Posted 12/14/2023, 2:16:40 AM
Stock Market Gains Concentrated in Few Sectors, Risky for Small Investors
- Bulk of the stock market growth since July has come from just 2 sectors - banks and energy companies
- Their earnings have grown due to price adjustments under the IMF program, not innovation
- Stock brokers tell stories to entice retail investors, but trade mainly to benefit their top clients
- Many firms' earnings rely on govt-administered prices and formulas indexed to the dollar
- With the economy adjusting under the IMF, it's risky for retail investors to take on more risk with their savings