It's official. The S&P 500 officially in a Bull Market. Republiclowns wet panties.

[Joe Capitalist]

This isn't some hill I'm trying to die on but if I was very cynical I might question my position here after seeing two people I rarely agree with say the same thing. But I think this is one of those cases that people from all beliefs can share. (although with Reich I don't agree with his definition of the real economy)


The Stock Market is Not the Economy

https://robertreich.org/post/633348633756041216

https://twitter.com/x/status/1315611971090296832

There may not be a 1:1 correlation but there is some correlation between a healthy economy and a Bull Market.
People feel more confident investing in a market where the economy is doing well and when the economy is doing well, corporations tend to have positive earnings and when they report positive earnings, their stock price typically goes up.

 

[cawacko]

There may not be a 1:1 correlation but there is some correlation between a healthy economy and a Bull Market.
People feel more confident investing in a market where the economy is doing well and when the economy is doing well, corporations tend to have positive earnings and when they report positive earnings, their stock price typically goes up.

I hear you but I look at a period like the post GFC where economic growth was slow but the stock market boomed and of course during COVID when the economy shut down and the stock market boomed. No question that there is some correlation but the Fed's actions with rates and the 'Greenspan put' are huge drivers of the stock market. We can look at companies which instead of spending money on say R&D spend it on stock buybacks. The latter is of course good for the stock price but not what you would recommend first for economic growth.

This isn't a partisan thing but just using Trump as an example and his comment of 'the stock market is a scorecard for the economy'. (Looking at the comment and not Trump) He was called out because that's not how it works. They aren't mutually exclusive of course but I think it goes back to Greenspan and his actions in '87 after Black Monday as sort of the begining of the Greenspan Put and the Fed showing its willingness to come to the aid of the stock market. (if i'm mistaken or wrong anyone feel free to point it out because I could be). That really helped lead the market and the economy on more separate paths as I understand it.

 

[goat]

I look at a period like the post GFC where economic growth was slow but the stock market boomed and of course during COVID when the economy shut down and the stock market boomed. No question that there is some correlation but the Fed's actions with rates and the 'Greenspan put' are huge drivers of the stock market. We can look at companies which instead of spending money on say R&D spend it on stock buybacks. The latter is of course good for the stock price but not what you would recommend first for economic growth.

This isn't a partisan thing but just using Trump as an example and his comment of 'the stock market is a scorecard for the economy'. (Looking at the comment and not Trump) He was called out because that's not how it works. They aren't mutually exclusive of course but I think it goes back to Greenspan and his actions in '87 after Black Monday as sort of the begining of the Greenspan Put and the Fed showing its willingness to come to the aid of the stock market. (if i'm mistaken or wrong anyone feel free to point it out because I could be). That really helped lead the market and the economy on more separate paths as I understand it.

Stock buybacks show the CEO has no creativity for risk-reward.