Of course the stock market is flagrantly rigged and astonishingly inane reasons are given for why it keeps going up, irrespective of what’s happening in the real economy. My favorite inanity just now is what’s given as the reason it’s going up when pretty much everyone says the fed is going to raise rates starting next month.
Near zero rates is the reason the market has supposedly soared in recent years. Now, since rates are going up, expected higher rates is the reason given for why the market keeps soaring.
It has me thinking of George Orwell’s 1984. Here’s a quote from that book: “Oceania was at war with Eurasia and in alliance with Eastasia. In no public or private utterance was it ever admitted that the three powers had at any time been grouped along different lines. Actually, as Winston well knew, it was only four years since Oceania had been at war with Eastasia and in alliance with Eurasia. But that was merely a piece of furtive knowledge, which he happened to possess because his memory was not satisfactorily under control. Officially the change of partners had never happened. Oceania was at war with Eurasia: therefore Oceania had always been at war with Eurasia.”
Present stock market reasoning is Orwell 1984 reasoning. If expected higher rates are now the reason stocks soar, they must always have been expected to rise shortly.
If you don’t know that, it’s only because your memory has not yet been satisfactorily put under control. Best get with it. Believe and obey.
Wall Street Poet Blog 