Posted on 10/20/2017 9:04:57 AM PDT by SeekAndFind
The stock market doesn't revolve around Donald Trump, regardless of what the president tries to claim.
This much should be clear to anyone who's enjoyed a seemingly endless series of record highs, even as Trump has failed to make progress on the policies he's been proposing for months.
Sure, politicians and their supporters like to take credit for good news, no matter where it comes from. Treasury Secretary Steve Mnuchin even went as far as warning on Wednesday that the market would sink if Trump's tax plan weren't adopted because, he said, it's responsible for recent market records.
And it's true that Trump inspired a rally immediately after the election — something Business Insider noted in a recent assessment of the president's market proclamations — but for the past several months, other factors have lifted stocks to all-time highs.
Wall Street certainly agrees. In a recent note to clients, Credit Suisse's chief US equity strategist, Jonathan Golub, lamented the undue credit Trump seemed to be getting for stock records. Michael J. Wilson, a Morgan Stanley equity strategist, said earlier this week that Trump's tax plan hadn't yet priced into the market.
But just to make sure, Business Insider spoke with the managers of three multibillion-dollar funds, and they all say the so-called Trump bump has faded. While they think any tax plan that Congress passes could renew the president's influence on stocks, they credit the records to factors outside the president's control.
And interestingly enough, they each provided a different reason, which speaks to the fact that a great deal is going right for the US market outside Trump. In fact, things are going so well — and investors are willing to ignore Trump to such a degree — that even escalating tensions over possible nuclear warfare can't stop stocks.
(Excerpt) Read more at businessinsider.com ...
1. The new records have everything to do with earnings.
2. Economies around the world have performed better.
3. The seasonal factor is playing a big role.
CLICK ABOVE LINK FOR THE EXPLANATION...
How coincidental that these factors occurred right as the Orange Monster was elected US President. No doubt the same would have happened if the saintly Hillary had been able to assume her rightful spot in history. (Oh, no, in that case the jump in stocks would have been entirely her accomplishment!)
If it wasn’t doing well, Donald J. Trump would be blamed.
Trump is lifting the regulatory boot off the economy’s neck. Tax reform will probably happen. And he isn’t the economy killer Hillary Clinton would have been.
the stock market is doing well because:
The stock buy backs over the years have pushed prices up.
The low interest rates give yield chasers no where else to go.
The Baby boomers have almost no retirement savings and they are playing “catch up” by taking horrible risks with their retirement money.
Because, on balance, Trump is pro-business. Consequently, the folks who run American Business don’t have to spend half their time watching their backs from the likes of Hillary and Obama. They can focus on making their business prosper.
Cognitive dissonance. The results do not match the criticisms, and the criticism seems to be badly misplaced. addressing the very things that have proved to be the greatest strengths.
Some people just cannot stand prosperity.
So they go out and try to invent adversity, where none had existed.
“The low interest rates give yield chasers no where else to go.”
IMHO, I think that plus the magic printing press via Bernanke and Yellen are the the root of this.
I read and article recently talking about Yellen’s portfolio is 100% invested in Wall St.
President Trump’s Accomplishments …. So Far
• Appointed conservative Neal Gorsuch to Supreme Court
• Mike Pence as vice-president
• Record high stock market
• Removing abortion benefits from health care
• Allowed health insurance to be bought across state lines
• Brought many jobs to US, stopped jobs from leaving
• Economy up higher than any time in 8 years of Obama
• Winning war against ISIS … Obama said not possible
• Ended Paris Climate Accords for USA
• Confronting N Korea about their threats
• Reassessing Iran Nuclear Accord … making Congress responsible
• Building a wall
• Illegal immigration down 70%
• Getting European countries to pay their share of NATO
• Renegotiating trade deals that are bad for USA (NAFTA, etc.)
• Rebuilding military and military morale
• Called out Bergdahl as a deserter … court confirmed
• Showing respect to members of police, fire, military
• Improving taxes and tax rates
• Called out NFL for their unpatriotic demonstrations
• Called out fake news sites (CNN, etc.) for their fake news
And (most of all)
• Prevented Hilliary from being President!
***the Orange Monster was elected US President.***
An older and more mature DOC SAVAGE, THE MAN OF BRONZE!
Stocks are priced according to sentiment for what is going to happen six to nine months down the road. Since Trump has taken office he has rolled back in the past 9 months innumerable business strangling regulations with the promise of more to come. This has caused consumer confidence and business confidence to be a 15 and 17 year highs and this in turn has caused traders to buy in anticipation of greater profits to come because in the end it is corporate profits that drive the Dow and this is what the traders and plain folks like me are seeing down the road
> The low interest rates give yield chasers no where else to go. <
That’s it. Everything else is secondary, IMHO.
You want to save money for retirement? But you don’t want to worry about losing money? Years ago, the solution was easy. Buy long-term bank CD’s yielding, say, 8% a year. Problem solved.
But today those CD’s are paying around 1%. You are not even keeping up with inflation. So you want to save money for retirement? Put on your worry hat, then buy stocks. What other choice do you have?
Who says Trump is doing terribly the media
Oh, you will hear a ton of options. One need only watch Fox news or Fox business during the day. You would think the end of the world is nigh and gold and silver are the only places to go.
One of the most humorous things is that I put a very, very small (relatively speaking) percentage of my savings into Bitcoin when it was $86. That tiny percentage is now the vast majority of my savings.
I’ve been tapping that (and putting aside uncle sam’s take) and paying everything off. At the current pay off rate, I will be completely free by the end of next June. That is several years earlier than I thought.
And yes...it could fall to zero and that would suck. Except that I’ve been moving equal parts into the stocks and bullion. So, the original amount is there, plus a huge gain.
I call that dumb luck.
True, all of them.
> I call that dumb luck. <
And that’s why you will never get very far. If you were much less honest, you’d write a book “How to Become a Bitcoin Billionaire”.
Then you could run late-night infomercials hawking your book, and give $1000 seminars to suckers willing to pay for boiler-plate investment advice.
(Just kidding, of course. Folks who go that route should be in jail. And some, like Kevin Trudeau, actually are in jail.)
IMHO the implementation of Obamacare has been the largest deterrent to economic growth in the last thirty years(maybe longer). If Trump manages to correct half of the problems Obama created we could have real sustained economic growth.
Another law going into effect is electronic logging of over the road truckers. This law eliminates the old “log book” that all interstate truckers were required to carry. By going electronic, it will mean less actual driving time because they will be on he book even when they are being loaded or unloaded. This will mean that trucking costs will go up across the board. Therefore, everything shipped on a truck will go up. Your lawmakers at work.
I went through the Dot com bubble back in the 90’s. I know that isnt that long ago, but I learned my lesson. I am not starry eyed about my good “dumb luck.” I have seen it go from top to bottom a couple of times now.
The thing is, if I cashed it out the tax hit would be horrible. My basis is low three figures. So, it could drop a lot and I would still be ahead of the game.
Its like having a nice part time job. And no...I do not reccomend it to ANYONE. 99% of the people think its crazy to begin with.
Honest to God, it was a lark with a few thousand dollars that I could afford to toss. Now sometimes I pull up the chart and night and show my wife...and then we both laugh.
But turn it into a debt payment, a quarter ounce of silver, and all of a sudden you find yourself sitting nice.
He will NEVER get any credit while it is going up, but I guarantee he will get the BLAME if it starts going down.
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