In 2008 banks were too big to fail! In 2020, stocks might be too big too fail!
We discuss the financialization of the economy,, how household wealth is impacted by financial engineering and low interest rates force people to invest. This all leads to stocks being hot and discussed by many, cheap brokers like Robinhood add to the party. Usually, it would be a huge warning sign for the stock market, but today it might be indicating that stocks are too big to fail.
With stocks being $28 trillion of american wealth, or 23%, it is hard to imagine the FED letting the market crash due to repercussions on consumption and spending. Plus, the stimulus might keep the not so rich happy and avoid populism. It all depends how the current financial engineering situation will be managed.
How the FED and politicians react will have huge repercussions on your investing, how the stimulus is used and how it impacts the economic situation.

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Full-time independent stock market analyst and researcher!
STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio)

Stock Ideas and Analyses for The Small Investor:
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Modern Value Investing book:
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