29 thoughts on “What’s the difference between the stock market and the economy? Let’s get into it! #stocks #economy”
The stock market is a self-licking ice cream cone in that at this point it's the default recipient of the bulk of savings, particularly retirement. It doesn't respond much to the rest of the economy because much of the inflow is guaranteed. What you said about missing out on the economy's growth by not saving (for whatever reason) is the key. It's created a "have" and "have not" population. Those who save are the haves. My family never had wealth as a priority. We were military for 30+ years and knew we had a good pension coming. Yet early on we we resolved never to be in debt. Our parents raised us that way. We started college funds for the kids, a house fund, and a "next car" fund. We invested those "buy and hold" and made all purchases – including our retirement home – cash on the barrel head. The upshot is that we can easily live on the military pension, but if it went away we'd still be more than fine. We know well that we're lucky. But otoh, we know other military families in the same boat for pay, expenses, etc. who were swimming in debt at retirement time. I can't even figure out how they did it.
I think it’s important to see that neither the stock market nor the economy is a measure of the economic wellbeing of most of the populace. Of course, it could be possible that there could be a country that has a small wealth gap, but it’s unlikely. Any case, humans are actually not wired to naturally see the big picture, and that has sometimes forced leaders to concentrate their message on the wrong things. Of course we need to pay attention to jobs and such but paying attention to the wealth cap all along the way might’ve made some differences. I’m 72 and I’ve been reading about the discrepancy between the poor and the rich in the United States since the late 60s. But the gap is even wider now.
Most stocks are tied to profits. So if we stop spending so much. And maybe we can show a loss and tge stocks will dip. And the corporations will get scared and tell the politicians.
The idiots who quit their jobs during the plandemic are still unemployed. They had a fantasy that the dumb hiring practices pre 2020 were going to continue forever.
The stock market is a self-licking ice cream cone in that at this point it's the default recipient of the bulk of savings, particularly retirement. It doesn't respond much to the rest of the economy because much of the inflow is guaranteed. What you said about missing out on the economy's growth by not saving (for whatever reason) is the key. It's created a "have" and "have not" population. Those who save are the haves. My family never had wealth as a priority. We were military for 30+ years and knew we had a good pension coming. Yet early on we we resolved never to be in debt. Our parents raised us that way. We started college funds for the kids, a house fund, and a "next car" fund. We invested those "buy and hold" and made all purchases – including our retirement home – cash on the barrel head. The upshot is that we can easily live on the military pension, but if it went away we'd still be more than fine. We know well that we're lucky. But otoh, we know other military families in the same boat for pay, expenses, etc. who were swimming in debt at retirement time. I can't even figure out how they did it.
Tax the rich.
I think it’s important to see that neither the stock market nor the economy is a measure of the economic wellbeing of most of the populace. Of course, it could be possible that there could be a country that has a small wealth gap, but it’s unlikely. Any case, humans are actually not wired to naturally see the big picture, and that has sometimes forced leaders to concentrate their message on the wrong things. Of course we need to pay attention to jobs and such but paying attention to the wealth cap all along the way might’ve made some differences. I’m 72 and I’ve been reading about the discrepancy between the poor and the rich in the United States since the late 60s. But the gap is even wider now.
Economy = the game on the field.
Stock market = the betting odds about the next quarter.
Most stocks are tied to profits. So if we stop spending so much. And maybe we can show a loss and tge stocks will dip. And the corporations will get scared and tell the politicians.
The idiots who quit their jobs during the plandemic are still unemployed. They had a fantasy that the dumb hiring practices pre 2020 were going to continue forever.
You're really cool for sharing and not Gatekeeping this info
So what's your point
The stock market continues to pump because millions of pension funds, 401ks roths are all funneled into the same holdings month to month