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Pre Covid we had really good economic growth. Post covid was all government and fed stimulus which has ended. Apple was about $80 a share in early 2020. Now it's $143 and we are going into a recession. I think it could go down a lot. People without jobs don't buy new iphones. I've been looking at a 5 year chart and only buying stocks or etfs that are below that 2020 pre Covid price. The spike in stock prices after the covid stimulus is the stupidest thing I've ever seen. The real economy was wrecked but stocks and real estate spiked to record levels. The fed and the government need to stay out of the markets. Stock prices should be based on earnings not fed policy or government stimulus.
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Not exactly but close. In late 2019 pants were being shat as long and short term bond yields inverted indicating a recession was brewing. Then covid lockdowns conveniently came along giving the gov an excuse to crank up the money machine and flood the economy with workless cash hoping the 2019 chickens wouldn't come back home to roost.
We now see that you can stall but not eliminate inevitable economic downturns using cash injections. Massive everything bubbles, worker shortages, drowning national debt, and 70's style inflation are the result but it did give us a mini boom and kicked the 2019 (2008?) can down the road to deal with at a later date (we are here). So back to the future we go to pick up where we left off.
I do agree that the gov needs to step back and let the chips fall where they may instead of being puppets of the central banks and big corp. Selective gov. bailouts and stimulus kill competition, capitalism, and the free market not to mention turns every politician into a lobbyist magnet and insider trader with policies pushed to pad his/her wallet.