The Stock Market Today Is A Bear!
While the economy today has recovered on the surface, there are still many threats hidden in the economy. All these have the ability to make the stock00M-512 market a bear. Let us now analyze them one by one to check out why this is the case.
To start peeling through the economy, I believe it is vital that we first explore the money it uses (currency). Today, due to excessive printing, many investors have begun to lose confidence in the US dollar as it is a rather well-known fact that this currency will be on a long-term trend of depreciation. Because of this instability in the dollar, countries like China are threatening to change the world reserve currency. Should that happen, the US will not be able to pay its bills in US dollars and this will cause its economy to become more vulnerable to decisions by other nations. Thus, linking back, with the US dollar doing so badly in the global arena, stocks will soon reflect this and this will give us a bear market.
To add on, despite the government announcing economic recovery, unemployment is still very high at around 9.7% in the US. This shows that symptoms for economic illnesses are still present. Also, with companies reporting higher profits, many of them are still laying off workers as they aim to cut production costs. In the short run, profits will remain high as production costs are low. However, in the long run, unemployment will force people to liquidate their stocks and a massive sell-off here can trigger a stock market crash. With this, there is enough reason to believe that the stock market today is a bear.
Furthermore, technology has been changing very rapidly as time passes by. Today, technological change is invisible and can only be seen with your minds. This leaves many people behind because they cannot see changes that are remaking the world. When changes go invisible, speed of change increases exponentially and there is accelerating acceleration. It is hard to get out of things you cannot see moving towards you. With this, people are being run over and made obsolete by technological innovations they cannot see or understand. Thus, many jobs will soon be replaced by technology. This will force unemployment to rise and subsequently, more people will demand for unemployment benefits, straining government00M-513 finances and thus inflating the debt bubble. This will contribute to making the stock market more bearish in nature.
Moreover, school systems today fail to prepare people for the Information Age. With technology and its applications changing so quickly, many schools fail to keep up and this trains many students to become obsolete employees. Given such poor training, students will find it harder to adapt to changes and if this occurs on a large scale, America will lag behind in today's evolving world. As a result, economic growth will suffer, bringing about a bear market in stocks when pessimism begins to set in.
In addition, after so many years of getting into debt to consume, Americans have begun to realize that frugality is the new cool. As the US economy grows by increasing debt, a fall in debt generation will reduce consumption, hindering economic development. As a result, unemployment will rise and this worsens the scenario today. Also, with money printing being on steroids today, American savers will lose out big time when inflation erodes the purchasing power of their money. Coupled with rising unemployment, Americans will become poorer and in turn, a bear for stocks will appear.
In conclusion, given 00M-520these dangers lurking around in the US economy, it is more or less reasonable to say that the stock market is a bear. With knowledge of this fact, investors ought to have the right strategies to thrive under such situations.
To start peeling through the economy, I believe it is vital that we first explore the money it uses (currency). Today, due to excessive printing, many investors have begun to lose confidence in the US dollar as it is a rather well-known fact that this currency will be on a long-term trend of depreciation. Because of this instability in the dollar, countries like China are threatening to change the world reserve currency. Should that happen, the US will not be able to pay its bills in US dollars and this will cause its economy to become more vulnerable to decisions by other nations. Thus, linking back, with the US dollar doing so badly in the global arena, stocks will soon reflect this and this will give us a bear market.
To add on, despite the government announcing economic recovery, unemployment is still very high at around 9.7% in the US. This shows that symptoms for economic illnesses are still present. Also, with companies reporting higher profits, many of them are still laying off workers as they aim to cut production costs. In the short run, profits will remain high as production costs are low. However, in the long run, unemployment will force people to liquidate their stocks and a massive sell-off here can trigger a stock market crash. With this, there is enough reason to believe that the stock market today is a bear.
Furthermore, technology has been changing very rapidly as time passes by. Today, technological change is invisible and can only be seen with your minds. This leaves many people behind because they cannot see changes that are remaking the world. When changes go invisible, speed of change increases exponentially and there is accelerating acceleration. It is hard to get out of things you cannot see moving towards you. With this, people are being run over and made obsolete by technological innovations they cannot see or understand. Thus, many jobs will soon be replaced by technology. This will force unemployment to rise and subsequently, more people will demand for unemployment benefits, straining government00M-513 finances and thus inflating the debt bubble. This will contribute to making the stock market more bearish in nature.
Moreover, school systems today fail to prepare people for the Information Age. With technology and its applications changing so quickly, many schools fail to keep up and this trains many students to become obsolete employees. Given such poor training, students will find it harder to adapt to changes and if this occurs on a large scale, America will lag behind in today's evolving world. As a result, economic growth will suffer, bringing about a bear market in stocks when pessimism begins to set in.
In addition, after so many years of getting into debt to consume, Americans have begun to realize that frugality is the new cool. As the US economy grows by increasing debt, a fall in debt generation will reduce consumption, hindering economic development. As a result, unemployment will rise and this worsens the scenario today. Also, with money printing being on steroids today, American savers will lose out big time when inflation erodes the purchasing power of their money. Coupled with rising unemployment, Americans will become poorer and in turn, a bear for stocks will appear.
In conclusion, given 00M-520these dangers lurking around in the US economy, it is more or less reasonable to say that the stock market is a bear. With knowledge of this fact, investors ought to have the right strategies to thrive under such situations.
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