Analyzing the Crash

There are many things in this universe I don’t know much about, but the stock market is near the top of the list of those things. Nonetheless, that’s the news of the day, so that’s the topic of this blog.
I’ve heard a few theories. Some say it’s because of the Corona Virus. I don’t really get that. So far it’s been great for Big Toilet Paper and the makers of bacterial soap. Supermarkets have been doing a roaring business and I’m sure it will be good for the pharmaceutical companies in the long run. Of course, if everybody in the world gets quarantined, there might be some economic disruption, but it’s more like an economic time-out, really. People will stay at home and shop on-line more and get their food delivered. The economy is not going to totally collapse.
Others say it’s because the Saudis are being greedy again, and want more money for their oil. That could be part of it. Darn good argument for solar and wind power, as I see it.
I did read one article of a more serious nature that tried to explain it in actual financial terms. The gist was that this is rich people profit taking, sticking it to the 401k folks and waiting for the market to tank to buy back their own stocks, thus making lots of money and consolidating their power all at the same time.
I’ve got another theory. If Bernie Sanders gets the nomination, he will get the presidency, which will mean some disruptions in the market. Private prisons, for profit health corporations (btw, Biden’s brother is involved with one of those, currently under investigation), and even fossil fuel companies will be hard hit when Bernie takes office. It makes sense that some people would be trying to divest of those stocks now.
Which is good. No reason the average investor should get stuck with the losses. The billionaires that own those companies will be able to switch over to something else easy enough.

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