Both DOW and S&P at new highs... but I fail to see the actual tangible backing for it. My concern is that its all based on the amount of rhetoric that's being generated at higher levels.
fake news you think? <br>the markets will need to see results as all this news gets built in to prices for sure, anyway I think the tax plan has the potential to fundamentally change business in the us hugely to the upside. so maybe when released might mean even more neew highs?
Both DOW and S&P at new highs... but I fail to see the actual tangible backing for it. My concern is that its all based on the amount of rhetoric that's being generated at the high levels.
Thoughts ?
Its clearly based on hope and expectations.
* markets expects tax relieve (and might well get them) .... this is good for NPAT and SP (imagine all these additional share buybacks companies will be able to finance).
* markets expect a big infrastructure program - pumping up public debts and lining the pockets of the rich. Still, some money might end up on company balance sheets - i.e. short term (until the debts really bite) great for the markets.
I think short term there is some base for the markets hope.
Obviously - long term the situation is not sustainable. Less tax income together with higher expenses in combination with already now crippling debts is a toxic mixture. The big crash will come, but it might be still years away.
Enjoy the dance as long as the music plays, but be very vigilant and careful ... You don't want to be caught out without chair when the music stops.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
fake news you think?*<br>the markets will need to see results as all this news gets built in to prices for sure, anyway I think the tax plan has the potential to fundamentally change business in the us hugely to the upside. so maybe when released might mean even more neew highs?
The Tax plan is definitely calling the shots at this stage--It will no doubt be good for the big companies and regulations will be rolled back for resource companies. Draining the swamp, it aint,but its still is good for investors that want to invest in it(as long as you dont think to much about the social aspect)---Its free market gone berserk
Economists have been saying all along that easy monetary policy had to have some support with fiscal spending from governments. Donald Trump is proposing to do that. I am unsure how he will pay for it as he is cutting taxes and may be hitting some sort of debt ceiling at some stage. Has the Federal Reserve said anything lately. Confirmation from Janet Yellen that the federal reserve will provide all the money required and can turn interest rates negative if need be, means there is really no limit to how high asset prices might climb.
Interesting isn't it that the DOW was at 18,259 on the eve of the US election. To fall about 800 points in the futures (as it looked like Trump would become president) to where it is today at 20,600.
That is one heck of a 3 month rally!
Interesting isn't it that the DOW was at 18,259 on the eve of the US election. To fall about 800 points in the futures (as it looked like Trump would become president) to where it is today at 20,600.
That is one heck of a 3 month rally!
Interesting isn't it that the DOW was at 18,259 on the eve of the US election. To fall about 800 points in the futures (as it looked like Trump would become president) to where it is today at 20,600.
That is one heck of a 3 month rally!
3 month rally... or... soap bubble approaching maximum expansion limits.
At some stage its going to turn into Lemming time, the question is when?
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Originally Posted by arc
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