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.

  • hark@lemmy.world
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    1 year ago

    Why wouldn’t they lend you money at 1% when the deflation rate is 2%? Their money is worth 2% more plus they get 1% more from you.

    Not every every stock purchase is an investment in a company, because you’re buying off someone who is not the company. The company doesn’t make that money. It’s kind of like used sales vs new sales. Again, only when the company issues new shares or does an IPO do they make money off stock sale.

    If I buy a stock and sit on it, that’s essentially money sitting there. Whether it’s cash or a digital record claiming I own X number of shares in a company, it’s not doing much.

    If I’ve gotten foundational aspects of this process wrong, you’ve yet to demonstrate how.

    • SCB@lemmy.world
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      1 year ago

      There are only a set amount of shares. Shares being in demand increases their price. I am sure you can see him w this does financially benefit the company.

      Yes an IPO is when the most stock is sold, but new shares happen all the time. It’s disingenuously pedantic to suggest purchasing stock is not an investment in a company, by both literal and figurative definitions.

      • hark@lemmy.world
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        1 year ago

        Purchasing stock off a secondary exchange is about as much investing in a company as purchasing a used game and hoping to resell it for a higher price. The company gets no money from these transactions. It’s just glorified gamblers making money.

      • SmoothIsFast@citizensgaming.com
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        1 year ago

        There are only a set amount of shares. Shares being in demand increases their price. I am sure you can see him w this does financially benefit the company.

        Sure, bud, in a regulated market without exemptions for market makers who can naked short sell (crate synthetic shares that do not exist) for the sake of liquidity. Or how about 90% of our market being traded off the tape without affecting prices?

        Yes an IPO is when the most stock is sold, but new shares happen all the time. It’s disingenuously pedantic to suggest purchasing stock is not an investment in a company, by both literal and figurative definitions.

        He is pointing out past ipo you are speculating on growth, which is what trading is speculation, not guaranteed returns.

          • SmoothIsFast@citizensgaming.com
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            1 year ago

            Gamestop pointed out unfettered greed in the market that’s supposed to determine the health of a society. While conviently pointing out the flaws in all our regulatory processes surrounding that market. It fucked the business plan of wall street, not anyone’s brain.