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The US stock market is significantly overvalued and has been for years now.
(1) The US Stock Market has been overpriced compared to the rest of the world's stock market since 2009. Historically speaking, we are usually not this overpriced.
(3) The stock market's growth the past decade was caused by artificial Quantitative Easing.
A study suggested that 93% of the stock markets gains from the bottom in 2009 up to 2014 were not caused by the growth in companies, but rather the Fed's QE program. With interest rates forced lower, investors fled bonds to buy stocks...the Fed bought up a lot of the bonds.
When the inevitable happens and this stock market pops - who will take most of the blame? Will it be Trump if it pops in the next two years or the next president if it holds out for 2+ years? Will it be the Fed's QE? Something else?
Trump will and he knows it. Its why as a candidate he campaigned against QE and the resulting inflated markets and now as president he flys off the handle at the mere suggestion of the fed reigning it in.
Trump will get (and deserve the blame). His tax cuts for the rich have piled on more debt that will not leave much room for stimulating the economy with future tax cuts and spending. His protectionist trade policies and tariffs will be a long term drag on the economy. His instability and increasing psychosis will create uncertainty in the markets making them susceptible to large sell-offs. If the U.S. tips into recession in the next two years Trump will own it. It will be the "Trump Recession".
Trump will get (and deserve the blame). His tax cuts for the rich have piled on more debt that will not leave much room for stimulating the economy with future tax cuts and spending. His protectionist trade policies and tariffs will be a long term drag on the economy. His instability and increasing psychosis will create uncertainty in the markets making them susceptible to large sell-offs. If the U.S. tips into recession in the next two years Trump will own it. It will be the Trump Recession".
Right, it wasnt the historic levels of QE by the fud
Trump will get (and deserve the blame). His tax cuts for the rich have piled on more debt that will not leave much room for stimulating the economy with future tax cuts and spending. His protectionist trade policies and tariffs will be a long term drag on the economy. His instability and increasing psychosis will create uncertainty in the markets making them susceptible to large sell-offs. If the U.S. tips into recession in the next two years Trump will own it. It will be the "Trump Recession".
I need to ask again where the stupid in some people comes from....QE was an Obama thing and that's what the article is talking about and what is the culprit for the over valued market. Only real true sycophants and partisans will not recognize what the truth is.
Trump will get (and deserve the blame). His tax cuts for the rich have piled on more debt that will not leave much room for stimulating the economy with future tax cuts and spending. His protectionist trade policies and tariffs will be a long term drag on the economy. His instability and increasing psychosis will create uncertainty in the markets making them susceptible to large sell-offs. If the U.S. tips into recession in the next two years Trump will own it. It will be the "Trump Recession".
He likely would take much of the blame but the blame will not be his, but ours.
I need to ask again where the stupid in some people comes from....QE was an Obama thing and that's what the article is talking about and what is the culprit for the over valued market. Only real true sycophants and partisans will not recognize what the truth is.
Good thing Trump put an end to all that QE, then, eh?
Right, it wasnt the historic levels of QE by the fud
A strong case can be made that the Fed overdid it with QE. But it was responding to the worst economic collapse since the great depression. Now the Fed has slowly been tightening (much to Trump's chagrin) and it's been so far so good. No major collapse. So if the markets tank and the economy goes into recession it will be due more to Trump's policies than to the Fed policy of previous years.
I think our system of funneling money from 401K to the stock market has caused overpricing of our markets and also been a very critical component of US dominance of several industries including tech due to huge capital flows to the corporations to allow them to dominate.
I think the tail end of the Baby Boomers retiring and no longer contributing to their 401k's will precipitate a market cooling period. Of course the media will find the nearest conservative to blame when it crashes just like last time.
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