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Originally Posted by Cali Panthers Fan
^^^ The market is quite high, and most of it is based solely on the promise of policies Trump wants to put into place, notably a tax plan that could relieve corporate taxes. However, that is mostly built on the faith of the administration to get things done. As we have seen so far, getting any legislation of meaning done seems like an uphill struggle since they can't seem to get out of their own way and end up alienating their own caucus in the process.
Basically, if I were an investor right now, I'd be selling high knowing that this is a bubble based on speculation that is about to burst any second.
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Quote:
Originally Posted by Resolute 14
I doubt the 'bubble' bursts until the US economy begins to show signs of cooling down.
Like I said yesterday, the stock market hits a new record high all the time. There's nothing special that Trump is doing to cause it to happen.
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its pretty funny though... remember when trump was campaigning and never mentioned the positive jobs reports and the growth of the Dow under Obama? just wait until the market flattens or declines and he'll be disavowing it...
i am certainly no economist, however, considering Trump has passed zero legislation, the rise of the economy has simply continued a trajectory established by Obama.
Has the 'confidence fairy' simply began pumping up the Dow in the hopes of Trump's policies (mainly cutting regulation and tax cuts) will further stimulate the economy? Probably... however, this is still speculation, and therefore a bubble if the increases in the Dow aren't based on "real" growth as opposed to an "expectation" of growth.
i've personally thought the DJIA was a pretty poor metric, on its own, to determine economic growth, since its primarily a measure of individuals with financial liquidity looking to park their cash somewhere that provides a healthy financial return... Those individuals generally are not a reflection of the average citizen however...
the democrats didn't win a 3rd consecutive government because the average citizen felt like they were losing the american dream, measured on their financial realities... this was despite the DJIA hitting all time highs in the last year of Obama's administration... This is why Trump's campaign to "Bring back jobs" was so successful...