S&P 500 SPX, -0.65% at 3,300, SPX 3,350, SPX 3500, do I hear Dow DJIA, -0.42% 31,500? Yes I am. The big driver of course is the prospect of the Federal Reserve and other central banks cutting interest rates again to save the global economy.
But not only are majority solution impossible to get, nobody even wants to even talk about them. Why? Because they involve pain. Voters don’t want to hear pain. Hence all you hear is free money. Tax cuts in 2016. Now we hear free college, health care and debt forgiveness for 2020 and, who knows, maybe more tax cuts.
Everybody talks about the outrage of the day; it’s a hyped-up atmosphere by design. Because the architects of the conversation know the truth, and that is that as long as people are distracted by outrage, fear, anger and emotion ,they will not think about how the system is actually utterly screwed. “Global central bankers are again in the driving seat when it comes to propping up the world economy, but many are demanding governments join them in the rescue effort.
Cause we really need stimulus as trillion-dollar companies such as Microsoft MSFT, -0.59% are going parabolic:
NorthmanTrader This is crazy. Supply & Demand actually works. Lowering taxes and reducing regulations stimulates GDP growth. The FED is figuring out that manipulation and superficial control of the economy isn’t required.
NorthmanTrader Well written!
NorthmanTrader Investors are acting insane too. Buying on good and bad news.
NorthmanTrader Nonsense. The economy’s biggest problem is Donald J Trump. Trade wars are causing a lot of collateral damage, some of which will take many years to recover from, if ever. Now, if the Fed lowers rates coming up soon, THAT would be insane.