I'm not sure if the "collapse" of the stock market is correct here. There's actually two things going on currently, which makes current times pretty difficult to predict.
Forces that would push a market collapse. You have Biden administration raising taxes, raising minimum wage and increasing unemployment. The effects of which is showing up in the latest job reports. Unemployment means people spend less, companies sell less, and earnings report become worse in outlook.
Currency devaluation. The Biden administration is printing money like crazy and holding key interest rates low. This will increase loans, cause the currency to devalue, and trigger inflation. The amount of money they are printing is insanely high and could trigger a hyperinflation. If you look at the example of Venezuela, which had a currency collapse, the country kept printing money like crazy driving up the prices of goods. If only this happened, the stock market would experience a melt-up.
With both items 1 and 2, I think what you'll see is domestic companies tank and multinational companies melt-up. Crypto, gold, silver, and hard assets would also see a jump in price.
The easiest way to gauge inflation is to look at the cost of your grocery bill, and an earlier indicator is cost of rent and housing prices.
Disclaimer: this is not financial advice, and I am not making any recommendations. I am biased about how shitty Biden's policies are.
I'm not sure if the "collapse" of the stock market is correct here. There's actually two things going on currently, which makes current times pretty difficult to predict.
Forces that would push a market collapse. You have Biden administration raising taxes, raising minimum wage and increasing unemployment. The effects of which is showing up in the latest job reports. Unemployment means people spend less, companies sell less, and earnings report become worse in outlook.
Currency devaluation. The Biden administration is printing money like crazy and holding key interest rates low. This will increase loans, cause the currency to devalue, and trigger inflation. The amount of money they are printing is insanely high and could trigger a hyperinflation. If you look at the example of Venezuela, which had a currency collapse, the country kept printing money like crazy driving up the prices of goods. If only this happened, the stock market would experience a melt-up.
With both items 1 and 2, I think what you'll see is domestic companies tank and multinational companies melt-up. Crypto, gold, silver, and hard assets would also see a jump in price.
The easiest way to gauge inflation is to look at the cost of your grocery bill, and an earlier indicator is cost of rent and housing prices.
Disclaimer: this is not financial advice, and I am not making any recommendations. I am biased about how shitty Biden's policies are.