It will. It always goes back up.
The problem is that regular people are the losers in the process.
The problem is that regular people are the losers in the process.
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My only observation is that somehow, the market always bounces back.
It's just how economics works.
What I mean to say is the no matter how many times the market crashes. Eventually, we still end up hitting the highest highs that the market has ever reached before--may take months or years, but it will happen. Investors know that.
When I say investors, I am referring to the ones that they care about, the top dollar venture capitalist, millionaire/billionaire types.
They've made their fortunes on economic downturns. Buying low, selling high.
Regular folks need better security than market-based retirement funds.
The uncertainty is a knock-on bad effect that all by itself will drag things lower.
The alternative is the end of the stock market, which is not happening.
We've been under worse conditions than now. I won't exaggerate that fact.
The other truth is that this will all be horrible for consumers in the meantime.
Without money, they lose their power.
They will not sit back and watch all of their investments/financial security get vaporized by a [currently] term-limited leader, especially with big donors on their backs.
His life is in other people's hands.
He is not able to protect himself from powerful people with even more money than himself.
If they all want him gone, it'll happen.
There are dark forces in this country. He needs to tread lightly with them.
Global capital is leaving the US economy.
Shipping was restricted.
Supply chains were choked.
This will be awful, but the facts are that the market always finds a way to recover. If it could fail forever, it would have done so during and after the great depression.
The point being made in the original post was referencing Trump taking an unearned victory lap in the even of a quick 6-month rebound.
6 months was just an arbitrary number, meant for effect, not for the sake of argumentation.
The market is not reacting to a global factor (Covid) It's reacting to a localized chaos factor.
Global capital is fleeing US mkts until or if it starts to make rational sense again.