Not really. Gold tanked in 2008 along with SPY. There is a weak inverse correlation between SPY and GLD, but lately both have been going up together. GLD just had it's best year since 2010, SPY just had its best year since 2013.
Actually, Powell, the Fed President, has north of $100 million. Although maybe he no longer considers himself a modern economist after his failed normalization attempt.
%% LOL True.100 years ago[before FED formed] Ford was actually hi tech. Scata,You must not look @ QQQ much or tech fundamentals, much.......Good thing for the bulls many stocks are run better than TSLA.[ TSLA was mostly down in 2019, but if some buy TSLA-they could buy anything. LOL]
Where is the money coming from? * Federal Reserve Bank of NY trading desk injecting billions daily- Repo madness catching up from holidays. * Q1 fund inflows. * Seasonal influence is strong this time of year. * Bull market with very little resistance to get back to new highs. * Short squeeze from those that volunteer to stand in front of a train at full speed.
There is huge money in retirement funds and investment funds that needs to find a home. Cash doesn't pay well. What you are suggesting is that people should have by choice earned 2% in 2019 when the Nasdaq went up over 30%. Maybe "rich people" want more then 2%. US stock markets remain a moderately good risk/reward proposition at this point barring a large change in the world scene.
That's just the way many short term traders talk about markets and how they perceive people invest in them. In reality, most people allocate their money on a percentage basis in equities, bonds, cash, maybe gold for some and they reallocate those percentages as their confidence in markets changes. Some just buy balanced funds that do it for them, garnering a fairly mediocre return in a strong bull market but far more sheltered from risk on any downturn. My guess ( unresearched ) is that most investors were under invested in equities in 2019 after being scared off to some degree by the correction in late 2018. Such is the reality of markets, people don't want to pay less on the corrections because of fear but feel they are being left behind after prices appreciate significantly. I am happy I pretty much captured the entire move in 2019 in a year where it was easy to be shaken out by news or popular sentiment among traders and the financial press. Sometimes the best moves occur when markets are the least popular.
Point of order. The Fed was formed in 1913. So 100 years ago the Fed had been in existence for a while by then.
Just because it worked in 2019 does not mean 100% in the stock market is a smart allocation of wealth since that is hindsight. Running an investment, real estate, small business or international business still beats blind buy and hold.
Not if your business loses money lol. There's no sure thing and everything is easy in hindsight. Every year, there's a handful of stocks that make over 100%. Look at how much Domino's Pizza (DPZ) has risen in the past 11 years. Seems obvious now? But there is literally NO WAY to forecast accurately. And even the best, George Soros included, are wrong often.