Ah! The stock market, I am glad you brought this up. I have a piece on this waiting in the queue. I will gladly give Trump credit for the absurdity playing out in the stock market. The confidence game being played on Wall Street and around the world is only superficially about anticipatory deregulation and tax cuts, but if we dig further it is about the order of things and the balance of power it brings. Plutocracy will reign. Contrary to the celebrated in-group thinkers of the school of economics, the market is not driven by rational actors.
What is the ‘Rational Choice Theory’
Rational choice theory is an economic principle that states that individuals always make prudent and logical decisions. These decisions provide people with the greatest benefit or satisfaction — given the choices available — and are also in their highest self-interest. Most mainstream academic assumptions and theories are based on rational choice theory.
Rational Choice Theory
An economic principle that assumes that individuals always make prudent and logical decisions that provide them with the…
This! From the consumer confidence index report…
Consumers’ appraisal of present-day conditions was slightly more positive in December. The percentage saying business conditions are “good” increased marginally from 35.0 percent to 35.2 percent, while those saying business conditions are “bad” decreased marginally, from 12.3 percent to 12.1 percent. Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” decreased from 37.5 percent to 35.7 percent, while those claiming jobs are “hard to get” also decreased, from 16.8 percent to 15.2 percent (a 16-year low).
Consumers’ optimism about the short-term outlook declined sharply in December. The percentage of consumers anticipating business conditions to improve over the next six months declined from 23.1 percent to 20.2 percent, while those expecting business conditions to worsen increased from 6.7 percent to 9.2 percent.
Consumer Confidence Index® | The Conference Board
The Conference Board is a global, independent business membership and research association working in the public…
…however does not compute to what is going on here in any rational way or sense, and evidently no one seems to want to speak on, or explain it.
Over December, the Dow Jones Industrial Average DJIA, rose 1.8%, outpacing the average December return of 1.41%, which is the highest average of any month for the Dow, historically speaking.