Im confused

If the economy is not great, how come the DOW Jones thingie is on a massive massive bull market?

Attached: Screenshot 2019-09-01 at 00.00.25.png (834x476, 64K)

Are you dumb

It's because companies keep making money, keep growing, keep paying dividends to their shareholders, keep projecting future expectations of making money

lmao how new are you to investing

I find it weird you thinkg I am stupid, when you didnt answer the question.

I will say it again, my question is why is the economy weak if the Dow Jones is so high

Because inflation is worse than what's being reported. Money is not safe in banks, it loses purchasing power as simple interest can't keep up with inflation. People can get higher returns on stocks than keeping cash.

Stock buybacks and helicopter funny money. Basically the public is subsidizing the stock valuations and profits of large corporations.

what is inflation

It’s because all the money the fed is printing is going straight to the fucking stock market

That chart isn’t growth, it’s devaluation of the dollar you fucking idiots

The economy is still doing well it is just that the predicted economic slowdown(recession) hasn't yet occurred. So on paper we're still in a bull market but the buzz is that we soon are going to be in a bad economy

Pretty much. Same thing happening in Straya. Interest rates drop, nek minnit everyone is getting into stocks cos better returns than the fiat sitting in the banks and the stock market surges.

Finally an answer Im starting to understand

I still cant get over this guy, first thing he does is call someone dumb, then proceeds to get confused over the question. Talk about projecting.


Can you explain further please

Also does that mean a chart regarding the price of a big mac is a good indicator for inflation? If not which is the most accurate inflation chart?

Attached: Screenshot 2019-08-30 at 13.28.54.png (1052x1034, 762K)

Because the money these companies are making isn't coming from growth it's coming from redistributing wealth from the middle class upwards, in the form of stagnant wages, forced overtime etc. What do you think will happen when the middle class can't buy shit anymore and companies can't squeeze their employees anymore? This has knock on effects also, like when both parents in a family are working so much overtime cause Mr Goldberg needs a new car, they don't have time to raise their kid. Or even worse like on the case of Australia they just aren't even having kids and and their birth rate is under the replenishment rate.
So yes the Market is looking good but at the expense of the working and middle classes which will eventually come back to bite it in the ass

ok so when the recession hits - will the DOW Jones stay high cos of inflation?

and if it is inflation then why is this inflation chart just basically flat for the us?

Attached: Screenshot 2019-09-01 at 00.25.28.png (1586x978, 142K)

Because Americans have access to low interest rate credit and are over leveraging themselves with debt.

SP500 is the result of compounding that inflation

>SP500
Ok but that doesnt explain why the inflation chart I just posted is flat ?

:I.. im still confused

it might. there's speculation of the existence of what some call the "plunge protection team" which basically amounts to government pumping money into the stock market precisely for the sole purpose of preventing equity price collapses and maintaining a semblance of stability. the idea is to keep the charade up as long as possible by kicking the can down the road. it's most likely what we've been seeing for a while now (at least a couple years) in the markets. it works until it doesn't.

It's flat, not non zero. Simple calculus may answer the only question you seem to be reaching for here

1.05^5=11.5x

1.05^50=11.5x

>SP500
>SP500 is the result of compounding that inflation
Fucking hell how can you be so dense
That faggot explained it in one sentence.
You even repeat it, greentext the first half and still remain retarded

Attached: 1rahca.jpg (660x495, 82K)

SP500 == inflation then ? literally its only gone up because of inflation?

oh wait so inflation is like 2% , but over the year its adds up to that exponential type chart?

Stock market gonna crash soon is just a meme that unironically started here on Jow Forums and gradually made its way to the mainstream media kek

I am not 100% sure of this so don't quote me, but in Straya for a long time now (over a decade), products have been getting smaller year by year. So you are paying for less of something than you were the year before. The prices have not gone up much, but the quantity of the product has gone down. I am not sure whether this is accounted for in our inflation calculations. In short, the prices haven't gone up and inflation looks subdued or non-existant, but you have to buy more of the thing which costs you more fiat.

The economy is great
(In America only.)
not sure what youre talking about. also companies make more money now then in the past

How fucking old are you?
>Does the passage of time occur?
>Help me I'm retarded

Companies make profit...

Attached: 66c33e23.jpg (687x762, 110K)

Poster you’re quoting here, no it’s not. Look up the cantillon effect and how the money they print is actually going to the rich far before it’s hitting the price of a Big Mac

A much more insidious form of inflation