When they touch down, we'll blow the roof, they'll spend a month sifting through rubble, and by the time they figure out what went wrong, we'll be sitting on a beach, earning twenty percent.
Posted on 01/12/2017 2:36:41 AM PST by expat_panama
Part of Donald Trump’s fiscal policy targets mainstream America, not asset classes such as the stock market, bond market and real estate as monetary stimulus does.
The stock market has rallied since the presidential election on expectations fiscal-stimulus policies proposed by Donald Trump will benefit the economy. That might be justified, but that doesn’t mean the stock market can continue to rally in the short run.
Longer-term positive influences from fiscal-policy improvements, instead of monetary-policy stimulus, are clear. Still, those positives won’t be immediate.
Part of Trump’s fiscal policy targets mainstream America, not asset classes such as the stock market, bond market and real estate as monetary stimulus does...
...the groundwork for new U.S. manufacturing jobs takes time...
...When monetary policy tightens, it has an immediate negative influence on economic growth...
...investors seem to be ignoring the risk associated with Trump’s interest in negotiating better trade deals...
...trade wars are not healthy for companies’ earnings growth.
We are extremely concerned that the stock market has reacted prematurely and that it is ignoring immediate risks. We recognize that there is monetary stimulus still coming from the European Central Bank, and in our opinion that is the only reason that the stock market is at a high 25 times earnings. Otherwise a material correction would be part of this warning.
A decline of 5% to 7% in the Dow Jones Industrial Average DJIA, +0.50% the S&P 500 Index SPX, +0.28% the Nasdaq-100 NDX, +0.30% and the Russell 2000 Index RUT, +0.17% is therefore possible, based on what we have defined as the “Trump dump,” which may begin almost immediately.
(Excerpt) Read more at marketwatch.com ...
More globalist claptrap.
That might be justified, but that doesn’t mean the stock market can continue to rally in the short run. >>>>>>>>>>>>
Why not? Obama invoked an extended slow growth in the market bu controlling the Fed , making cheap money available and creating a bubble.
The Fed wil raise interest rates, and a adjustments will happen. Thats a good thing, backing away from the bubble, but after hat adjustment? The stock market will roar like a Lion. The old Bears / Bulls analogy will appear supercilious.
Buy at the bottom of the bubble adjustment and sell at the top of the Roar.
Well I think we should see it between now and the end of January. Possibly liberals are holding on until January 20th just to make Trump look bad and Obama look good. But the past 5 years January 10th to February 10th have been very bad for the market. This year its just stuck at the all time high unable to continue higher.
wow 5 posts in 28 secs
“... we have defined as the “Trump dump,” which may begin almost immediately.”
Not to be confused with investors taking profits.
How’s that old England economy doing post Brexit? Is this one of the dumbsh*ts who predicted a market collapse?
must be short?
All these writers... If they knew what the market was going to do, they wouldn’t still be working. They’d be sipping pina coladas on their yachts.
When they touch down, we'll blow the roof, they'll spend a month sifting through rubble, and by the time they figure out what went wrong, we'll be sitting on a beach, earning twenty percent.
It seems the elitists — now mostly in the Democrat Party — conflate a “good economy” with a rising stock market. Time was the Democrats could be counted on to point out the difference.
Sure they would, but they'd be busy managing $billions instead of writing columns about how smart they are.
Well the reason for the rally is a lot more than some stats and pump priming. It is anticipation of effect of Draining the Swamp. That will unleash confidence by private investors and businessmen.
My two cents is that we miraculously got an up day yesterday, and there are many more up days to come after withstanding that day of news.
market crap is a left wing website and fake news site run by lefties.
don’t post this fake crap from a Dem patty operative .
Two things.
Marketwatch has been anti Trump from the start and never hesitates to run doom and gloom pieces with Trump as the center piece.
There is NO NEWS in this piece because all it does is recall the phrase, “Buy on the rumor, sell on the news” Of course the markets will at some point pull back. When in the entire history of the markets has this NOT happened?
Investors are always looking 6-9 months down the road and at this time they are seeing a greatly improved economy mostly due to the axing of business killing regulations put in place by the Left.
The reasons for the markets advance are based on more than hope and change. We have already seen many companies commit to relocating their mfg back to America based on DJT promises to ease the regulations which caused them to leave in the first place.
Historically the Markets are up 2 out of every 3 days and you can go back as far as you wish too confirm this stat.
Totally agree. The dynamics of this is exciting.
What we are seeing is an attempt by large cap manufacturing to placate Trumps tariffs initiative by throwing a few peanuts at the US market. What large caps are afraid of is an import tariff.
Mr. Trump slap a 20% import tariff on all incoming goods and services.
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