to Earth!!