Bloomberg ETF Analyst: U.S. Stocks Are "Too Big to Fail," Fed May Buy Stock ETFs to Rescue the Market in the Future

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ME News, July 7 (UTC+8), Bloomberg senior ETF analyst Eric Balchunas released a study stating that the U.S. stock market is gradually becoming the de facto "retirement fund" for Americans. With approximately 55% of Americans holding stocks and the "Trump Accounts" plan expected to add about 28 million new investors, the stock market is increasingly tied to household wealth, pensions, and social stability. He believes that in the next major bear market, the Federal Reserve has a high probability of buying stock ETFs for the first time to stabilize the market, similar to its purchase of corporate bond ETFs in 2020, as well as the practices of the central banks of Japan and China. Balchunas argues that future political pressure will make long-term bear markets increasingly intolerable, and the continued flow of funds into ETFs during market dips, along with the general expectation of government bailouts among investors, also reflects this trend. (Source: PANews)
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