3 ms·
Huge caveats there and one-offs during that period which will likely not be repeated. 1) American population ~60M -> 330M since 1900. 2) Only country w/out ca
by medvezhenok 4y ago
Huge caveats there and one-offs during that period which will likely not be repeated.
1) American population ~60M -> 330M since 1900.
2) Only country w/out capital destruction from WWI and WWII.
3) International money flight (Vietnam, ex. Soviet states) into U.S.
4) Saudi oil $ recycled into US markets (& others due to reserve currency status)
5) Rise of index funds and transferring "hidden" liabilities (pensions) into explicit liabilities (retirement funds, 401ks). Turning the market into a retirement scheme (look at solvency of social security; if people actually withdraw money to retire, normal market will have same issues)
Basically, the market is driven by liquidity and it has become a lot easier to get money into the market over the last ~50 years.