OK, stock markets are full of optimistic folk spending money where they think it will make money for them. I get that. It’s a “leading indicator” of how the economy and various businesses might do in the future.
However, we are in a situation where the US stock markets are expressing extreme greed by investors while USA is
- in the midst of a pandemic and not doing well,
- in the midst of political upheaval with ~33% of the population seeking violent overthrow of government, and
- the National Guard is being mobilized to squelch an uncivil war.
I just don’t get it. How can anyone be optimistic in this situation? I saw bad things coming years ago and got out of US stock markets. I did well as a result. It seems to me US GDP will be sluggish for at least a year, maybe two and many small businesses are ruined, homelessness and hunger stalk the land, the national debt is exploding and USA still has no national health insurance. USA has regressed to a 1960s kind of economy before everything happened to modernization: women at work, automobiles being cranked out at home, clerical work was in great demand, etc. Now the rich are getting richer while the poor are getting desperate. I can see crime spiking. I can see political instability for decades to come. If millions are this angry over Trump losing an election, how angry are they going to be when Biden undoes 99% of Trump’s “accomplishments” and Trump et al rot in prison? What are GOP members of government going to do for two years after they voted to suspend the constitution and elect the loser of an election? How is the DOJ going to dispense justice in crimes in which the DOJ was complicit and 33% of jurors think criminals are unfairly treated? Whence cometh this optimism in the markets?
It seems to me this is a bubble soon to burst. The Ds and Rs are never going to agree on how to fix anything. They can’t even agree on how to get rid of Trump, let alone Trumpism. I’m glad I live in Canada where we have problems but we can fix them. Not so in USA.