Which is why celebrating the US stock market gains this year is completely idiotic, most of the companies gained less than 10% even if they broke records - so they are all worth less than before Trump took office.
It’s all a huge scam.
ETF’s that track any of the major indexes are mostly flat when you take the devaluation of the dollar into account. SPY is probably up marginally but just barely. But money sitting in a bank account has lost value in that time frame. A better idea would probably be to invest in stocks and ETF’s denominated in Euros or another currency.
Edit: Also as a result on the devaluation of the dollar, gold is way way up this year
most of the companies gained less than 10%
But the MAG7 were doing 20-40%, and they’re making up nearly half of the S&P 500’s gross value.
It’s all a huge scam.
It’s a huge something. I can’t even tell who is being scammed by whom anymore, though.
Just like with the big '08 crash, everyone’s eating hamburgers they promised to pay one another back for on Tuesday. We’re all waiting to see whose checks start bouncing first.
Just like with the big '08 crash
When AI bubble implodes, it will be 4X the 08 crash and this time there will be no bailouts.
I’d say the fundamental difference between Housing and AI is that we don’t live in the AI. The fallout will be very different for that reason alone.
And as to “no bailouts”? Bush let Lehman go bankrupt and it set off a panic that resulted in the US Treasury outright owning half the investment banking sector by the end of the year. There’s always an appetite for bailouts when shit actually impacts the fan.
US has no way to bailout trillions. you actually do live in the AI, because this bust will kill all retirement plans and pensions.
US has no way to bailout trillions
It did literally exactly this when AIG collapsed.
When it’s the wealthy, there will always be a bailout. Society exists to make them richer.
Does it matter? NASDAQ Index says it gained about 19% YTD, so even with inflation, this is a plus of 9%.
And yes, I know that the gains could potentially be much higher without idiotic politicians.
“The dollar has already lost 40% of its purchasing power since 2000”
That’s the year I started my first job. So essentially I’ve been getting progressively more ripped off for 25 years. That is reflected quite readily by my lack of savings and inability to afford buying a house.
Well, 25 years is a long time. Using actual numbers sourced below, we’re looking at 88% inflation since then. It sounds high, but that’s only 2.5% per year, which is widely accepted as the ideal inflation rate, so it’s actually a pretty good number.
Keep in mind this article was written by a crypto company with every incentive to shake your trust in the dollar so that you buy their totally cool and amazing investment nftcoin.
According to this calculator, a 2025 dollar is worth $1.88 in 2000, and they quote the Bureau of Labor Statistics as the dollar having 53% purchasing power as compared to 2000.
“Widely accepted” by the people ripping us off
so far.
All numbers point to an upcoming U.S. recession that’ll be close to on par with the Great Depression. It’s going to get worse.
Recessions are generally good for the dollar, as they signal lower rates of lending and of monetary circulation.
But because so much of our economy is predicated on a payout on
magic beansAI build out, we could actually see ourselves awash in cheap cash with nothing materially valuable to spend it on at some point in the near future. All our material capital tied up in enormous data centers that do nothing but devour electricity. Fewer and fewer people willing to trade with a nation whose primary exports are bizarro TikTok videos and arms to Israel.Stagflation rides again.
And what economic policy made the Great Depression worse? Anyone? Anyone? Anyone?
Oh, oh, I know! Caravans eating pets and taking our jobs! No, no, wait, the Gulf of Mexico! Err, foreign goods being too cheap! Oh, um, the poors ruining everything for everyone! People getting vaccines or seeing a doctor without going bankrupt! Women in sports! Yes, that must be it!
anyone? anyone? Bueller?
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That means rent prices from 1973 right? Right??
I look forward to a crash and correction.
Lol
Lmao
Better start pinching pennies, our taxes are going to go up and they’re going to use it to bail out the rich again.
If we weren’t domesticated we would general strike
I’ve shifted most of my investments into EU/APAC assets and ETFs. The slope disjoint from before/after Terrific Tariff Time (when I pulled the trigger on swapping to that approach) is visible.
How do I do something like this? I have savings to be going to school for the next couple years in Europe but my money is all tied up in USD currently. It’s like watching someone shovel my savings into a fire. It’s going to be at least a month before I can get a bank account here to transfer my money over but I want to figure out how to get it out sooner
For a bank, I’ve transferred a few thousand to Wise and converted it to Euros. I’m up like 10% in about 7-8 months, compared to just leaving it as dollars.
For trading, just see what ETFs your brokerage offers that target EU/APAC/whatever other region you want to target. And furthermore, if you want to pick securities individually, do the research and ensure that they’re not US-based/traded securities. You can trade non-us stuff on most US brokerages.
Judging by the evolution of both US salaries and prices compared to Europe, the USD is way overvalued versus currencies like the EUR - the cross-currency exchange rates place salaries and prices in the US well above those in Europe, and quite a lot more so than a decade or two ago (20 years ago a lot of things, such as food, used to actually be cheaper in the US).
The dollar’s Reserve Currency status (which, though weakened, isn’t over yet) is maybe what’s dilluting the effects of Inflation in the USD but the measures of this American Administration have probably accelerated its loss of that status (certainly China has increased their efforts to get rid of using the USD for international trade).
Mind you I’ve been in Gold since 2010, having been in the Finance Industry during the 2008 Crash and seen how the problems that caused it weren’t fixed after it, just postponned - in other words, it turned me into a very conservative investor, or maybe a nutter, or maybe both - but only in the last 2 years has Gold started taking of, which I see as an indication that the markets expect things to get bad for the Economy in general in the coming years: Gold is THE traditional way to put one’s savings outside national currencies (as is still done in places like China and India were many people put their savings in gold jewelery) and has nowhere the level of speculation and volatility of crypto (generally its has a similar volatility to cross-currency exchange rates, whilst crypto has levels of volatility closer to that of stock derivatives) so it makes sense that it’s a weathervane of trust in the broader economy of whole nations and even the World.
Thanks Obama! /s
This is good for Bitcoin
Bitcoin is good for the rich, who use it to avoid tax laws and other financial oversight laws. And lots of crime.
You are totally incorrect! You are neglecting that it can also be used to bribe the American President and his family.
Maybe. You see crypto has issues in a world where superpowers fragment the internet and and build quantum computers. Before those problems though there’s the more basic issues of economic collapse and scaling.
You can make money on BTC. But bottlecaps are a better Apocalypse currency
