*** The Official MAGAposting thread ***

[Poopadoop]

the rise started the day he was elected and has not stopped in over a year while he has been president. That's a strong indicator that his election and policies are a primary cause, though they are obviously not the only cause.

So the people who have money invested in the stock market took his election as evidence that stocks would go up, and bought more stocks. Is that about the gist of it?

[spoonitnow]

[spoonitnow]

So the people who have money invested in the stock market took his election as evidence that stocks would go up, and bought more stocks. Is that about the gist of it?

In a nutshell, it means that net value is increasing, which helps everyone. It does not mean that "people who have money invested in the stock market bought more stocks." In fact, it means that more people want to buy stocks than people want to sell them. That's what drives value up.

Aside from that, take it to the official cuckposting thread. I have no interest in discussing anything related to economics with someone who has proven repeatedly that they don't have the baseline level of knowledge to discuss it intelligently.

[Poopadoop]

I have no interest in discussing anything related to economics with someone who has proven repeatedly that they don't have the baseline level of knowledge to discuss it intelligently.

Lacking baseline knowledge never seems to stop you from spouting off.

[wufwugy]

So the people who have money invested in the stock market took his election as evidence that stocks would go up, and bought more stocks. Is that about the gist of it?

Yes, but the question is more about why that is the gist of it.

Stock prices represent the economy as a whole very closely. The distinction between Wall Street and Main Street that is often talked about isn't quite real. For example, if a Trump election causes a rally in Walmart stock prices, that rally is because investors think that demand for Walmart goods will go up, and that demand is about the same as what pushes up Joe and Sally's Corner Grocer too.

There are a lot of caveats to this, but that scenario is the usual and general one.

[wufwugy]

Yes, but the question is more about why that is the gist of it.

Stock prices represent the economy as a whole very closely. The distinction between Wall Street and Main Street that is often talked about isn't quite real. For example, if a Trump election causes a rally in Walmart stock prices, that rally is because investors think that demand for Walmart goods will go up, and that demand is about the same as what pushes up Joe and Sally's Corner Grocer too.

There are a lot of caveats to this, but that scenario is the usual and general one.

I put this in a confusion way and somebody could call me on it who knows better. So, let me clarify.

If there is an increase in demand for retail that includes anything from Walmart to Joe and Sally Corner Shop, one of the reflections is in the stock price of retailers. Most retailers are not traded publicly, but that does not mean that it is only the publicly traded ones that experience the gains. Stock exchanges are structured for an important purpose of acting as a good proxy for the movement in the economy.