U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Recession

Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by SamBam on Wednesday April 29, 2020 @10:23AM (#23019594)

> So the market is looking to, what, 2025 or something?

Sure. People are basically betting that stock prices are cheap right now, and if they hold onto them for a few years they'll be back to where they were.

Look at the 2008 recession. If you bought then you'd be doing very well.

They're basically betting that the worst has already been priced-in. In a sense, they're probably betting that we won't get a totally calamitous re-opening of the shutdown, or a totally calamitous fall and winter next year. But, in any case, most people adhere to the idea that stock prices always go up eventually, and therefore they buy accordingly.

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Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by slowmovintarget on Wednesday April 29, 2020 @10:57AM (#23020037)

Partly because, for those who can, there's no where else to "save" money due to already depressed interest rates.

We're about to hit bedrock, I suspect.

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