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
Interest rates were rising because inflation was high. Inflation was high because *on average* people had a lot of spending money after covid (ie, the “economy” was “good” on average), but global supply chains were still shaky. Oh, and because a big oil producer invaded a country that produced a good fraction of the world’s wheat. And corporations used the excuse “oh, inflation is high” to jack up profits. Those also pushed inflation up.
Unfortunately, the people for whom the economy was best were already well off, which explains why *generally* it might have *felt like* things were bad – inflation was high, now interest rates are also high, but the average Joe isn’t the one with the extra money.
But there *is* a lot of extra money, even if it’s not in average Joe’s pocket, and this pushes IP corporate profits and share prices.
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