The Stock Market is being propped up by government spending so as long as Congressturds keep spending more money than is taken in, the stock market will go up.
I put my mutual funds at aggressive shortly after the election and have not been sorry.
Seems to me that NONE of this stock boom crap, supported by $42.5 billion per month for Mortgage Backed Securities from the FED and the same about buying T-Bills to legitimize a Trillion dollar a year entitlement increase under Obama ALWAYS got the high five, thumbs up bravo from these putzs before. Why not now? No frigging QE and lying and BLS bullshit? Why not now? I’ll tell you why. For UBAMA it was all hype and BS. Trump didn’t do anything for it except work for the American people. It didn’t cost him a trillion dollars a year in deficit entitlement shenanigans to make that all seem legitimate.
Herbert Hoover was elected president in November 1928. He took office on March 4, 1929. The stock market crashed approximately 8 months after his inauguration on October 29, 1929. Hoover was blamed for the crash and the economic collapse that followed.
The Trump administration will be eight months old in September 2017. The last major financial crisis occurred in September and October 2008 and was blamed on the incumbent president George W. Bush.
The stock market is at an all time high. There are bubbles student loan market, the sub prime auto loan market, and in the residential real estate market. Retail store closures are running at a record pace. The national debt exceeds $20 billion and is growing. The Federal Reserve has been monetizing the federal debt and is artificially suppressing interest rates making price discovery difficult in many asset markets. Globally central banks are manipulating asset prices and interest rates. Billionaire speculators, such as George Soros, manipulate currencies and markets. Many puublic, union and private pension funds in the United States are grossly underfunded at a time when the baby boom generation is retiring and beginning to draw from funds that don’t have the resources to pay the growing number of beneficiaries. Over 90 million people of working age are not in the labor force.
It is very possible there will be a major economic collapse this year in the United States. A stock market crash in the fall will be blamed on Trump and the Republican Party, particularly after months of vacillation on economic policy.
It’s a bubble, a rather interesting bubble. Large-cap stocks are becoming overpriced due to index-fund investing. Collectively, index funds are spending close to $1 trillion a year buying the top 100 and the top 500 stocks. This is almost certain to push prices up.
It’s real now, and if it goes down, it will be real then, too.
For the past eight years, the Fed Res did not hike interest rates for fear of harming the Obama economy. Trump comes into office and we are immediately scheduled for three .25% rate hikes this year. Each rate hike is like a tax on borrowing money and puts a crimp in business plans, home purchases, and anything that requires credit. Maybe the Fed Res should have gave Trump eight years without a hike too, since now Trump will be fighting not only the current but the waves pounding the beach in regards to economic growth. I bet Trump’s economy prevails in spite of the Fed’s hostile interest rate hikes (while long overdue untimely).
If all the prognosticators around here knew as much as they pretend to they’d all be on their yachts having a party and not here commenting.