The stock market begins the trading year 2022 with a roar
Posted By RichC on January 3, 2022
Even with all the negativity around Covid19 and the rapidly spreading, but somewhat more tolerated, Omicron variant … investors chose to shrug off what looks to slow down the economic re-openings around the world. The saying I keep hearing is that “I’m done with it.”
My view for the strong stock market start on the first day of trading in 2022 is that the stimulus trillions poured into an economy by Washington DC needs a place to go (be invested) and that millions of pent-up consumers have money they want to spend (buy stuff and go places). In the absence of acceptable fixed income yields, that can keep up with 6.8% inflation, the only investment choices are real estate and the stock market (or maybe crypto?)
BUT … I suspect everyone knows that this is a party that must come to an end. No matter the country, central banks cannot print money forever without people losing trust in fiat money … or having to deal with hyperinflation … so the powers that be if they are of sane mind (questionable!) are sure to tighten monetary policies, raise interest rates and tell the U.S. Congress to stop deficit spending on anything and everything.
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