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Sourthern WI | So I totally respect the "don't fight the fed" argument. The money needed to go somewhere and I believe their printing has led to elevated equity prices. HOWEVER, in all my reading I have yet to see any compelling argument or any argument at all that the money absolutely needs to stay in the market. If you are a bank holding money printed from the Fed and have it currently in the market, if the market takes a turn south, wouldn't you pull that money out? I think until the Fed directly purchases equities, there is not guarantee that market values will remain elevated. My fear is the "don't fight the fed" argument is providing people with a false sense security. I welcome any evidence that would demonstrate the contrary.
I try not to fall too far into conspiracy theory, but two thoughts have been rolling around in my head. One is that yes, stocks will remain pumped up until the election to give DJT a boost. What happens afterwards is a total toss up. I honestly wouldn't put it past this administration to be the kid who loses, kicks the board game, and runs away. So who knows what devastation will be caused in the 3 months after the election if DJT loses.
The other thought I've had is that this election isn't about 2020 for the Republicans, it's actually about setting the stage for 2024. I tend to believe there are a number of Republicans who recognize the magnitude of what is/is not happening with the current administration. An additional 4 years of this could result in devastation to the party so they need to somehow hit the reset button and start building a comeback for 2024. If the only card DJT is left holding is the stock market, are they going to try and demolish the one advantage he still has left? Between a devastated stock market and unprecedented debt, they would also be leaving Biden with such a mess that he wouldn't be able to claw back out of it before 2024.
Regardless, nothing we can do about it so trade accordingly! | |
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Tesla to 2000
