A lot of people say that the US stock market is currently overvalued since the US economy is down and the businesses are struggling to stand back to their feet, the stock market keeps climbing the mountain and going high. This is one concern for investors and people who are interested in buying stocks as the stock market looks overvalued. It looks like the government and companies are just pumping money into the stock market to make it look good. Do not forget that the stock market is what people see when they want to buy stocks in a company, it is what gives a public company its valuation. If the stock price of a company is going down, there is a high possibility that the people would believe that the company is not performing well internally.
Also, it is true that the stock market cannot be predicted but seeing things around can help to know where and when to invest your money. So many companies are trying to build their stock price as the long-term success of the stock in the market is directly proportional to the strength of the company which owns the stocks.
At the beginning of the year, a lot of businesses ere not making money due the pandemic which lead to an economic shut down. A lot of companies were losing money and just a pinch of companies were making money. Companies like American Airlines was losing $70 million daily due to the pandemic. The pandemic went for a very long time and companies like this should have bankrupted by now but thanks to Donald, the company is enjoying bailout funds so even when they are not making money, they still have free money to spend and keep business going. This same thing applies to a lot of other companies, they are all enjoying the bailout from the government currently.
Currently, a lot of company looks overvalued to me as everyone is enjoying stimulus checks and over the short run, this money would stop flowing soon and we will be left with the real economy. At this point, would people have enough money to invest in the stock market or would the economy be resetting itself.
I really believe that the economy will reset things are going to be worse than before this crisis has been very serious and the effects very damaging, the truth is very scary and I admit that I feel very dead about it in everything that has to do with the markets and the future of the em
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We just have to keep praying for the best in my opinion.
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Sometimes I even really wonder whether it is even safe to invest in stock market or just keep mute about my money
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They are both risky, inflation may happen and the value of the money we save becomes incapable of buying anything and stock might also cause a great price in the value of our money.
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Hmmm. You are right. I guess one is lost in the middle then
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I watched a program from an economy expert the other day who made it clear that when the pandemic is gone the real effect of the free money will surface and we will be left with the actual market.
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The economist has spoken the truth and we can only hope for the best.
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