Author

Topic: Will the current rally in US stock market help it’s economy in the long run?. (Read 574 times)

legendary
Activity: 2254
Merit: 2253
From Zero to 2 times Self-Made Legendary
Can you trust a man like this ?

Trump is narcissism and megalomania. Especially ahead of the November presidential elections, of course, there will be political and social escalation due to friction of interests and strategies between the parties concerned. Because he wanted to be the commander in chief for the second period, Trump's burden was more important because it was easier to maintain than seize.

Trump is now under attack by many parties. Domestically, he is dealing with the Democrat Party and globalist groups abroad, he is dealing with China. Trump and the republican group are supported by weapons contractors and oil companies. nationalist + oligarchy in the oil and weapons business so that the solution is always confrontational and cowboy style, change regimes & war, according to his expertise plus Trump who is an economic man, they are experts in conducting economic at war.

I'm not a Trump supporter, it's just that I think the other presidents aren't necessarily brilliant in inhibiting the coronavirus and mitigating the effects of the pandemic. Corona is something out of control.

Quote
Agreed , the time is unfortunate Sad
Jobs are none
Market is dying
Stock market might show ups and down but it does not change the real value of the market right now .
We will need years to solve this crisis.

The market is indeed full of speculators more than entrepreneurs who actually seek capital for production. the market can never represent real economic conditions. The question is When will the government begin to resolve the crisis? Whether waiting for a pandemic clean or starting from now. In my mind that is not an American, that Americans can feel calm because America can print as many dollars as they want so that health budged will always be fulfilled.

In third world countries, many governments have run out of budget and difficulties are also seeking loans to overcome the pandemic. So despite the unsafe conditions with economic considerations, many governments open quarantine and lockdown. In my country, there is someone who initiated equity crowdfunding and opened a stock market for micro and medium enterprises so that it can accelerate economic recovery after the pandemic.
legendary
Activity: 2730
Merit: 1288
It seems S&P 500 will reach new ATH this week. Over the ATH in mid February. It just looks so unreal to me. With number of daily infected increasing day by day. With civil unrest all over world that can turn into real shitty pandemic. It is just unreal. It seems they really believe in unlimited printing of fiat.
hero member
Activity: 1890
Merit: 831
One should understand US in now way is in the right state. When we are talking about economy coming back stronger and stuff one should remember that they have lost a lot and trust me the value is plummeting a lot.

Trump is always lying about the economic value because he wants to state how he did not fail as a president.

Plus * Trump was involved in Child trafficking * 
 https://www.india.com/viral/anonymous-hacktivists-return-after-george-floyd-murder-expose-files-on-donald-trumps-child-trafficking-princess-dianas-alleged-killing-4047847/

Can you trust a man like this ?

This is most unfortunate turn of events . It will take years to make sure that the American economy is on the right track and till then one should just ignore this individual. He has no right to be the president.

It is scary to think about how horrible the economy actually is because millions of people are literally starving because of unemployment+underwaged and people working double shifts or two different jobs if they can just to survive, whereas companies are showing great returns on their stocks.

What do we really consider "economy" anymore, just because hundreds of companies came up and said that their stocks are on the rise, does that mean the economy is doing well? Is that really the only indicator we need? I feel like companies could be doing better but that doesn't translate to economy being good in general, not for the regular people at least.

People who wake up, go to work, come home, watch netflix, go to sleep and do the same things every day are having hard time, and those are over 100 million people, probably over 200 million, when that many people have hard time, how could we say anything by just looking at the stocks.

Agreed , the time is unfortunate Sad
Jobs are none
Market is dying
Stock market might show ups and down but it does not change the real value of the market right now .
We will need years to solve this crisis.
legendary
Activity: 2884
Merit: 1117
It is scary to think about how horrible the economy actually is because millions of people are literally starving because of unemployment+underwaged and people working double shifts or two different jobs if they can just to survive, whereas companies are showing great returns on their stocks.

What do we really consider "economy" anymore, just because hundreds of companies came up and said that their stocks are on the rise, does that mean the economy is doing well? Is that really the only indicator we need? I feel like companies could be doing better but that doesn't translate to economy being good in general, not for the regular people at least.

People who wake up, go to work, come home, watch netflix, go to sleep and do the same things every day are having hard time, and those are over 100 million people, probably over 200 million, when that many people have hard time, how could we say anything by just looking at the stocks.
legendary
Activity: 3024
Merit: 2148
If this stock market rally will manage to prevent further crash, it would at least reduce potential unepmloyment and other negative effects. But, like many other posters said, the stock market isn't a perfect representation of the economy. Especially since it ignores the small businesses, which probably got hit by the coronavirus the hardest, as they didn't get help from the government on the same level as these megacorporations did.
sr. member
Activity: 1624
Merit: 315
Leading Crypto Sports Betting & Casino Platform
Bull run on the stocks market is always better than dump. It can attract more investors in the company. I think that right now this rally is good.
The bull run sure is a good thing but if you look at the bigger picture, this protest will cause a dump in the prices of certain market listed on the stock market, in my opinion the riots will help people get in stock market with the current prices of some stocks, this might look twisted but in my opinion, the riots will die down eventually as the government are continuing to create the solution for the current issue, that is my two cents in the story and I am welcome to opinion and disagreement with my opinion.
full member
Activity: 1484
Merit: 136
★Bitvest.io★ Play Plinko or Invest!
As you can see there are a lot of rally happening right now in the US not only in the US also into the other part of the world because this is starting to raise about the Black lives matter and some of the people are going to stole and loot a lot of things around the city and some of the people getting damage too and this is not good at the economy of the country because it causes a lot of damage also a lot of loss and the looters get it free at the same time it affects the stocks they cannot get any income the number of unemployed right now increases because they are afraid getting hurt and included as a suspected protest.

Bull run on the stocks market is always better than dump. It can attract more investors in the company. I think that right now this rally is good.

Most of the company does not want to open nor make a transport and make another stock because of the looters and it is better to avoid this action than loss a lot of money so there is a chance to hits a double down to the stock market.
jr. member
Activity: 129
Merit: 1
Bull run on the stocks market is always better than dump. It can attract more investors in the company. I think that right now this rally is good.
full member
Activity: 1442
Merit: 153
★Bitvest.io★ Play Plinko or Invest!
Well, American economy could never return to normal, not the way it was designed so it will always be volatile once in a while and go down. Why? Because companies are using stocks like a threat over every single politician, they could literally dump all their shares and make it worthless and american people will lose billions of dollars overnight which would be horrible for everyone in the world so that politicians are aware of this fact and bail out all companies all the time.
with the down stock market, I'm pretty sure these people won't just be too rude to get out of there and buy something else. And I doubt they would let their country be in a economic collapse, especially if they are living there coz they know what it would be even they have the money to buy. Just take a look at riot and protests, stores are closed, money is powerless right now in the streets, literally.

What that means is, any company could do whatever they want, literally never stop doing whatever they are doing and in return they will be capable of getting bailed out if they somehow fail to calculate something. So the economy will recover now, for a while it will be cool, but after a while it will start to crash once more.
The american economy is designed to cope for maybe a half of what is happening in their states now, I doubt they are prepared to deal things happening on their country now. Though they economic growth is expected to lessen year by year due to the trade war, and China? you know what it is for China
legendary
Activity: 2996
Merit: 1132
Leading Crypto Sports Betting & Casino Platform
Well, American economy could never return to normal, not the way it was designed so it will always be volatile once in a while and go down. Why? Because companies are using stocks like a threat over every single politician, they could literally dump all their shares and make it worthless and american people will lose billions of dollars overnight which would be horrible for everyone in the world so that politicians are aware of this fact and bail out all companies all the time.

What that means is, any company could do whatever they want, literally never stop doing whatever they are doing and in return they will be capable of getting bailed out if they somehow fail to calculate something. So the economy will recover now, for a while it will be cool, but after a while it will start to crash once more.
hero member
Activity: 3038
Merit: 634
Recently, many US stocks are soaring high and I've just noticed it when some of the people out of nowhere through social media shared their gains. The platform they use is etoro and they're happy looking to those massive gains that they're boasting of like the American Airlines.

Once most parts of US goes back in normal, this will signify that the economy is going back to normal again. I'm not expert on their economy but a lot of things are happening there and the effect cannot be seen for now, who knows after a month or two.
legendary
Activity: 1652
Merit: 1483
I am not entirely sure about the 40 million people losing their job part.

the number is based on initial unemployment claims since the pandemic/lockdowns started: https://www.washingtonpost.com/business/2020/05/28/unemployment-claims-coronavirus/

presumably some of those people have returned to work since initially filing.

the official unemployment rate actually dropped in may with 2.5 million jobs added, a great surprise to many. the jobs data was published rather deceptively though. the labor dept said the official unemployment rate dropped to 13.3% but in the fine print:

Quote
The Labor Department cautioned that data-collection issues that have plagued the agency throughout the crisis continued last month. Some temporarily jobless workers were characterized as “employed” in May; had they been counted correctly, the department said, the unemployment rate would have topped 16 percent.

so the real unemployment rate was over 16%. https://www.nytimes.com/2020/06/05/business/economy/jobs-report.html

the dow and s&p500 surged on the news that the unemployment rate dropped. i still think it's premature to celebrate. it's obvious payrolls have been propped up by the bailout loan program. as those loans get phased out, we'll see how sustainable the recovery really is.
legendary
Activity: 3654
Merit: 1165
www.Crypto.Games: Multiple coins, multiple games
I am not entirely sure about the 40 million people losing their job part. I don't know if it is a proven fact, because if it is, that is very very scary. Don't get me wrong I hate Trump as much as the next guy but honestly 40 million looks a bit more mainstream media exaggeration, but that is just my idea, of course it could be very true.

In case it is true, that 40 million probably had people who wouldn't vote for any candidate at all that switched to Biden or even maybe some Trump supporter moving to either not voting or even Biden. Now the things that will happen depending on the elections, if Trump wins the economy will "look" better in stats but the regular people will be going worse, if Biden wins it will suck for a while when he is trying to recover the mess Trump leaves, but long term it will be better.
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
Donald Trump has to say that, because the US are being burnt down around him. It is pure election talk and nothing more....   You have to put yourself in his shoes... 1. The Covid crisis under his administration has been one big joke... 2. The job losses is a direct result of the poor manner in which this crisis was handled.... 3. The George Floyed thing and his hard handed response to the riots are not counting in his favour now.  Roll Eyes

So what do you in his shoes... well, tell the people that everything will be fine and the US economy will bounce back. Now, tention between China are escalating and the trade wars was a fiasco.  Tongue
legendary
Activity: 2268
Merit: 16328
Fully fledged Merit Cycler - Golden Feather 22-23
Do you think Stock market if rallying because today's good emplyoment figures?

Wrong.

Look here: look how much money has been printed:

G4 CB's assets in USD. FED is leading the pack, followed by ECB
member
Activity: 1204
Merit: 38
I feel like this is the short term surge created to keep their economy alive just because of the president election but in long run they are going to take hit like all other countries, especially the middle class people who already lost their jobs in millions.
legendary
Activity: 2730
Merit: 1288
Will the current rally in US stock market help it’s economy in the long run?.

It is simply insane that Dow Jones is less then 10% under its peak. And even when the peak happened everyone was saying it is a balloon full of hot air. Rally on stock market for sure helps Economy. Until the point when it crash. Then will fun time start.
hero member
Activity: 3150
Merit: 937
The conclusion that some stock market rally(that might be short term) will lead to a fast economic recovery is partially wrong.The stock market was pumped by the Federal reserve system's never ending money printing,quantitative easing,low interest rates,etc...The 'easy money' policy pumped the stock markets,even though the unemployment is at a historical peak.The correlation between that real economy and the "financial economy" of the banks and Wall Street is more or less broken,so we can't predict the future of the economy based on what's happening on Wall Street.
legendary
Activity: 2254
Merit: 2253
From Zero to 2 times Self-Made Legendary
The rally of the past few days is caused by the sentiment of economic recovery welcoming the reopening of the economy (Anything we can do to start coming out of an economic recession will cause the market to react positively). The rally was also triggered by optimism about the discovery of vaccines which became the ultimate weapon in the fight against the coronavirus pandemic.

Global economic conditions are still uncertain. Covid-19 has an impact on the real sector and will be transmitted to the financial sector, just how the government conducts policies for mitigation so that the impact is not too deep.

The money market as a place of demand and supply of funds and important documents traded in the short term which is certainly prone to speculation and identical to where speculators seek profit even though some use it for capital certainty. So this sector can not sustain the real sector at all even more often cause problems for the real sector.
legendary
Activity: 2114
Merit: 2248
Playgram - The Telegram Casino
The message could just be a strategy to increase confidence and optimism around the economy. The U.S. election is only a few months away, and the president is reluctant to admit the extent of the current economic crisis in the nation.
The pandemic is still spreading and the numbers increasing, this would further dampen the economy and slow the recovery process, more people would likely become unemployed (temporarily or permanently), more businesses would shut down, and spending will get slower.

Almost all indicators are not looking good and the one that is, is being put in lights. We would likely see more campaign strategies like this in the coming months.
hero member
Activity: 2702
Merit: 672
I don't request loans~
Doesn't necessarily mean that it would happen though, and I doubt many would actually believe it. It's more like them putting assurance to the heart of the masses temporarily, but that's it. Without any results, they'd probably suffer the repercussions of what they said, and by 2021 at that. Let's not even mention how the current pandemic accelerated the downfall of the US economy. In all honesty, if the US doesn't move properly, they might get shoved off of their throne as a top country.

Additionally, you can also plainly see that the words of Trump are for the masses. I doubt those rich guys would actually believe what Trump is saying right now, and instead would probably think how they can increase their riches much more than what it is right now.
full member
Activity: 2142
Merit: 183
Apparently Trump is simply hoping to print again enough dollars and thus boost the US economy. If other states do the same, then a global economic crisis will be inevitable. Due to unprecedented measures to combat the spread of coronavirus, the global economy is now very weak and it will take more time to restore it than one year. This should take about three years. In addition, the coronavirus is still not completely defeated, and it is too early to talk about the timing of the restoration of markets and state economies.
legendary
Activity: 2576
Merit: 1860
For sure, the majority of the Americans will not agree.

All these talks of rallying stock market, improving US economy which is primarily measured by its GDP, and so on are nauseating to say the least.

High figures in relation to these claims do not mean anything at all. These are all hollow numbers as far as the real day-to-day life of a jobless father and mother moving heaven and earth just to put food on the table.

legendary
Activity: 2352
Merit: 6089
bitcoindata.science
It is not the stock market that help the economy, it is the other way around.

Analysts believe that the economy will recover next year, this is why they are getting stocks now, as that recovered (next year) is already priced in. Simple as that Wink
legendary
Activity: 2828
Merit: 1515
The stock market can be a prediction of what's to come and it can be based on speculation, I don't think it's all that great of a metric to measure the economy in the long run. We already have the job loss numbers and GDP numbers which indicate a recovery is going to take nearly 10 years.

The stock market is probably people just buying low knowing that it's going to recover at some point, this doesn't mean the economic turmoil isn't going to last far beyond than that the stock market might "predict".
legendary
Activity: 1652
Merit: 1483
it certainly doesn't help in any direct way.

the only way it helps IMO is psychologically. it could make people more optimistic about an economic recovery. that could mean improved consumer confidence, which in turn could stimulate spending that is so badly needed by businesses.

investors are just betting on a strong economic recovery. that doesn't guarantee they'll actually get one.

Stock markets are only one facet of the economy while the rest is mainly from taxes which the working class contributes heavily to, and with some 40 million Americans currently unemployed, how would a bounce back in September be possible? I'm not a pessimist but all points signal south of what Trump likes to make it look like.

+1. he looks very out of touch when he celebrates the stock market while remaining silent on insane unemployment levels.
legendary
Activity: 2590
Merit: 3015
Welt Am Draht
There've long been two economies - the one you see on trading screens where money is magicked up out of nowhere and winds up in the right pockets, and then you have the day to day reality for the millions of little people slowly getting worse off by the week.

I presume the divide will grow ever starker. They'll throw crumbs at the real people but concentrate on keeping those plates spinning at the top. The only thing that'll change that is how vocal the peons become about it and we're seeing the responses they're willing to throw at that right now.
legendary
Activity: 3542
Merit: 1352
Cashback 15%
The POTUS is continuously drawing lines on the sand and not addressing the domestic problems his country is facing currently. That's very un-gentlemanly, and un-Presidently if you ask me, but what do you really expect from someone who runs his mouth first before checking at the facts. Stock markets are only one facet of the economy while the rest is mainly from taxes which the working class contributes heavily to, and with some 40 million Americans currently unemployed, how would a bounce back in September be possible? I'm not a pessimist but all points signal south of what Trump likes to make it look like.
full member
Activity: 1442
Merit: 153
★Bitvest.io★ Play Plinko or Invest!
To assume the date of the recovery is difficult to analyze now because the pandemic is still in effect to the world. Besides, it won't take that very long for the America to recover their losses, I'm pretty sure they already have come up to a solution for this threatening situation. But let's say the pandemic will end before December, within this year, I feel like they'd be more than recover before the 2022, for me it would take at least a year to fully recover.

I interpret the rally on the USA stock market as a hope, it is more of taking advantage of low prices thinking that it will increase in later years.

Nah, don't believe on Trump, he must be thinking of pure good things now coz you know what's happening in the america right now.
sr. member
Activity: 2366
Merit: 332
A problem is solved if you identity it. The problem in the US economy at the moment is that millions jobs have been lost , so it won't be much of a problem anymore. US is making new money available already. I think what Trump could be looking at is to make money available to industries as stimulus. If the manufacturing sector go back fully, the economy will have a boost. So I think it is still possible that the economy will come back and with election around the corner, Trump is likely to fast track things.
hero member
Activity: 2646
Merit: 686
I’m not so sure if we will witness more bull rallies in the US stock market this year, but apparently Trump believes that more such rallies will come this year, and he even claims that this is the proof that US economy is already improving.

Furthermore he also states that US economy will continue to rebound by September, and it’ll completely rise by 2021, but many people do not agree with his analysis as they claim that 40 million US citizens have already lost their jobs, and hence it won’t be so easy to revive the economy by 2021.

What are your analysis on this, do you’ll agree with his thoughts or do you’ll too feel that the US economy cannot be revived by 2021.

Quote

"I feel more and more confident that our economy is in the early stages of coming back very strong," he tweeted. "Not everyone agrees with me, but I have little doubt."

"Watch for September, October, November," Trump continued. "Next year will be one of the best ever, and look at the Stock Market NOW!"


Source:

https://markets.businessinsider.com/news/stocks/trump-cheers-stock-rally-us-economy-coming-back-very-strong-2020-6-1029279666

Jump to:
© 2020, Bitcointalksearch.org