Bears have been so wrong this whole rally. They are busy soothing their anti-America bias, and don't understand the basics of money flows or monetary principles in a credit-based system. They call for crashes based on feelings, every dip is going to be a crash, market narrowing is seen as risk. They start from their preconceived notion of how the market should behave and work backwards to explain why it is not behaving that way. Instead, they should concentrate on what is making it behave the way it is, and then work forward building out a theory.
In a pre-recession period like today, money creation and flow gets narrowed due to shrinking profitable places to employ your capital. Instead of hiring a new employee, or expanding your business with more products or equipment, for which to would need to take on more debt and service that debt, you instead put any extra money into savings/retirement. On a personal level that also includes home renovations, big ticket items, etc. In most cases, this will either go into a typical 60/40 split, and some will go to other safe haven assets like gold or bitcoin. Of what goes to the stock market as passive investment, it will be apportioned by market cap share. Therefore, the largest stocks will benefit most.
In this pre-recession period, the general trends will be higher narrower stock performance, higher bond prices, and higher bitcoin prices.
In a pre-recession period like today, money creation and flow gets narrowed due to shrinking profitable places to employ your capital. Instead of hiring a new employee, or expanding your business with more products or equipment, for which to would need to take on more debt and service that debt, you instead put any extra money into savings/retirement. On a personal level that also includes home renovations, big ticket items, etc. In most cases, this will either go into a typical 60/40 split, and some will go to other safe haven assets like gold or bitcoin. Of what goes to the stock market as passive investment, it will be apportioned by market cap share. Therefore, the largest stocks will benefit most.
In this pre-recession period, the general trends will be higher narrower stock performance, higher bond prices, and higher bitcoin prices.