How can Nasdaq and U.S. markets break through the all-time high
How can Nasdaq and U.S. markets break through the all-time highs and rise even at these high interest rates?
1. This is because companies that make good money buy stocks and burn them.
2. Like the Fed, which used to buy U.S. government bonds indefinitely, U.S. stocks buy back their treasury stocks and burn them.
3. Originally, when a company makes a profit, it executes an investment and distributes the remaining money or reserves it in cash, but the U.S. serves as a demand for buying treasury stocks in the financial market (distribution market) with money earned from the real economy.
4. It can’t be bad because the money earned by companies in the real economy enters the financial market and buys stocks.
5. If you pay dividends, cash will flow out of the company, you will have to pay dividend taxes, and there is no guarantee that shareholders will buy back shares with that money.
6. Will this structure be sustainable forever? What if the money-making companies now cannot buy stocks for them in the face of a recession someday? The people who will buy for high value will disappear from the market, and only the sellers will remain.
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