The $3,000,000,000,000 money inserted in circulation has to have an effect, with another $3,000,000,000,000 in works.
Also as Mark points out, 2-Month AA Financial Commercial Paper is yielding just 19bp is guaranteed loss net of inflation and is TAXABLE income.
Negative rates anyone? Is it any wonder the cash is stampeding into stocks? Myself included! I hate monopoly money
It's Trump money, which is much lower grade than monopoly money. Isn't any one concerned? This morning Kudlow was floating another corp tax cut to 10%. Absolutely no benefits from trade deals. We went through 3-1/2 years of verbal market manipulation with trade deals and now we're talking about tariffs again. Tough talk with China ensures huge military spending and billions more aid for farmers - 47 billion so far. It seems that everyone just cares about a rally but these guys love leverage and debt without any way to pay for it and you-know-who is doing it with our money this time. In '80 we had stagflation and 19% interest rates, 40 years of rallies and we have 0%....anybody ready for stagflation and some..... POTTERSVILLE?
the american financial system as I have known it, is rotten. It's festering. There's no other financial system in the world more manipulated than it.
Edited by andr99, 18 May 2020 - 02:35 PM.