Why Dividends payouts might rise while stock prices decline: Economic Deflation, consumer price INFLATION, and Progressive Politics – December 1, 2021,
When stock prices inevitably start coming down, smart companies are going to have to entice investors to come on board. In my OPINION, we’re entering into a phase, in which every private entity is going to recognize the ECONOMY is deflating. Now, because rule by fiat currency will hide economic deflation, the average person paying more for consumer goods will most likely accept their low standard of living in exchange for not having to work.
Now, this shouldn’t be confused with all people opting not to work, quite the opposite, in the next few months even if you’re an entry-level worker, you’re going to want to take advantage of the coming WAGE gains. Consumer prices are going up, but they likely will not go up uniformly as an example people might not pay the same price for clothing, so there’s a chance the price of clothing might be stagnant, but the price of food is a necessity and if a company is selling foods people like, those prices will rise and people will inevitably accept the higher price.
Now, can governments enact prices controls? Sure they can, but who cares, they’re going to have to give those private entities some form of credit or something to compensate them for their political stupidity. We’ve already caught Justin Trudeau and Joe Biden lying several times, and they’ll likely lie again and pretend as if they have the private sector under their control, but eventually everyone is going to recognize the farce for what it is.
The government and central banks have already lost control, so the real question moving forward now will be PRICE REDISCOVERY The U.S dollars in circulation aren’t enough to satisfy the current demand around the globe, but mal investment is malinvestment and a lot of people rewarded with U.S dollars for DOING NOTHING are going to WASTE it and this ultimately equates to an inevitable economic collapse.
But in the meantime, expect dividend-paying stocks to get ahead of the curve because the last thing they want is for people to dump their stocks. Why most people will not dump their dividend-paying stocks is because there’s nowhere else to find cashflow, until interest rates are normalized, real estate prices are going to continue to climb, which means everything is going to be overvalued and expensive and this ultimately equates to a collapse.
But you see when the economy is crashing, there will be an assumption by most people that, printing money will solve this problem, but the problem with this assumption is that the progressive governemnts have added new regulations to the economy. Regulations are taxing and they’re expensive and they change human bahavior, no person looking to seek profits likes to feel like they’re getting the short end of the stick.
There’s a lot of picking economic winners and losers from Progressive governemnts these days and this equates to prices having to be rediscovered in the market place and this could lead to a decline in the stock market and to keep their stocks propped up, even if it’s a temporary measure don’t be surprised if Dividends go up while stock prices go down for some stocks.
Interesting times ahead!