Markets Are Down But That Doesn’t Mean The Economy Is

[Oddball]

I dumped some gold just for giggles.

But I've got plenty more, so. Meh...

Getting more silver on the dip.

 

[Natural Citizen]

...Gold increased a little today as people headed to metals and commodities for a safe haven.

Yeah it was a good time to dump a little bit.

 

[yidnar]

I hope you do not suffer too much.

Me and mine will be fine.

so you don't care about your fellow Americans eh Herpie Weasel ?

 

[Toddsterpatriot]

How do the markets ever go down? Millions of people have 401k's and IRA's that invest billions in the markets every week.

Millions of retirees pull billions out of the markets every week.

 

[Harpy Eagle]

so you don't care about your fellow Americans eh Herpie Weasel ?

They are not my responsibility.

 

[Oddball]

Gold will rebound....it was only down 1-2% today as some people had to sell in order to cover margin calls.

Edit:
I take that back....Gold increased a little today as people headed to metals and commodities for a safe haven.

Huh, WHA?

https://www.coinflation.com/

 

[yidnar]

They are not my responsibility.

if you vote for a Democrat they are ..

 

[Natural Citizen]

Getting more silver on the dip.

eeeyessir....

 

[Harpy Eagle]

if you vote for a Democrat they are ..

I do not vote for Dems.

 

[Natural Citizen]

Huh, WHA?

https://www.coinflation.com/

eyep...

A few days ago..

Gold price jumps above $2,470 as US yields plunge

Well, Actually, I guess you already knew that. Worth the post anyway, I guess.

 

[Flopper]

This is a very conservative Fed Board. There’re goal is not to prevent inflation or economic slowdowns but rather to control them to limit the damage they cause.

 

[Natural Citizen]

This is a very conservative Fed Board.

Relevant reading...

Republican platform ignores real causes of inflation​

There’re goal is not to prevent inflation or economic slowdowns but rather to control them to limit the damage they cause.

Snip from that piece illustrates that they achieve neither. That they are a primary contributor. The mechanism which technically drives inflation. Inflation defined properly as the expansion of the supply of currency and credit, of course.

''Politicians could not increase the national debt unless the Federal Reserve monetizes the debt by purchasing Treasury bonds and increasing the money supply to keep interest rates low. The need to monetize the debt is the main reason the central bank must keep interest rates from rising to anywhere near market levels. According to Manhattan Institute Senior Fellow Brian Riedl, every one percent increase in interest rates increases federal interest payments by 35 trillion dollars spread out over three decades.

It is no coincidence that the rise of the debt-based economy with ever-growing levels of consumer, business, and (especially) government debt — along with the accelerated decline of the dollar’s purchasing power, which reduces Americans’ standards of living — all occurred after President Nixon severed the last link between the dollar and gold. Yet, the Republican platform does not call for Congress to pass the Audit the Fed legislation, much less create a free market in money by legalizing competing currencies. Of course, the platform does not endorse ending the Fed’s ability to monetize federal debt by forbidding the Fed to purchase federal debt instruments.''

 

[JohnDB]

Yeah it was a good time to dump a little bit.

Well it's going to continue to climb. During recession/depression stocks languish but gold climbs....just saying I would have hung on for another quarter.

 

[Nobody911]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

Percentage of Americans Involved in the US Stock Markets

Based on the available information, it is estimated that over 50% of U.S. adults own stock. According to Gallup, 162 million Americans, or 62% of U.S. adults, own stock. This represents a 1% increase from 2023, and stock ownership has been on the rise in recent years, despite market volatility. Additionally, the Federal Reserve's Survey of Consumer Finances shows that 58% of U.S. families had some sort of exposure to the stock market in 2022, which is the highest level ever recorded by the survey. Furthermore, data from the Federal Reserve's Survey of Consumer Finances indicates that 53% of all U.S. families owned publicly traded stock in some form in 2019, which was up from 32% in 1989.

It's important to note that while a significant portion of the U.S. population is involved in the stock market, there are disparities in stock ownership. The wealthiest 10% of Americans own the vast majority of the US stock market, with the top 10% holding a record 93% of US equities, according to Federal Reserve data.

In summary, the available data suggests that a substantial percentage of Americans are involved in the US stock markets, with over 50% of U.S. adults owning stock.

==>My questions :

1. Did the richest 10% just cause the US markets to go down?

2. The new QE by Fed or cheap money is what the richest 10% want?

The richer, the greedier? Amen!

Sources:

How Many Americans Own Stock? More Than You Think | The Motley Fool

How many Americans own stock? 61% of American adults, or around 158 million people, own stock. But there's more to the story.

www.fool.com

A booming U.S. stock market doesn’t benefit all racial and ethnic groups equally

Nearly two-thirds of White families (66%) owned stocks directly or indirectly, compared with 39% of Black families and 28% of Hispanic families.

www.pewresearch.org

What percentage of Americans own stock?

In 2019, 53% of families were invested in the stock market. While publicly traded stock comprises 24% of the wealth of white, non-Hispanic families, it makes up 13% of Black wealth and 10% of Hispanic wealth.

usafacts.org

The wealthiest 10% of Americans own 93% of stocks even with market participation at a record high

America's richest have never owned so much of the country's stock market, according to Federal Reserve data.

finance.yahoo.com

 

[80zephyr]

Millions of retirees pull billions out of the markets every week.

It would be interesting to know the ratio. For instance, I am retired and I am not moving my money out.

 

[Toddsterpatriot]

Well it's going to continue to climb. During recession/depression stocks languish but gold climbs....just saying I would have hung on for another quarter.

Gold climbs when the economy slows and prices are falling?

 

[JohnDB]

Gold climbs when the economy slows and prices are falling?

Yes....it's a commodity/safe haven that most traders seek during recessions. Silver too....but most especially platinum/palladium. Because Gold, platinum/palladium are not only a store of value but also a high end tech industrial metal (catalytic converters and corrosion resistant electronic contacts)