Is there such a thing as taking money out of the market? Because for every seller taking money out, there is a buyer who buys what the seller is selling and puts the same money in what the seller took out.
I believe that the article is referring to the total stock market capitalization.
For example, despite the pandemic, the total market value of listed American companies increased 20.22% during the year 2020.
On December 31st 2020 total market capitalization of the U.S. stock market was $45,310,009.1 million. Three months later it was
$49,107,685.7 million (3/31/2021)
PS: During the 2008 crash it was: 12/31/2008 $11,461,287.6 million.
I believe that a very small portion of stimulus money given back to the public wasn't used to buy stocks...it was likely used to keep on living.
The majority of people living from pay check to paycheck are not TRADING stocks anyway. They are buying stuff and staying in debt according to reports:
They may invest into the market thru their 401K, etc. but they do not normally buy or trade stocks.
However I do know people who recently bragged on social media that they were TRADING stocks and Bitcoins for the first time in their lives using their unneeded big government windfall money... and making big easy money doing so.
Edited by Rogerdodger, 10 April 2021 - 11:33 AM.