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kleinbl00 · 1896 days ago · link · · parent · post: The Fed just pumped $128 billion into markets to pull down interest rates, its first injection in 10 years
The pricing of equities has been largely divorced from fundamentals since the last crash. This is what happens when money is near-free: you use the money to pay your dividends and prop up your stock price. And again - "fundamentals" are deeply out of fashion. 85% of the trades out there are algorithmic, are high-frequency, and are operating entirely on "technicals" - as in, they're following patterns in the graphs, not values in the news. The thing is, at some point someone turns off the bots, cashes out their poker chips and leaves the casino and as soon as enough people do that, things get exciting:
