The last time this happened, voters didn’t credit Bill Clinton. That may be a bad omen, or a good one.
If the stock market chose presidents, Joe Biden would be a shoo-in for reelection in 2024. The market rallied this month amid growing optimism about the economy, with the S&P 500 zooming 1.9 percent Tuesday on news that the consumer price index rose only 3.2 percent in October (compared to 3.7 percent in September). Stocks rallied again Wednesday on news that the producer price index fell 0.5 percent. Commentators are no longer debating whether the economy will experience a “soft landing” (i.e., a reduction in inflation without recession). The only question now is when it will arrive. The S&P 500 seems to have decided it’s already here.
But the stock market doesn’t choose presidents. Voters do, and polls continue to show they think the economy is in terrible shape. A Financial Times–Michigan Ross Nationwide Survey conducted November 2–7 is absolutely brutal on this point.
This is high-schooler thinking. Yeah rich people benefit more from the stock market and are more able to weather the dips, but the overall health of the economy is still closely coupled to the average person’s quality of life and employment opportunities.
The stock market is not the economy. Just because stocks have had a soft landing doesn’t mean that that’s translated to people’s lives experiences.
A company making higher profit has a higher stock price.
A company that can pay its workers less for what they produce will have higher profits.
Therefore the stock market is a measure of how effectively workers are being exploited.
Not true. It’s also a measure of how effectively customers are being gouged.
Both can be true…
Hence the “also”.
“that’s not true but it’s also true”
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The markets are reacting to what they think means the economy is making a soft landing. The fed was battling inflation, which usually means they press on the lever too hard and we have end up in a recession with high unemployment.
But we haven’t entered into a recession, employment is still very high and wages are currently out pacing inflation.
We still have catching up to do due to how much people fell behind during the period of high inflation, but this landing is way better than any other we’ve seen and certainly better for most people who may have otherwise been just unemployed rather than just struggling to stretch their current income.
What did you think a soft landing meant?
For the markets daily volume 90% is traded off market without affecting the price due to pfof and bs exemptions from market makers that allows them to very effectively naked short stock for “liquidity”. Couple that up with nearly every big firm using the Aladin algorithm and you can make the market do what ever you want granted a story is going which supports your narrative. I’ll believe we had a soft landing when equity swap data reporting is not getting continuously delayed hiding true market positions. Also don’t forget we have a plunge protection team who’s job is to short or buy stocks with taxpayer dollars to pretend the market is stable. Also don’t forget this started before covid.
Do you work in finance?
But what does this have to do with the rest of what I said? You seem to be arguing that the market is a reflection of the economy, just some secret market that no one knows about.
This is dumbass level name calling.
The rich have continually asked the middle and working class to surrender everything over the past 40 years in the name of “economy” and continue to rob them blind.
Wake the fuck up.
God will not reward you in the future for your pittance, even if his name is “economy”.
Most of us out here are one traffic accident or slip and fall from complete financial ruin and it’s absolute bullshit.
But according to the article, there’s no evidence that this means anything is wrong with the economy…
Wow. Someone actually bought the trickle down theory.
You just conflated the stock market and the overall health of the economy without so much as a hint of a logical step.
Next you’re gonna tell us that when the rich benefit the whole system benefits because the wealthy will recirculate their wealth back into the system
Like horses and sparrows.
Or some kind of liquid trickling down.
Hahahahahaha
sure, buddy, keep telling yourself that
Is this English?
Exactly. Your downvotes here only prove the financial illiteracy/intentional misinformation rampant across lemmy.
Not to mention that the average person should be putting their retirement savings mostly into mutual funds, so when the market goes up it should benefit the average person directly as well as indirectly.
And do you have any criticism for the rampant misinformation being spread by major politicial parties, for-profit media empires, exclusive schools and giant corporations the world over, as they promise “this time, neoliberalism is really going to work”, even as they stake their fortunes on it failing yet again?
Do you have anything relevant to the conversation to say, or just typical whataboutism?
Relevant username.
That is completely relevant to the conversation. If you can’t even manage a token “trickle down is bullshit” then we know the “knowledge” you’re about to bless us poor idiots with is just self-serving garbage.
The average person doesn’t have retirement savings dude, that’s the whole problem. 80% of the country lives paycheck to paycheck.
Mutual funds generally underperform the SP500 as a whole, as well as most broad-spectrum ETFs, and carry an expense ratio 5x higher than VG/Schwab ETFs just for fun. And that’s not even accounting for the class-A shares that a lot of financial advisors steer their retail clients into.
No, the “average” person should be putting whatever retirement money they can scrape together into index funds via Roth and/or traditional IRA, then regular retirement investments. But most “average” people can’t afford to even sock away 6 months’ worth of expenses in an emergency fund because healthcare costs and anything associated with raising kids has gone up a gazillion percent in the last 40 years while real wages have stayed stagnant.
Oh, also try buying a house while facing all of that AND student loans that Republicans are too pig-headed to let the government forgive even a fraction of.
“Financial illiteracy” isn’t the problem here, reality is.
You have savings?
Lmao
What the poors really need to do is hire better accountants!