Eugenio Catone @CatoneEugenio: "Why aren't markets crashing despite..."

Italy

Why aren't markets crashing despite the looming energy crisis and historical low consumer sentiment? There are several reasons, but one that I rarely hear discussed relates to social inequalities. Compared to decades ago, the top 0.10% of the US population holds an immense amount of wealth in terms of equity shares. We are talking about $15 trillion, or roughly 25% of the entire US market. Conversely, the weight of the bottom 50% remains virtually insignificant. Those in the top 0.10% can afford the luxury of holding their positions regardless of global events; they will never truly need that invested capital to cover living expenses. Consequently, this factor explains the current situation: half of the population lives paycheck to paycheck, yet the stock market remains resilient. $SPX500 $NSDQ100 $DJ30 $VOO (Vanguard S&P 500 ETF) $SPY (State Street SPDR S&P 500 ETF)

Not investment advice. The author may have financial interests in the mentioned instruments.