Quoted from DadofTwins:I posted this in the stock market thread. Figured it would also be good to drop here.
Serious question...
WHY does the market HAVE to come down/correct itself?
Prior to the onslaught of the pandemic, everything seemed to be going great. Low unemployment, stock market was making new highs, everyone was spending and so on.
The market CRASHED in March, but really that was self inflicted because of virus news and the impending closures and lock downs. It wasn't because of fundamentals and earnings reports. So we go from Dow 29k+ to 18k in no time. Then in a quick turnaround, it starts climbing right back up to all new highs in less then a year.
Also, tell me that wasn't market manipulation to the extreme?
So, now with ALL of these retail investors pouring money in thru daytrading apps, people putting more and more money in 401k/IRA retirement accounts and the general excitement around the ease and low cost of personal investing, WHY does the market have to drop?
If we get to the other side of this pandemic, everyone will look at the world thru different eyes and not take things for granted anymore. There will be more vacations, eating out and other activities people are just ready to get back to doing.
I think we have turned a corner personally. With all of this "new money" coming into the market, getting "freedom" back sometime this year and the economy opening back up, how can we not get right back on track like we were before covid?
With all the advances in technology, science and health care, we are growing by leaps and bounds. I truly think the only thing that would hold us back and cause a drop is the constant news chatter telling us that a recession is imminent, that it has to manifest itself, that we can't keep going upwards.
Yes, we can.
Depends on how all that is financed. Is it through leverage? Interest rates are low now, which encourages borrowing, but what happens when they go up. Stock market looks less attractive when the cost of capital rises. Lots of people haven’t experienced high interest rates.