Confused Investor wrote:
Market keeps hitting record highs almost daily, sometimes rising more than 0.5% in a day... Been rising almost daily for a month straight. And why??? Something strange seems to be going on. I don't know what, but none of this makes sense to me.
QE, not something strange. Hundreds of billions in a few weeks—where do you think it goes? It is just a few actors bidding things up, and not all things, at that.
It is because ultimately the Fed is the beeyotch of politicians—something that has been true for a long time now. IMO the current dynamic reaches back to the oracle.
Markets must rise, interest rates must be kept low, inflation must be under-reported, employment over-reported, and growth carefully fudged in order for current systems to be maintained as systems.
The casualties will be the dollar, and the little guy who holds and uses it.
I will get out before the election, and I may miss a good opportunity, but I don’t want the risk. But until that time, this leg up is predictable and valuable.
QE will continue, rates will not rise, etc for a while yet—and certain equities will elevate.
your point is that average valuations, low interest rates, nassively profitable companies, high consumer spending, forescasts of rising earnings, low inflation, global peace...are not relevant to stock prices rising.
That the all-purpose answer to rising stock values is...QE.
I mean come on.
Also there is no QE.
Jay Powell said so himself.