How They CON USThey are GETTING DESPERATE TO KEEP OIL DOWN SO INFLATION STAYS LOW
How long can TPTB keep their fingers on the scale?
What happens when we LITERALLY RUN OUT OF GASOLINE?
“Closed” signs at gas stations?
Wall street and fund mgrs are doing everything they can to suppress and smother this rally in energy stocks to keep money going to their FAANG stocks
They KNOW these companies are printing money here....but they have TRILLIONS already invested in FAANG and related stocks... so they are getting desperate to keep the money flows going there.
We are in an active WAR right now.
Their efforts are akin to sticking fingers in a dam to hold off the FLOOD.
But the onslaught of higher rates and rising energy prices is a TSUNAMI that will wipe them out.
The FED WANTS Inflation.
They're not idiots.
They knew what printing $10.5 TRILLION would cause.
https://m.youtube.com/watch?v=YPHEM4gEqvg
WS and fund managers desperately clinging to low rates / growth stocks / low inflation are forgetting the 1 simple rule of finance:
DON'T FIGHT THE FED.
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In my pre-accident life, I used to be a business valuator. I was a CPA and a CBV.
most tech stocks are valued based on a DCF model.
The key component of this model is the terminal value
not to go too far into the weeds here, but the higher the interest rate, the lower the terminal value. Nearly ALL growth stocks' value comes from the terminal value since none have any current earnings - profitability is 99% of the time assumed to come at some point in the future.
The way the math works in the DCF, the higher the rates, the lower the terminal value. The lower the terminal values, the lower the value for growth stocks.
THIS IS WHY IT'S IN WS'S INTEREST TO ARTIFICIALLY PROP UP FAANG STOCKS AND SUPRESS OIL AND OIL STOCKS.
ESP. CDN OIL STOCKS
THEY WANT TO KEEP THE MONEY FLOWS GOING TO FAANG.
LITERALLY TRILLIONS DEPEND ON IT.