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Pastimes : The Philosophical Porch

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To: Rarebird who wrote (25988)6/4/2025 9:34:27 AM
From: Real Man  Read Replies (1) of 26251
 
In the dot com bubble rates were higher but were within a secular downtrend, Clinton reversed budget deficit even if it was done with internet bubble profits. Right now both gold and the budget deficit are making an all time high. I guess you can make an argument that broke people (those with high level of debt) don’t own US stocks, but that would be incorrect. They were conditioned to BTFD because the market always comes roaring back, they invest through 401K plans. Like bubble housing, stock market is looking for a pin. That pin is employment: as long as people have jobs, 401k inflows will continue, but if they lose their job they may be forced to sell. Then the flush final bear market selling comes in when stocks are no longer considered a good investment and are universally hated. I think right now Americans have a love affair with the stock market, foreign countries not so much, but it is either hard or impossible to understand foreign stocks fundamentals,
in particular the ownership structure in China is very different from US.
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