US financial stocks closed at the highest level in nearly 10 years on Tuesday as hopes for deregulation of banks grow and investors ditch technology stocks for the previously unloved banking sector. Shares of some of the country's largest lenders, including Citigroup, Bank of America and JPMorgan, climbed more than 1 per cent on Tuesday, pushing the S&P 500 financial index to 419.54 – a level it last touched in December 2007 before the financial crisis had fully taken hold.
Need I say more about the absurdity of this? This valuation is based on Trump and a world economic model that's failing.
Is anyone surprised as a result that to the extent that it's possible my pension savings have no exposure to stock exchanges? I hope not.
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Speaking of pensions. How does one get a pension plan that isn’t exposed to the stock market? It appears to me that they pretty much all are, and I find this worrying.
If you are in an employer plan you will be
Being in such a scheme is a new experience for me
I was self employed for 33 years
It’s absurd. Shows why the wisdom of the market is no such thing, transfering capital out of a productive sector into a non productive one. But then again share prices have no bearing on human or even company progress as after an IPO or stock split share trading has nothing to do with raising capital for production and research, just the greed and wealth of investors and executives of the company.
Indeed there was a right wing neoliberal economist on the Today program extolling the virtues of Trump and hoping for a 3:1 cutting of red tape as opposed to 2:1. Can say I feel hopeful. On another depressing point prof Michael Dougan has posted another video available here: http://www.progressivepulse.org/brexit/project-fear-to-project-reality-prof-michael-dougan-one-year-on-from-eu-referendum/ it is easily his most damning yet of the entire Brexit debacle.
Well, its a QE inflated bubble Candidate Trump said it [the stock market] was a big fat ugly bubble.
President Trump, on the other hand, is taking credit for this rise in the stock market.
When will it pop; who knows but the ride up been great. However, the time to cash-in is fast approaching.
I guess the only way to anwer this is to ask: what would you have to be thinking, in order to view this as an advantageous investment decision?
What would you have to be?
You would, of course, be rich: the World’s markets are no longer dominated by funds and institutions managing the wealth (mostly, the pensions) of the middle classes.
You could, of course, be wrong. Or stupid: given how much of the world’s wealth is inherited, there’s some merit in that argument.
But most wealth is managed by professionals, and they are individually quite clever (albeit monumentally stupid in aggregate).
So the answers lie in their incentives, which can mostly be summarised as: ‘Beat the hurdle rate this year and bank the bonuses’ and ‘Yes, we know there is a correction on the way; and it will hurl me out of this office, doomed to spend my remaining years on Earth spending my bonuses’.
Look at it another way : Cash was King. Now Stocks are.
For now it seems owning a portion of a productive asset appears more attractive than bits of paper issued by FIAT. And the derivatives could be legion, if not already.