After 10 years of basically free money subsidizing the market it was understandable that actually taking some of that free money from Wall Street would result in a drop-off in value.
Now investors actually have to go out and look for companies that will make real earnings instead of just vapor ware.
For companies that had cheap money and had offshored their operations to cheap labor areas, (China), paying real wages will be hard to swallow. I think only critical items and items that can be produced by robots will be reshored. The rest will go to "friendly" cheap labor markets.
One thing Wall Street learned, is that in any real crash the Fed will be there to bail them out again.
Now investors actually have to go out and look for companies that will make real earnings instead of just vapor ware.
For companies that had cheap money and had offshored their operations to cheap labor areas, (China), paying real wages will be hard to swallow. I think only critical items and items that can be produced by robots will be reshored. The rest will go to "friendly" cheap labor markets.
One thing Wall Street learned, is that in any real crash the Fed will be there to bail them out again.
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