Especially as of late – it was going “bad” with the economy and interest rates were rising. How come we see so many stocks with an “All time high”? I’m not looking for a psychological explanation, but literally: where do the coins come from to purchase?
In: Economics
The Federal Reserve printed trillions of dollars to stimulate the economy (quantitative easing) and gave super low interest loans to banks. Tech companies used these low interest loans to buy back all their stock, driving the value up. People sold their stocks, giving them more money to spend on houses and cars and more stocks—which further drives the price of those things up due to demand and competition.
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