Things to know about the stock market

[lchoro]

All of that is dwarfed by 15 trillion dollars in asset purchases in the last year. The last two times the market tried to pull back were due to the central bank's balance sheet being held flat for two months (August-October 2020) and the 1.9 trillion dollars in new debt authorized March 10. Both times were followed by an expansion of asset purchases or the Fed taking over the repo market. The Fed currently lends out over 500 billion dollars in T-bills because the debt markets no longer have the supply.

Financial TV never changes its storyline, except when there's fear and the medium is used to plead to the authorities for assistance. Do your homework. It's useless to crow about the magnificence of our business leaders when the plain fact is that they've had to be bailed out almost continuously. After financial markets recover, people lose sight of the fact that these bailout programs continue for an extended time, as much as 8 years in the last cycle.

[Sunbiz1]

Originally Posted by BeerGeek40

One of my favorite quotes and I've seen it on here many times.

The stock market can stay irrational longer than you can remain solvent.

It's irrational b/c it's based on emotion, rather than what it should be; logic/deductive reasoning.

[mathjak107]

Stocks only trade because of greed ,fear and perception of the future …there are no real knowns other than today so it is all driven by emotions one way or another .

One person thinks a stock is headed up so he buys ,another sells because he thinks it is headed down