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Comment by irishcoffee | Hacker News Reader

When you are inject 3-5 trillion dollars into the economy over the span of months, it takes a while for reality to catch up.

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idk, I read an analysis recently that retail investors in funds like the S&P500 are breaking how the stock market is "supposed" to work since people keep pumping the same money every month for retirement into the same 500 companies (or whatever an index is funding) without consequence to their actions, so they're never punished. Line goes up. The purchasing power of the masses outweighs the old brokerage class that decided which companies succeeded based on "real merits".

Probably very true, very simplified.

The best strategy then would be to know when the retirement fund money stops doing this due to age pyramid collapse i would assume.

Aren’t we approximately there? The boomers are all starting to draw down for retirement.

On paper the US is good for another 20yrs, boomers had lots of children and the US had very generous immigration policies.

Agreed but there is definitely sector rotation still that all the banks / insiders can play for an extra few points

>keep pumping the same money every month for retirement into the same 500 companies (or whatever an index is funding) without consequence to their actions, so they're never punished.

When a buyer buys a stock, they are not giving money to the business.

Als, businesses get removed from the SP500 all the time:

https://www.bankrate.com/investing/s-p-500-stocks-list-of-ad...

They generally have to perform (profit, profit margin, revenue growth, market share growth, political influence growth, etc), and the higher the performance, the more their shares are worth (obviously).

M2 is only up $1T in 7 months or am I missing something?

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