There's been a definite run-up since the election, which is great. But, it's been built on stockholder expectations and not the performance of the assets that underlie the stocks. It doesn't even reflect actual regulatory changes, only expectations of regulatory changes. So, the gains are still pretty vulnerable. I think we'll see better after a couple of years, once policies are implemented and annual reports start reflecting cash flow gains.
Fundamentals have gone out the window for quite a while now, so it's basically become a read-and-react market for investors.
Are you just ringing the cash register on profits? I don't think it's a horrible time to take some profits, but what are you looking to buy? Or are you just sitting in cash?
What fundamentals have gone out the window? Are you talking about P/E ratios getting stretched to the high side in anticipation of major tax cuts and regulatory changes?
Yes, but he said he was selling. And yes I would hope mutual funds would go up if the market is going up
It was more of a general comment, somewhat in jest. I've felt for a while now that this market has become a "drama queen" in the sense that it reacts with extremes to any kind of news (or non-news), good or bad. I wasn't really trying to be taken all that seriously when I said that.
Most stocks are traded algorithmically. They probably are reading twitter or google news and probably just trading on that based on sentiment analysis. Other algorithms react to that causing the swings we see.
The market is forward thinking and likes hearing things like infrastructure spending, less regulations, and corporate tax cuts. Right now those are just vague notions as nothing has been put to a vote. I don't think the DOW is a very good indictator for economic success personally.
It's been a good ride. I keep thinking that this can't last, however. I generally stay in the market (mutual funds) when things go south, and eventually the market turns back around. That's been our experience over many years. When there's a correction, and there always is, the people that panic and bail often end up wishing they hadn't.
Trump is going to have a net long-term negative effect on stocks if all his policies are implemented.
This. I would also say with a bull market like this it's very wise to keep a decent cash position to buy low when the market inevitably corrects.
The DOW reached 24,272 today. On 11/7/16 it was at 17,888.....a 36% advance in just over 1 year since the election.
... or wages, or full-time job growth, or ... And why is any of this surprising? Of course wall street sees short-term advantage in a bunch of clowns who want to slash taxes and take the government apart piece by piece. It's a wet dream for them. Less so for their kids, but they're hoping to have propped up all of them in their own well-secured McMansions by the time it all hits the fan.
Great considering he entered the office with the greatest reccession since the Great Depression. Isn't it nice for Trump to ride the gravy train of the previous competent administration?
