VTI - There Is A Divergence In The Market
2024-06-17 12:26:39 ET
Summary
- The market is driven by funds and fear, fear-of-losing and fear-of-missing-out.
- Money is not a physical object, created by government spending and destroyed by taxation.
- Federal Government deficit-spending leads to private sector surplus, which correlates with movement in the stock market.
The market is not driven by headlines--it gets "jiggled" by headlines, but not driven. It is driven by two factors: funds and fear. The latter is the most evolved emotion in humans (actually, it is so for all mammals) and itself comes in two parts: fear-of-losing, and fear-of-missing-out. The former drives the market because it is the entity that can release real resources -- like labor and materials -- and is at the foundational level of the capitalistic economy. Money drives the market....
There Is A Divergence In The Market