Most of us have heard stock market experts pointing one way or another...up or down. Recently we've been inundated with with experts saying they really don't know what is going on.
The problem is this. What is happening doesn't really happen very often. The Government is increasing the money supply in massive amounts to keep the economy going. Our dollars become worth...less. Holding onto cash causes one to lose value in the money they have in cash or in the bank at very low interest.
Unemployment and less economic activity normally is deflationary....your non cash assets decrease in value. This typically causes people to leave the stock market as the stock levels should decrease. Instead, the fear of inflation is causing people to invest in stocks to keep the value of their money up.
This is why the economy is struggling and stocks are going up. This is not indicative of a healthy economy. The situation is saying that people have little faith in the US dollar and utlimately the US economy. This is a massive disconnect from time proven normalcy. Eventually something in the marketplace will need to be correct through a stronger dollar/US economy, or a return to normal stock levels for the economic situation.
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