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Alternative hypothesis: bailouts are a temporary smoke screen for the pension and hedge funds, other financial institutions and the super rich to cash out, once
by ThePowerOfDirge 6y ago
Alternative hypothesis: bailouts are a temporary smoke screen for the pension and hedge funds, other financial institutions and the super rich to cash out, once they have liquidated their positions, the real crash happens.
- rileymat2 6y agoAlternate hypothesis: The next year to 18 months of earnings reductions due to covid is not enough to justify a 30% drop in net present value of the market at large.
- rayiner 6y agoTo the top with you!
- scrimps 6y agoThe the companies were accurately priced prior to COVID then that would be the case. If companies were in an overvalued bubble before COVID then that would not be the case.
- amf12 6y agoAnother alternative also is investors fleeing from emerging markets. With Fed's backing the US stock market is a better bet than some others as compared with moving to cash, bonds, Gold, etc.
- jdhn 6y agoMy tinfoil hat hypothesis is that the drop in equity prices will be used as an excuse for bailing out pension funds.