Why is the stock market rallying when the economy is so bad?

Re:Why is the stock market rallying when the economy is so bad? by JMTQp8lwXL on Sunday May 10, 2020 @09:41PM (#23138090)

Are you saying every person who buys a home with a mortgage, while still throwing 5% of salary in their 401(k) is irresponsible? Many, many people do this.

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Re:Why is the stock market rallying when the economy is so bad? by VRay on Monday May 11, 2020 @01:40AM (#23139199)

If you think you can count on YOY 12-15% returns on the stock market, you should be buying 10% OTM LEAPs instead of shares. You'll be the world's first trillionaire in a decade or so

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Re:Why is the stock market rallying when the economy is so bad? by JMTQp8lwXL on Monday May 11, 2020 @03:37AM (#23139744)

You don't need a 12-15% stock market return for your investment returns to beat the growth of your interest debt. For most mortgages, it's a fixed rate. About 4%, some well-qualified borrowers have in low-to-mid 3%, for mortgages originated in the last 12-24 months. Long-term, will an index fund stock market investment exceed 3% returns? Historically speaking, it's a likely outcome.

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