3 ms·
Stock prices being up is a function of zero / near-zero percent interest rates and the injection of enormous amounts of capital into the system from the Fed jus
by cbozeman 6y ago
Stock prices being up is a function of zero / near-zero percent interest rates and the injection of enormous amounts of capital into the system from the Fed just printing, literally, trillions of dollars.
Capital has very few "good" places to be allocated at the moment - really for the past decade or so - and COVID-19 put everything into hyperdrive for the tech sector.
Economics Explained on YouTube has a good video about this.
- whimsicalism 6y agoApple's relative stock price has increased, so the general increase of equity prices doesn't explain this. Low interest rates means that people will search for yields elsewhere, it doesn't intrinsically mean they would settle on Apple outside of solid management.
- klmadfejno 6y agoDoesn't mean anything besides people want to buy Apple stock, for a myriad number of reasons.