Hmseconomics Econguru Econ

December 10 at 10:47 AM · 

I have been following the stock market for 57 years, on Wall Street, in teaching, and as a former Investment Advisor.

What’s happening right now is profit taking or “window dressing” as we used to call it, after the tremendous run-up of the market since November 2016. The amount of money (liquidity) as we put it, staved off a Depression from the financial crash of 2008. Economists who subscribe to the monetarist’s approach to the economy would have been appalled, fearing inflation, the “velocity of money as they call it. This has not happened.

At the end of the day, the stock market will recover, just “stay the course” and remember to have a long-term outlook.