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Originally Posted by GotHereQuickAsICould
Isn't this what Republicans said about the market after Bush was elected?
I'm not trying to cause trouble, but I'm pretty sure I recall talk about how this was an expected readjustment.
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The dot.com bubble? It would be pretty difficult to come up with a scenario where GW's policies initiated that. Not as hard to call into question the moves (or lack thereof) that led up to the credit crisis. That took years and a lot of complacency to reach the point it did.
But, you might have missed my point. The market is likely to have a large correction in the not so distant future. If you equate the rise since Nov to Trumps good work, then does a fall indicate his failure? Probably not.
In the absence of some major tax reform or big infrastructure spending the market will shrug off what happens in Washington. The promise of those two things has driven certain optimism, but lately questions about the size and timing of those actions is causing doubts. Last week was an example of Trump's problems potentially delaying both tax reform and infrastructure spending.
The real issue is IF congress is willing to run big deficits (or neglect the needs of the lower economic rungs) to accomplish big spending or tax cuts that MIGHT turn beneficial in 3 or more years. .
And whether congressman are prepared to return to their states and explain how come they have slashed safety net programs and health care for the middle class to throw even more money down the black hole we call the Pentagon.
Those with sizeable assets in the right areas of the stock market will come out winners, but is that what Trump supporters want from a Trump administration?
The economy is NOT the stock market and vice-versa. Nor is a correction a bear market. I actually believe that tax reform done right can be beneficial and spending on infrastructure is a necessity and potentially pro-growth, if done right.
But, generating long term +3% GDP growth without huge deficits requires a great plan and a lot of patience. It could actually arrive around the time the Dems have the next POTUS and the GOP gets all the heat for the debt.
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