You guys start one of these threads every freaking day and each time I try to hint as to why this market cannot go down too far, yet you are too stubborn to accept it.
This market is priced in $USD and the supply of $USD is constantly growing at an increasing pace. So simple economics can show that if the supply of USD is growing that means the buying power of each USD is lowered by a proportional amount, leaving all other factors constant. Soooo, if the supply of USD grows by 10%, that means the US equities should increase by about 10%, assuming nothing has changed too drastically.
But let's take a more realistic look. While a big portion of the current US equity market is a bunch of BS companies with no real useful assets besides "technology" that is really more of a luxury than a vital commodity (yeah like GOOG), there is also a big portion of REAL companies with REAL assets. Like anything from metal mining, construction, food, commoditized production, etc. If the market "crashes" while USD supply continues the same growth, these companies because a great bargain for the rich who want to grab real vital assets. Think of companies like GE, Dupont, Caterpillar and the other big cap industrials that have not fully sold off their real production assets.
It's just asset inflation via Mexico style. There is a lot going on behind the scenes abusing this fraudulent financial system that is only going to make sure this market cannot go down too far.
Also, do not forget the big banks who are becoming a bigger and bigger portion of this market. These guys are the key orchestrators in the paper pushing game. Do you really think they are gonna let their own stock take a serious dive?
This market is priced in $USD and the supply of $USD is constantly growing at an increasing pace. So simple economics can show that if the supply of USD is growing that means the buying power of each USD is lowered by a proportional amount, leaving all other factors constant. Soooo, if the supply of USD grows by 10%, that means the US equities should increase by about 10%, assuming nothing has changed too drastically.
But let's take a more realistic look. While a big portion of the current US equity market is a bunch of BS companies with no real useful assets besides "technology" that is really more of a luxury than a vital commodity (yeah like GOOG), there is also a big portion of REAL companies with REAL assets. Like anything from metal mining, construction, food, commoditized production, etc. If the market "crashes" while USD supply continues the same growth, these companies because a great bargain for the rich who want to grab real vital assets. Think of companies like GE, Dupont, Caterpillar and the other big cap industrials that have not fully sold off their real production assets.
It's just asset inflation via Mexico style. There is a lot going on behind the scenes abusing this fraudulent financial system that is only going to make sure this market cannot go down too far.
Also, do not forget the big banks who are becoming a bigger and bigger portion of this market. These guys are the key orchestrators in the paper pushing game. Do you really think they are gonna let their own stock take a serious dive?
