Dow surges above 30,000 for the first time as investors cheer transition to Biden administration | Markets Insider
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Mario Tama / Getty Images US equities gained on Tuesday as the General Services Administration's ascertainment of President-elect Joe Biden's ...

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  • TossedAccount [he/him]
    ·
    4 years ago

    Couple things worth noting:

    • Dow was within reach of 30K in February, shortly before covid crashed the economy.
    • As I mentioned elsewhere in this thread, Biden is a known quantity: he's expected to govern like Obama (stability at home and more imperial chaos abroad), and Wall Street did really well under Obama. Trump was unstable and unpredictable, which is bad for the capitalists' long-term planning.
    • Thanksgiving Black Friday is this week, and businesses generally do better during the holiday season. Part of this market optimism is seasonal.
    • Even weak EMH is generally untrue. Exponential growth is counterintuitive and resembles a sudden shock/discontinuity when the relevant order-of-magnitude threshold is crossed; chances are good markets haven't yet factored into their pricing that covid cases are going to skyrocket over the next few weeks at the current growth rate. This isn't because traders and businesses don't understand how exponential growth works - they must, or else they'd go broke - but because they're selling the rumor to the rubes who don't understand how it works to make more money from holiday spending and from a potential sell-off shortly before they expect the market to crash again.
      • ArmedHostage [none/use name]
        ·
        4 years ago

        Stocks are worthless if companies go bankrupt. Stocks get paid out last - if at all. Creditors first, then bonds, then stocks if there's anything left over. Zombie companies are on the rise, I'd be prepared for a bunch of large corporations to start going through bankruptcy sometime in the new year as retail sales will be shit for Christmas - meaning they won't be able to cover their debt obligations. People would switch from stocks to bonds even if it's negative because at least you'll get money from bankruptcy proceedings. Even in chapter 11 bankruptcy (as in not the one where they liquidate everything), stocks become worthless.

    • OhWell [he/him]
      1·
      4 years ago

      As I mentioned elsewhere in this thread, Biden is a known quantity: he’s expected to govern like Obama (stability at home and more imperial chaos abroad), and Wall Street did really well under Obama. Trump was unstable and unpredictable, which is bad for the capitalists’ long-term planning.

      Stock market grew like wildfire under Trump. Wall Street owes a lot to Obama bailing them out during the recession, which kept them afloat while the rest of America suffered the aftermaths of that recession that took years to get out of.

      • TossedAccount [he/him]
        ·
        4 years ago

        The stock market grew like wildfire under Trump, until covid erased that growth setting them back to where they were at the end of Obama.

        • OhWell [he/him]
          1·
          4 years ago

          Which is why Trump would've won re-election hands down without COVID.