Post by Admin on Jul 24, 2021 11:12:19 GMT -6
Originally posted to FaceBook Oct 17, 2020 - moved here July 24, 2021
Bank of America just went on record that of the 4 scenarios in the upcoming election (assuming that Republicans controlling the House of Reps is impossible) the best one for the stock market is Biden winning and Democrats having control in the Senate. Why is that good for Wall Street? Per BoA, it means fewer roadblocks to massive stimulus packages that will further inflate stock values. BoA says that Wall Street should push for a Blue Wave because it is the best way to get tax payer funds to go directly to the stock market's bottom line. Forget actual company profits and corporate health. Just redirect massive amounts of funds and due to supply and demand all of the tickers will rise!! It's not an incorrect theory exactly, but it's not sound fiscal policy either!
In different terms -
Some major financial advisors are saying the best thing for stock prices is for the Democrats to win everything. Not because it will actually be good for the economy, but because they will give away so much of our taxes (stimulus payments) that stock prices will still go up because of all the available money. The issue is the source of that money. It's either big tax increases or its made from nothing by the Federal Reserve Bank. Using the Fed causes major inflation and makes prices go up everywhere. It actually hurts poorer people the worst because their paycheck buys less stuff. However, the richer folks have assets that increase in value and aren't as dependent on paycheck-to-paycheck needs.
Bank of America just went on record that of the 4 scenarios in the upcoming election (assuming that Republicans controlling the House of Reps is impossible) the best one for the stock market is Biden winning and Democrats having control in the Senate. Why is that good for Wall Street? Per BoA, it means fewer roadblocks to massive stimulus packages that will further inflate stock values. BoA says that Wall Street should push for a Blue Wave because it is the best way to get tax payer funds to go directly to the stock market's bottom line. Forget actual company profits and corporate health. Just redirect massive amounts of funds and due to supply and demand all of the tickers will rise!! It's not an incorrect theory exactly, but it's not sound fiscal policy either!
In different terms -
Some major financial advisors are saying the best thing for stock prices is for the Democrats to win everything. Not because it will actually be good for the economy, but because they will give away so much of our taxes (stimulus payments) that stock prices will still go up because of all the available money. The issue is the source of that money. It's either big tax increases or its made from nothing by the Federal Reserve Bank. Using the Fed causes major inflation and makes prices go up everywhere. It actually hurts poorer people the worst because their paycheck buys less stuff. However, the richer folks have assets that increase in value and aren't as dependent on paycheck-to-paycheck needs.