Since Trump has taken office the stock market seems to be setting record high after record high after record high. Is the stock market and economy really doing that well? If so why? Or is it all just smoke and mirrors and we are heading for a big let down? I'm curious because I'm ignorant to what all goes on to make the stock market work.
Trump knows a lot more about business/ finance then being president of the free world. God willing,I'm sure he can do something with our deficit as well
His personal strategy of borrowing lots of money, losing it, and then declaring bankruptcy to start over doesn't work for the federal government.
you love being a moron? https://www.bloomberg.com/news/arti...gree-trump-tax-plan-will-widen-budget-deficit https://www.reuters.com/article/us-...ld-obstruct-trumps-tax-cut-plan-idUSKBN1C930A http://www.businessinsider.com/trump-tax-plan-federal-deficit-2017-10
Trump inherited a good not great economy. Nothing has much changed in the economy since his election. The change in the stock market appears to be in higher valuations. Higher stock prices but not commiserate earnings growth. In theory these higher valuations will eventually revert to the mean. The question is when. The stock market boom in the late 90s had high valuations until the “.com” bust, which was many years in the making. A recession would no doubt burst the bubble.
Trumps biggest contribution is the promise of corporate of tax cuts, and it is certainly having an impact on the stock market. However that’s a dangerous game to play given the fact that at some point in the near future either they will get the cut or they won’t. Either way it can spell disaster (black Monday during Reagan era as example) when the market reacts afterwards. The other major thing that is really driving up the price of stocks is stock buy backs which are a big issue right now that is a major concern to the market long term as executives have been allowed to buy back their own companies stocks to artificially inflate the value. All of these scams eventually come home to roost and have a negative outcome, the government regulates, and the stock market traders find some other new scam to make millions at the expense of risking our country’s economic risk. That being said we’ve had a very good last 2 years since the recovery from 2008 and the stock market shows that continually rally with months of full employment and healthy GDP numbers. The obama admin deserves more credit than it has gotten from the stock market world but at the end of the day it doesn’t matter to you and me cause we don’t own stock. We should care about wage growth and unemployment.
Bluntly speaking, the music is still playing in the stock market. Recent highs have been driven thanks to expectations of large tax cuts, but the truth is is that investors are still buying as long as the music is playing. Once it stops, and this can be anything btw, can be an irrational shock, geopolitical conflict, debts that nobody knows about lurking around the corner, then you'll see prices come way back down.
We actually in the midst of the second larger bull run in history. Despite what you have heard, the economy has been doing well in most places for several years. A growing economy with cheap money inflates assets like real estate and stocks. I think we are in an asset bubble despite a strongish economy. We shouldn’t be cutting taxes or pumping out cheaper money at this point.
A stronger dollar coupled with a much smaller debt would probably depress asset classes more than a pro-business president's "bump". There's a lot of free money the US catching around the world as multinational investors speculate and diversify away from their own country's troubled currencies. It's all latched on the assumption the government will socialize any losses a black swan would bring out.
The market is largely continuing the run it started before. Also uncertainty world wide has contributed to the growth of the US market. I will give Trump credit that while he has done a lot of stupic things he hasn't done anything that directly negatively affects the economy. At the sametime deregulation and the promise of big corporate tax cuts are appealing to market. My own view since before the election is that we are due a correction and the job of the President will be to manage the correction. I think that will still happen no matter what the Administration does. A 9 year growth cycle is hard to sustain and sooner or later several factors will catch up to us.
Except the rate at which the market is increasing has been nearly constant with Obama's last year and Trump's months in office. So we saw this rate of increase well before Trump was elected. It has nothing to do with him. Any competent corporations knows not to wait on a piece of legislation under this GOP Congress and GOP adminstration. No corporation is banking on tax reform passing. They are operating as if it will never pass. This is just natural market forces that have almost fully recovered from the 08 great reccession.
Not sure if you have been noticing but the stock market has been bull for the past 8 years. The recent drivers are indeed the tax plan but the increases you are seeing are more a result of corporate profits which are sky-high as a result of the global economy picking up steam.
I pay into a solid pension instead of SS but I also have a Roth IRA setup that I make moderate contributions to. When the market inevitably makes a correction and has a solid downturn I'll be contributing heavily to the account and a seperate market account. It's a good time to be in the market.
The biggest reason is that the world economy is in a boom atm. Thinking that the a bull run is due to who's the President or anticipation of a new (and shaky) tax plan... smh.
Lots of factors at stake, some Trump-related and some not. 1. Company earnings have been exceptional for several quarters 2. Tax reform is a possibility and has the potential to add a few hundred points to the S&P 500 3. A weaker dollar (past 2 quarters) is making U.S. goods price competitive in foreign markets 4. Technological innovation continues to have an impact 5. The overall economy is holding strong - low unemployment, decent GDP growth of around 3%, moderate inflation, good manufacturing numbers, effect from natural disasters has been surprisingly low 6. Great Recession monetary policy is still having an effect 7. Business confidence levels have been high since the Trump election 8. International markets are seeing improved economic growth, including Europe and Japan The main factors related to Trump are 2 and 7.
