Bidumbnomics

[Terrel L. Shields]

The disconnect between the economy and the stock market has never been more obvious than this week. The stock market took off again like the economy was flying low and up and up, rather than staggered. Rate hikes may be in the offing as much as a rate rollback. What will cause the stock market to tank? Apparently, nothing? It seems logical to me that the stock market should be trending down along with the economy. Or is it that people are throwing caution to the wind in an effort to overcome the inflation that is eroding their savings by taking savings into ever riskier assets? I have gone full conservative with my portfolio with only about 10% in the stock market and the rest in fixed income. Even medium risk is not appealing to me in this market, but at some point inflation can be so damaging you may have to take more risk despite your age.

 

[Charles West]

The disconnect between the economy and the stock market has never been more obvious than this week. The stock market took off again like the economy was flying low and up and up, rather than staggered. Rate hikes may be in the offing as much as a rate rollback. What will cause the stock market to tank? Apparently, nothing? It seems logical to me that the stock market should be trending down along with the economy. Or is it that people are throwing caution to the wind in an effort to overcome the inflation that is eroding their savings by taking savings into ever riskier assets? I have gone full conservative with my portfolio with only about 10% in the stock market and the rest in fixed income. Even medium risk is not appealing to me in this market, but at some point inflation can be so damaging you may have to take more risk despite your age.

The market is trading on fear that we are entering a period of stagflation while simultaneouly riding a wave of anticipatory massive gains in productivity from AI. Both are happening simultaneously.

 

[Terrel L. Shields]

I think it does not matter who is elected in November. They will be blamed for the failure if we go into another 70s stagnation state. In the 70s, the baby boomers were looking for work as an economy was slowed by high oil prices when OPEC and not oil companies controlled the price (People forget that cheap oil was a boon to oil companies, not expensive oil.) Today with the country flooded with immigrants we have a similar problem - more newcomers to the jobs market than jobs to support them, a sure fire recipe for higher prices and higher unemployment. Stagflation at its finest.

 

[OSU Beavers]

 

[OSU Beavers]

 

[OSU Beavers]

 

[Elliott]

Bidenomics produces this amazing distortion and why young borrowers can't buy a home:

 

[Fernando]

With gas prices over $5/gallon here, for a Saturday today, there were many traffic on freeways.
Going to Napa had traffic (maybe early morning weekenders?).
And there was traffic heading to the Bay Bridge to San Francisco.
Despite politicians messing things up, San Francisco is still a beautiful place surrounded by water.

 

[Elliott]

And rates continue to go up and up:

 

[Terrel L. Shields]