Key insights
- The post suggests that US equity markets are detached from economic reality, driven by retail investor sentiment and algorithmic trading, leading to potentially unsustainable highs despite geopolitical and economic uncertainties. This disconnect poses a risk of a correction if sentiment shifts or economic fundamentals deteriorate.
Just saw a vid saying that basically even though there is plenty of reason for economic uncertainty (war, oil, trump) it really doesn’t matter anymore. The stock market won’t reflect real world events anymore because it’s basically in a constant cycle of consumer investors, algorithms, and factors i really don’t understand that well just reacting to every single move in the market. To reiterate, everyone and everything is buying and selling based on every incremental move in the market. That is why we are getting consistent highs rn even tho we technically shouldn’t. Curious to see what everyone thinks…