Why is the US stock market so lucrative?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one has given you the simple answer.

It's because the economy has been doing well and it reflects in the value of the company's revenue.

Think about it long term. If you're a fortune 500 company, in order to keep up with inflation and costs, they always increase their prices to their clients. That increased revenue / profit is why their stock value goes up.

The economy is absolutely not doing well. Literally all of the US stock market growth in 2025 was driven by AI companies and AI hardware suppliers which are a house of cards that will eventually collapse, the only question is when.

Sigh . . . the economy is mostly but not fully doing quite well. AI is a part but just a part. The top 60% for the most part are doing well.

The Economy is not doing "well" what planet do you live on?

Unemployment is rising fast, Inflation as well. The $ is crashing, our National Debt is rising at an exhorbement amount ......
Go take Econ 101 and get back to the people with brains.

Inflation year-end 2024 was 3.75%, for year-end 2025, 3%. So not rising.

Unemployment has edged up a bit. 4.1% year-end 2024, 4.4% year-end 2025. So not rising "fast."

And, the S&P rose 18% in 2025, the NASDAQ was up 21%, the DJIA was up 14.9%, and the Bloomberg U.S. Aggregate Bond Index returned 7.3%. Those are not the hallmarks of a problematic economy.

To the prior PP's point, much of that gain is due to the Mag 7 (not even including other AI stocks). From Google's AI:

The Magnificent Seven stocks (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, Tesla) have driven a massive portion of S&P 500 gains, recently accounting for over 60% of positive performance in key periods. These seven companies represent roughly 34%–36% of the total S&P 500 market capitalization as of late 2025, up from ~12% in 2015.

If they experience a correction . . .

Of course they will experience a correction. And then the S&P will recover and go to new highs like it always does. You can’t time it. In early 2022 during Biden’s term the S&P500 went down to roughly half what it is now - around 3,500. Were you freaking out then?

[Anonymous]

Anonymous wrote:Because we have the strongest military. We can impose our will on others.

This is true. Playing out in real time, right now.

[Anonymous]

Anonymous wrote:The sooner this stock markets enter a significant correction the better. But I don't foresee a significant correction anytime soon because the current wall street gangsters making national economic decisions will keep juicing up the market

100% this. Main street is usually under represented at the economic decision making table anyways regardless of the party in power. But with this administration it's worse. Some of the key players are folks who have taken risks their entire lives. They are bringing the same mindset to the government. Let's pray we don't experience a financial crisis under this government. If we do, they will bring wall street type solutions and f**l us even more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Because we are an ultra capitalist country. We celebrate those who have succeeded and hide this who "failed"

I spent a year in Ivory Coast. Americas propaganda is real. Sure Ivory Cost is a very poor country. But some part of DC and Maryland are as run down as some of the poorest neighborhoods I saw in the capital city there.

This is just false. Stop with the lying.

I have never been to Ivory Coast. But boy we have some serious poverty in this country. Look at the percentage of Americans consider poor. It's high. I know our media enjoys showing us pictures of Africans with flies over their head and bellies the size of cantaloupe to make us feel better.

Then the question is, is the chronically unemployed Redneck dependent on public services and living in a dwelling with inadequate heat, better off than the starving African ? Keep telling yourself that they are better off. PP is correct. We do everything we can to "hide" the undesirable poor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are a society of consumers and easy and cheap crecdit make it so everyone can be an uber-consumer. But it has its consequences.

"Average Balance: As of late 2025, the average cardholder carries a balance of approximately $6,700 to $7,900.

The "Revolving" Gap: For the roughly 49% of households that carry a balance from month to month, the average debt is much higher, sitting at $11,413 (up about 4% from the previous year)."

I got into this trap of easy credit. I had high credit limits after my divorce and ended up raking $65K of personal CC debt and then car loan on top of that. This is when I only make $60K/year. I need to get a second job because the interest is killing me. It is all my fault.

Self awareness is an amazing skill to have. Most people with your level of debt are not self aware of their own debt. Their debt keep climbing, but strangely enough they think it will mysteriously disappear.

Since you are self aware, start looking for a way out. There is always a way out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one has given you the simple answer.

It's because the economy has been doing well and it reflects in the value of the company's revenue.

Think about it long term. If you're a fortune 500 company, in order to keep up with inflation and costs, they always increase their prices to their clients. That increased revenue / profit is why their stock value goes up.

The economy is absolutely not doing well. Literally all of the US stock market growth in 2025 was driven by AI companies and AI hardware suppliers which are a house of cards that will eventually collapse, the only question is when.

Sigh . . . the economy is mostly but not fully doing quite well. AI is a part but just a part. The top 60% for the most part are doing well.

The Economy is not doing "well" what planet do you live on?

Unemployment is rising fast, Inflation as well. The $ is crashing, our National Debt is rising at an exhorbement amount ......
Go take Econ 101 and get back to the people with brains.

Inflation year-end 2024 was 3.75%, for year-end 2025, 3%. So not rising.

Unemployment has edged up a bit. 4.1% year-end 2024, 4.4% year-end 2025. So not rising "fast."

And, the S&P rose 18% in 2025, the NASDAQ was up 21%, the DJIA was up 14.9%, and the Bloomberg U.S. Aggregate Bond Index returned 7.3%. Those are not the hallmarks of a problematic economy.

To the prior PP's point, much of that gain is due to the Mag 7 (not even including other AI stocks). From Google's AI:

The Magnificent Seven stocks (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, Tesla) have driven a massive portion of S&P 500 gains, recently accounting for over 60% of positive performance in key periods. These seven companies represent roughly 34%–36% of the total S&P 500 market capitalization as of late 2025, up from ~12% in 2015.

If they experience a correction . . .

That's only relevant to the S&P 500. Most other indices were up significantly, too, and they have little to do with AI except incidentally. The broad market is strong, although specific sectors always do relatively better or worse than the markets as a whole. Diversification is the way to avoid overexposure and overconcentration in anything.

[Anonymous]

The lesson from U.S. markets is simple: Invest intelligently and consistently and prosper over the long term.

Stock market returns vary by time frame but the tendency is clear:
Past 10 years (2016 – 2025): 15.75%
Past 20 years (2006 – 2025): 12.39%
Past 30 years (1996 – 2025): 11.80%
Past 40 years (1986 – 2025): 12.74%.
S&P 500 historical performance: Since its inception in 1928, the index has averaged an 10.02% annual return. However, it wasn’t until 1957 that the index included 500 stocks. Since then, the average annual return has been 10.59%.
📌 Source: NYU Stern School of Business

Anyone can invest, those who don't or who choose speculation instead typically are the ones complaining about their poor financial positions. The U.S. markets create wealth and are accessible to anyone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one has given you the simple answer.

It's because the economy has been doing well and it reflects in the value of the company's revenue.

Think about it long term. If you're a fortune 500 company, in order to keep up with inflation and costs, they always increase their prices to their clients. That increased revenue / profit is why their stock value goes up.

The economy is absolutely not doing well. Literally all of the US stock market growth in 2025 was driven by AI companies and AI hardware suppliers which are a house of cards that will eventually collapse, the only question is when.

Sigh . . . the economy is mostly but not fully doing quite well. AI is a part but just a part. The top 60% for the most part are doing well.

The Economy is not doing "well" what planet do you live on?

Unemployment is rising fast, Inflation as well. The $ is crashing, our National Debt is rising at an exhorbement amount ......
Go take Econ 101 and get back to the people with brains.

Inflation year-end 2024 was 3.75%, for year-end 2025, 3%. So not rising.

Unemployment has edged up a bit. 4.1% year-end 2024, 4.4% year-end 2025. So not rising "fast."

And, the S&P rose 18% in 2025, the NASDAQ was up 21%, the DJIA was up 14.9%, and the Bloomberg U.S. Aggregate Bond Index returned 7.3%. Those are not the hallmarks of a problematic economy.

To the prior PP's point, much of that gain is due to the Mag 7 (not even including other AI stocks). From Google's AI:

The Magnificent Seven stocks (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, Tesla) have driven a massive portion of S&P 500 gains, recently accounting for over 60% of positive performance in key periods. These seven companies represent roughly 34%–36% of the total S&P 500 market capitalization as of late 2025, up from ~12% in 2015.

If they experience a correction . . .

Many, if not most, individuals invest through funds. Mutual funds, etfs, what have you. They people that manage those funds are well aware of economic conditions and reallocate their exposure accordingly. Not to say that the correction that is coming won't hurt, but it will not be as crushing as it will be for those who are heavily invested on an individual share basis in those and related entities.

Those who invest through funds and have disproportionally invested in tech funds may wish to reallocate to funds which focus on staples and other sectors that are more immune to tech crashes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are a society of consumers and easy and cheap crecdit make it so everyone can be an uber-consumer. But it has its consequences.

"Average Balance: As of late 2025, the average cardholder carries a balance of approximately $6,700 to $7,900.

The "Revolving" Gap: For the roughly 49% of households that carry a balance from month to month, the average debt is much higher, sitting at $11,413 (up about 4% from the previous year)."

I got into this trap of easy credit. I had high credit limits after my divorce and ended up raking $65K of personal CC debt and then car loan on top of that. This is when I only make $60K/year. I need to get a second job because the interest is killing me. It is all my fault.

Self awareness is an amazing skill to have. Most people with your level of debt are not self aware of their own debt. Their debt keep climbing, but strangely enough they think it will mysteriously disappear.

Since you are self aware, start looking for a way out. There is always a way out.

But it came back to bite us, because in their misery and ignorance they were so easily manipulated by the Project 2025 crowd.

And in their end, it will cause the downfall of what we once stood for.

[Anonymous]

Anonymous wrote:
401K money. Where would they go?

+1. A significant portion of the population blindly invests a whole lot of dollars into the stock market each pay period. Other countries don’t have the same tax incentives to invest like the USA does.

In Germany, there are no tax-advantaged retirement options, and the pensions are not nearly as generous as US social security.

[Anonymous]

PP @ 13:47 isn't being accurate. German pensions are relatively to income higher than American social security.

[Anonymous]

Anonymous wrote:The lesson from U.S. markets is simple: Invest intelligently and consistently and prosper over the long term.

Stock market returns vary by time frame but the tendency is clear:
Past 10 years (2016 – 2025): 15.75%
Past 20 years (2006 – 2025): 12.39%
Past 30 years (1996 – 2025): 11.80%
Past 40 years (1986 – 2025): 12.74%.
S&P 500 historical performance: Since its inception in 1928, the index has averaged an 10.02% annual return. However, it wasn’t until 1957 that the index included 500 stocks. Since then, the average annual return has been 10.59%.
📌 Source: NYU Stern School of Business

Anyone can invest, those who don't or who choose speculation instead typically are the ones complaining about their poor financial positions. The U.S. markets create wealth and are accessible to anyone.

These are impressive numbers -- but how can average market returns be such much higher than average GDP growth? Curious for some insight on this issue from somebody with a deep background in economics.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The lesson from U.S. markets is simple: Invest intelligently and consistently and prosper over the long term.

Stock market returns vary by time frame but the tendency is clear:
Past 10 years (2016 – 2025): 15.75%
Past 20 years (2006 – 2025): 12.39%
Past 30 years (1996 – 2025): 11.80%
Past 40 years (1986 – 2025): 12.74%.
S&P 500 historical performance: Since its inception in 1928, the index has averaged an 10.02% annual return. However, it wasn’t until 1957 that the index included 500 stocks. Since then, the average annual return has been 10.59%.
📌 Source: NYU Stern School of Business

Anyone can invest, those who don't or who choose speculation instead typically are the ones complaining about their poor financial positions. The U.S. markets create wealth and are accessible to anyone.

These are impressive numbers -- but how can average market returns be such much higher than average GDP growth? Curious for some insight on this issue from somebody with a deep background in economics.

Part of where you may want to begin is to remember that before 1991 we didn't use GDP. We looked at GNP. However, value of a US based company is impacted by the GNP. GDP, focusing solely on domestic product, does not pain the entire picture.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because we are an ultra capitalist country. We celebrate those who have succeeded and hide this who "failed"

I spent a year in Ivory Coast. Americas propaganda is real. Sure Ivory Cost is a very poor country. But some part of DC and Maryland are as run down as some of the poorest neighborhoods I saw in the capital city there.

This is just false. Stop with the lying.

I have never been to Ivory Coast. But boy we have some serious poverty in this country. Look at the percentage of Americans consider poor. It's high. I know our media enjoys showing us pictures of Africans with flies over their head and bellies the size of cantaloupe to make us feel better.

Then the question is, is the chronically unemployed Redneck dependent on public services and living in a dwelling with inadequate heat, better off than the starving African ? Keep telling yourself that they are better off. PP is correct. We do everything we can to "hide" the undesirable poor.

Did you pick the unemployed redneck for a reason as opposed to urban poor blacks? Which have higher unemployment fyi. And Baltimore poor areas are pretty nasty, far more violent than West Virginia hollows.

That aside, I've traveled through African countries. And India. There is a level of poverty in those places that just does not exist in the US, unless you are a mentally ill homeless who chooses to live in a tent over help. But even then the homeless still has some basic access to social services. So not sure why you're trying to turn this into deranged delusional politics.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The lesson from U.S. markets is simple: Invest intelligently and consistently and prosper over the long term.

Stock market returns vary by time frame but the tendency is clear:
Past 10 years (2016 – 2025): 15.75%
Past 20 years (2006 – 2025): 12.39%
Past 30 years (1996 – 2025): 11.80%
Past 40 years (1986 – 2025): 12.74%.
S&P 500 historical performance: Since its inception in 1928, the index has averaged an 10.02% annual return. However, it wasn’t until 1957 that the index included 500 stocks. Since then, the average annual return has been 10.59%.
📌 Source: NYU Stern School of Business

Anyone can invest, those who don't or who choose speculation instead typically are the ones complaining about their poor financial positions. The U.S. markets create wealth and are accessible to anyone.

I just took a look a long time series showing the ratio of GNP to GDP. It has never varied from from 100%. The stock market has massively outpaced both GDP growth and GNP growth. It isn't clear to me how this is possible over such a long period.

These are impressive numbers -- but how can average market returns be such much higher than average GDP growth? Curious for some insight on this issue from somebody with a deep background in economics.

Part of where you may want to begin is to remember that before 1991 we didn't use GDP. We looked at GNP. However, value of a US based company is impacted by the GNP. GDP, focusing solely on domestic product, does not pain the entire picture.