How is the Stock Market keeping it's value after points to everything?

Submitted ⁨⁨2⁩ ⁨days⁩ ago⁩ by ⁨shoulderoforion@fedia.io⁩ to ⁨nostupidquestions@lemmy.world⁩

https://fedia.io/media/0e/32/0e32dba61ef8062e8bcb8c0c819877140fceea8cb168c28e6a8948da7e6d9676.webp

I have no idea how while Trump is a) ripping out the underpinnings of constitutional law which, in turn, is all that holds up all other laws (including transactional) in the US AND b) ripping apart the post war Western defense alliance leaving Europe and Australia completely exposed and vulnerable AND c) going to impose global reciprocal tariffs, which are going to kill trade and plunge the country and the world into the greatest economic depression (coincidentally) since the 1930's, how the market isn't down 75% - 90% by this point. Hopes & Dreams? Hallucinogens? Heroin?

What power on earth is allowing Hedge Funds, Banks and Small Investors the justification to keep betting on an underlying business system which is literally being pulled apart at the seams with no real hope of being functional shortly. How is this happening. It's like I'm taking crazy pills every day. The market should look at what Trump's already done (much less what he still promises to do) and say, whoop that's us, we're audi, this is insane, we can't trade our value as a corporation any longer, we don't know where supplies, labor, administration, distribution, sales, or any law governing any of it stands, we have to pull all our monies out, and put them someplace safe like our pockets.

What is happening to keep the market propped up, when literally everything, everywhere that it needs for stability in projected earnings is being hollowed out beneath it?

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jrs100000@lemmy.world ⁨2⁩ ⁨days⁩ ago
Trump is generating an enormous level of security risk globally, which encourages investment money flow to the country with the biggest military. Ironically, that happens to be the US.

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- BombOmOm@lemmy.world ⁨1⁩ ⁨day⁩ ago
  The US also has the best natural barriers to invasion in the world. The only access points are through the Arctic (good luck with that), or by traveling over a damn ocean to assault beaches on North American soil. When not only America has the largest navy in the world, but several of the runner ups are close allies, how do you plan on even getting to the US with your forces? You don’t.
  
  As you say, the US is well positioned in this changing world. It’s one of the few countries almost guaranteed to continue to do well.
  
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Mio@feddit.nu ⁨2⁩ ⁨days⁩ ago
Unfortunately the president does not need to care about what his political party thinks about his action. There is the big problem. Now they have a wild tigger running around.

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aesthelete@lemmy.world ⁨2⁩ ⁨days⁩ ago
Because the speculative “economy” necessarily grows faster than the actual economy.

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roguetrick@lemmy.world ⁨1⁩ ⁨day⁩ ago
$5 parking right next to the bread line. Not bad.

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- Barbudo@lemm.ee ⁨1⁩ ⁨day⁩ ago
  I think that’s 25¢
  
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  - roguetrick@lemmy.world ⁨1⁩ ⁨day⁩ ago
    Which is around $5 in today’s dollars.
    
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Shardikprime@lemmy.world ⁨1⁩ ⁨day⁩ ago
*Don’t even ask the question.

The answer is yes, it’s priced in.

Think Amazon will beat the next earnings? That’s already been priced in.

You work at the drive thru for Mickey D’s and found out that the burgers are made of human meat? Priced in. You think insiders don’t already know that?

The market is an all powerful, all encompassing being that knows the very inner workings of your subconscious before you were even born.

Your very existence was priced in decades ago when the market was valuing Standard Oil’s expected future earnings based on population growth that would lead to your birth, what age you would get a car, how many times you would drive your car every week, how many times you take the bus/train, etc.

Anything you can think of has already been priced in, even the things you aren’t thinking of.

You have no original thoughts. Your consciousness is just an illusion, a product of the omniscent market. Free will is a myth.

The market sees all, knows all and will be there from the beginning of time until the end of the universe (the market has already priced in the heat death of the universe).

So please, before you make a post on Lemmy asking whether AAPL has priced in earpods 11 sales or whatever, know that it has already been priced in and don’t ask such a dumb fucking question again.*

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NocturnalMorning@lemmy.world ⁨2⁩ ⁨days⁩ ago
It’s called 401ks, literally anyone with a 9-5 job has one. The entire retirement system was designed to keep people invested in the stock market and betting on it.

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- satans_methpipe@lemmy.world ⁨2⁩ ⁨days⁩ ago
  Ya beat me to it. Working class people got tricked into turning over their income to be a floor for the US stock market. I always decline 401k benefits at corpo jobs and I love the looks of bewilderment and attempted lectures I’ve received. It’s pretty obvious that HR or someone gets kickbacks for enrolling new employees.
  
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_cryptagion@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago
Because the stock market is pure fantasy that doesn’t have anything to do with the economy?

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scarabic@lemmy.world ⁨1⁩ ⁨day⁩ ago
The stock market is a speculative vehicle whereby predominantly rich people get richer. Generally pointing at everything should indicate a lot of rich people getting richer, so what’s the issue? It’s only if you take the valuation of the stock market as some kind of core health measurement of the economy that it stops making sense. Because it’s not that.

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TerkErJerbs@lemm.ee ⁨2⁩ ⁨days⁩ ago
Look up how IBM, Coca Cola and Volkswagen (among many, many other companies that are very much still established to this day) got their boom-times during WW2 by supporting both the allies and the fash at the same time. They profited from everything that happened, in every way, and continue to do so.

Fascism is good for business, so to speak.

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zephorah@lemm.ee ⁨2⁩ ⁨days⁩ ago
Money and 1/2 of Economics is based on magic and “religious” belief.

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catsarebadpeople@sh.itjust.works ⁨1⁩ ⁨day⁩ ago
pca.st/…/6df1a506-9b38-4298-8de5-ec17e71d379b

Here is a great explanation of what you’re asking. I trust this channel for news over pretty much anything else.

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LordGimp@lemm.ee ⁨1⁩ ⁨day⁩ ago
The stock market holds value because people believe it holds value. There is nothing actually backing any of that up. We dumb monkies just like watching number go up and will ensure number goes up at all costs. It’s how capitalism works.

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- shalafi@lemmy.world ⁨1⁩ ⁨day⁩ ago
  Meh, party true. Say Coca Cola’s stock goes down, they still own the infrastructure, the products and the brand. In other words, they have real value that didn’t go poof just because their stocks went down.
  
  Much of what we see is bullshit, because bullshit makes headlines. Tesla is a perfect example. This crowd hardly needs a review, but suffice to say that while Tesla has value, it’s tanking fast and the stock price will eventually pop and drop to that far, far lower value.
  
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Auli@lemmy.ca ⁨1⁩ ⁨day⁩ ago
They have most of the wealth. They don’t need the working class. Just jeep purchasing beach others netbooks and number goes up. Realized it wasn’t tied to reality during covid.

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Letsdothis@lemmy.world ⁨1⁩ ⁨day⁩ ago
Trump is a businessman, and apparently a good one if you look at his past results, like it or not.

Hence, business making is what he does and encourages in the American populous, again, like it or not.

Of course a Trump presidency will stimulate the stock market. It is what it is.

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- Auli@lemmy.ca ⁨1⁩ ⁨day⁩ ago
  He bankrupt a casino. Doesn’t sound like good businessman.
  
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Clent@lemmy.dbzer0.com ⁨2⁩ ⁨days⁩ ago
The stock market is up because nothing has fundamentally changed. Tarrifs are only going to hurt the consumer.

The stock market is based on value extraction and as long as everyone keeps on working and consuming at reasonable level it will continue to hum along just fine.

Some markets and industries will be harmed by this the tarrifs but these are small fractions of the overall economy. There is also a ton of uncertainty since Trump has a tendency to pull back any measure that affects the market averages.

The pain will be felt by workers and consumers but people have to work and we cannot stop consuming so affected workers will ultimately shift to new places and consumption will shift to new products and the skim will continue.

Global markets aren’t going to get shaken up because the global market is incredibly resilient. Prices will quiver for a bit but in the long run they will simply route around us and new normals will emerge.

The only way things change is if the people cause it to change. Either accidentally or on purpose. But the change has to be sudden and swift because there are tons of levers built into the system to force us to participate.

Something like national strike might not be enough unless it can be sustained indefinitely and it’s not clear how that could occur. I suspect will take several events each gaining the momentum of the last and there is little chance of a first event for occurring.

The stock market is indicating it doesn’t think we have the fortitude and despite what we may want to be true, they know a lot about us and our patterns. Our predictability is to their profit, literally.

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- Inucune@lemmy.world ⁨1⁩ ⁨day⁩ ago
  People don’t have to work. This is the assumption the entire house of cards is built on. Those at the top need you to work so they realistically don’t have to.
  
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  - obviouspornalt@lemmynsfw.com ⁨1⁩ ⁨day⁩ ago
    People have to work to live. They’re working to make money to buy food at the grocery, or at the other end of the spectrum, they’re working by hunting and gathering food.
    
    I’m excluding people with enough wealth to buy their food indefinitely from this discussion. At global scale, not many people are in that category.
    
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  - Clent@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago
    We’re not there yet. The problem is as we approach it, they just skim more so we will reach a point where we should barely need to work but won’t know it.
    
    That skim is how the stock market keeps going up in ways that make no sense to the workers. They’ve figured out how to profit regardless of the struggles of the working class.
    
    As it stands today, we could probably survive by working one day per week, likely less. The amount being skimmed is that insane.
    
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xmunk@sh.itjust.works ⁨2⁩ ⁨days⁩ ago
Look at Tesla stock prices - even after a slight deflation it’s astronomically overvalued and divorced from reality.

We’re in a speculative bubble baby!

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- pdxfed@lemmy.world ⁨2⁩ ⁨days⁩ ago
  Divorced from reality? Teslas CEO controls Treasury payments as of a week ago.
  
  I cannot think of an easier bet than on a dictator’s personal interests rising. Trump is just a sock puppet for a bit. Musk, Vance, etc. are the next Gen of uglier.
  
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  - xmunk@sh.itjust.works ⁨2⁩ ⁨days⁩ ago
    The market was significant out of whack before this election even began.
    
    Tesla’s stock price is 99% pure (dumb) speculation.
    
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FriendOfDeSoto@startrek.website ⁨1⁩ ⁨day⁩ ago
I’m not surprised why big companies no matter what morals they claim(ed) to follow still do business like nothing happened. As long as they can strive for profits and shareholder value they will. Big business is the last place one should look for any sort of backbone.

I’m also surprised why there hasn’t been more of an impact on the stock market. I wouldn’t have expected an immediate drop of 50% or some catastrophic decrease like that. That’s because a lot of the incredibly smart economic policies from stable genius will take time to cut into bottom lines. First prices continue to go up for US consumers, spending will go down, unemployment numbers will go up, and then possibly a recession. Which he will blame on Greenland, I suppose.

Stock markets are legal gambling. As long as the gamblers still have hope they will play. Most will play without hope as well. And Trump 45 was good for them so hope is still very much alive.

At the same time, chainsaw wielding deregulation will help businesses in the US. It may not be great for consumers or the environment but tax breaks are great if you can get them. Melon Usk is not bulldozing any sort of oversight for his business interests or the IRS for no reason.

As for uprooting security alliances I think we will see a move away from US manufactured defense goods pretty soon, maybe starting next year. Europe will concentrate on its own industry more than ever. Even if they don’t find a common position to take in regards to Russia’s invasion of Ukraine, they will all look to increase spending locally rather than transatlantically, having hopefully learned that reliance on Washington is futile.

Defense contacts are harder to get rid of than a Tesla though, these things take even longer to show up on Wall Street. I mention Tesla though because numbers came out recently in France and Germany that showed a dramatic drop in new car registrations. I think this development on the micro level will eventually reach macro proportions as well. I am personally waiting for pitchforks being sharpened in Usk’s boardrooms because his doge antics and political statements cut into their bonuses.

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JakenVeina@lemm.ee ⁨2⁩ ⁨days⁩ ago
Because its value was always fictitious.

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Pyr_Pressure@lemmy.ca ⁨2⁩ ⁨days⁩ ago
Because not enough people are selling.

If people / companies don’t believe the stocks will lose value they won’t sell. If they don’t sell they won’t lose value.

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itsnotits@lemmy.world ⁨2⁩ ⁨days⁩ ago

keeping its* value

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nutsack@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago
The tariffs will trigger a recession for sure. I think the markets are waiting to see what happens with those. The rest of the things you listed have nothing to do with the stock market.

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Tm12@lemmy.ca ⁨2⁩ ⁨days⁩ ago
I am hoping at least the first blatant constitutional case to appear before the Supreme Court would rationalize the market to this shift to fascism and overt imperialism.

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jeffw@lemmy.world ⁨2⁩ ⁨days⁩ ago
I’ll agree with what others are saying about speculation but I’ll add a few points…

Meme investing. People just buy shit now. You can download Robinhood or any other free app and buy something you read about because you feel like it. That’s a lot different than traditional stock valuation. And in some cases (GameStop?) the public can have such force that it massively overwhelms traditional stock valuation

The other point is that businesses will still function. Will it suck to have a 20+% tariff? Yes. Will in end a massive global corporation? No.

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How is the Stock Market keeping it's value after *points to everything*?

Comments

How is the Stock Market keeping it's value after points to everything?