The market has been inflated and fake for the past couple of years because so much of the money from corporate tax breaks was spent on stock buybacks.
CEOs love stock buybacks because their compensation is tied to share price. But did the regular workers get raises? Were more good jobs created?
Now the market continues to climb. Why? Well, my guess is that buybacks are continuing. But also with the interest rate on CDs at almost zero, investors are turning to — or staying in — the market.
But it is naive to believe this climbing market can be in any way touted as a strong economy.
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