John Maynard Keynes, described in his “General Theory of Employment, Interest, and Money," animal spirits as the human emotions that affect consumer confidence.
Despite our animal spirits, Covid-19 has an animal spirit all of its own. COVID-19 is literally “going viral.”
The human race is doing a great job of reducing the death toll. But that will not stop people avoiding the potential risk. We are heading for a dark winter, and entire industries will be bankrupt.
How long can the technology and health sectors prop up this economy, when the average person cannot buy an iPhone or afford healthcare?
Every business leader I speak to, sees a bleak winter, cutbacks and redundancies.
"How long can the technology and health sectors prop up this economy, when the average person cannot buy an iPhone or afford healthcare?"
This is exactly why we must crash. Not enough consumer dollars to buy all the new innovations bestowed by technology let alone pay for basic necessities as businesses cover their own asses and hang workers out to dry.
One-World
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@ProfitHarvest, I was thinking this way, but once in a while I also see that people who cannot afford healthcare and are unemployed are not investing. The market price only reflects investors' activities so far. So even if there were only 10 investors left in the world, the market would still go up if these 10 guys kept buying and pushing.... no?
liberatedstocktrader
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@piscitear, Nice idea, but when there is no one to buy the product, and the earnings drop?
One-World
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@liberatedstocktrader, glad to see your response, yeah, Q3 thru Q4 won't be better than the previous year. Really hope the market matches reality, or at least makes more sense. Disney laid off a lot of folks and stock went up again last week. I've also seen earning expectations in some companies turned lower so that their actual earnings beat expectations. Some people can always found a reason to make the market higher, I personally will just stay quiet and wait. If the market truly makes sense and foresees our economy recovery, k, I'd be happy to see but I'm not smart enough yet to tell this crazy thing now.
liberatedstocktrader
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@piscitear, A wise move, this bull has Bovine spongiform encephalopathy (BSE)
BoneFunkenstein
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@ProfitHarvest, I believe the opposite will happen, the normal investor will be priced out of the market as the money finds a new home to land on. We are looking at a 20x market from here
MystryBox
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Crazy market near all time highs while so much of the everyday economy is floundering with record drops in employment, record increases in businesses closures, etc. Will bad news be good news forever?
ProfitHarvest
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COVID ETF lol... would be a great investment right now for sure.
This is exactly why we must crash. Not enough consumer dollars to buy all the new innovations bestowed by technology let alone pay for basic necessities as businesses cover their own asses and hang workers out to dry.