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by an_opabinia
2049 days ago
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The stock market has grown significantly while demand for energy has widely declined in the last five months. Every energy long bet has been a disaster. Economic growth may not be able to continue indefinitely, it’s inconclusive, your computers can create more economic value with declining watts even if you can’t. However accounting value, which is what a stock market is, can definitely grow indefinitely. |
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The stock market isn't backward looking, or even short term future looking. Note that someone only watching the S&P 500 would know that the coronavirus broke out in early March but probably think the situation had been completely resolved by August. We can't be sure what the stock market thinks it is seeing (or if it is right for that matter).
And if energy bets didn't turn out well, notice that that correlates to the US losing its position as the world's largest economy. China invested a bunch in energy and now have a noticeably bigger economy [0].
> Economic growth may not be able to continue indefinitely, it’s inconclusive, your computers can create more economic value with declining watts even if you can’t.
This growth isn't going to involve more people because they need food and isn't going to involve more stuff because that needs energy. It'll be a very abstract form of growth.
[0] https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)