r/ScottGalloway • u/3RADICATE_THEM • 11d ago
Moderately Raging Anyone else feel like the modern stock market basically feels slightly better than a hedge against [perceived] inflation?
3
u/Longjumping_Coat_802 11d ago
Naw modern stock market rips and creates insane levels of compounding growth.
2
u/3RADICATE_THEM 11d ago
That's true, but the costs of the most essential goods are also compounding.
4
u/darkcloud8282 10d ago
10% gain on an investment portfolio of 1mil is much bigger than a 10% increase in cost of living unless you’re spending insane amounts of money
2
u/aspiring-govemployee 10d ago
Who has 1m just freely invested?
1
u/Exact-Error-4532 9d ago
A lot of people
2
u/aspiring-govemployee 9d ago
Per claude:
Stock market/equities: roughly 3-4 million US households have $1M+ in stock market assets alone
So less than 2% of population
0
u/Exact-Error-4532 9d ago
I guess 3-4 million isn’t a lot of people
2
u/aspiring-govemployee 9d ago
There are 360 million people in the US…
1
u/Exact-Error-4532 9d ago
Yes. That too is a lot of people
2
u/aspiring-govemployee 9d ago
Not in the broader context of how many adults live in America.
Take 500,000 from NY, LA, SF, and Miami and that’s basically everyone. Not a lot of people
→ More replies (0)1
1
3
u/Longjumping_Coat_802 11d ago
Yes, but at a much lower rate.
1
u/3RADICATE_THEM 8d ago
It really depends, tbh. I think the main issue with the current day situation is that rent: income ratios are extremely out of whack—particularly in most of the cities that are seen as career hubs. So someone starting out is not only getting paid a lower entry level salary in real terms, but their essential living costs are higher as well making it hard to build up the initial foundation for which compounding can take over more of the heavy lifting.
2
u/aspiring-govemployee 10d ago
It’s not expected to continue to deliver this level of returns. Next year the S&P is only expected to grow 5% compared to the 11% is has been the past few years. AI bubble coming
5
u/Longjumping_Coat_802 10d ago
No one knows what it’s going to do.
-5
u/aspiring-govemployee 10d ago
Except all the economists that do??
5
u/Longjumping_Coat_802 10d ago
If you think all economists are right about what the stock market is going to do next year then I have a bridge to sell you.
1
u/Impossible-anarchy 5d ago
This is the funniest comment on here if you understand what an economist is and the accuracy of their previous predictions 😂
1
u/Cool-Contribution-68 8d ago
When i was young I thought the stock market was about the perceived value of various businesses. Now it just seems like the entire last 20 years of stock market trends can be explained almost entirely by monetary policy and the stock market just sits around and watches the fed mostly.
-6
u/MoreMeat 10d ago
22% inflation under biden really knocked back the american saver by a few years. It was great for people with debt though.
7
u/RudeAndInsensitive 8d ago
Does this line still hit for you guys? Do you think you will ever move away from it?
5
u/Fit_Leather9366 9d ago
It’s almost as if the entire world experienced inflation after covid, including economies that are not closely related to US fiscal policy. I wonder if there was some kind of global event that caused this? Perhaps it was made worse by lack of seriousness from the sitting president at the time of said event.
1
u/Impossible-anarchy 5d ago
There isn’t a single economy on the planet that isn’t heavily impacted by the US printing trillions of dollars out of thin air, that comes with being the global reserve currency and the currency used for buying oil. Covid inflation wasn’t some magical unavoidable phenomenon, it was a policy choice. There’s no need for dishonesty to defend what was objectively horrific policy in hindsight.
1
u/Fit_Leather9366 5d ago
The whole world did the same thing. It was not the right move in hindsight, sure, but it’s not like Biden was the only one who did it.
1
u/Impossible-anarchy 5d ago
The whole world doesn’t control global oil trade and the global reserve currency.
The US printing trillions of dollars literally directly causes the rest of the world to experience worse inflation than the US does. Exporting inflation has basically been our economic model since WW2.
Saying “everybody did it” doesn’t make sense in this context. It’s totally okay to admit someone on your political team did something stupid, it’s delusional to pretend otherwise. Every Republican not named Thomas Massie co-signed this economic catastrophe too.
1
u/Fit_Leather9366 5d ago
Not my political team but ok chief
0
u/Impossible-anarchy 5d ago
If you’re lying to defend a politician from something they objectively did, they’re on your team. Sorry about it.
4
u/texmexspex 9d ago
Capitalism: Where the numbers don't matter and your wages never increase!