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Stocks are backstopped by the fact that companies are highly highly incentivized to keep the prices high. If suddenly the bubble pops and stocks fall 90%, every
by thehappypm 6y ago
Stocks are backstopped by the fact that companies are highly highly incentivized to keep the prices high. If suddenly the bubble pops and stocks fall 90%, every CEO suddenly has a very real fiduciary incentive to get the stock back up. Cut cost to yield dividends, buybacks, whatever it takes.