Trump is a real estate guy -- therefore, he must be horrible at the stock market. No one can be a master of more than one world. -- in my opinion.
Despite low interest rates, there remains a large excess of liquidity in the market. There remains lots of room for increases in the stock market. If anything, rising interest rates is a statement of confidence in the economy. Although this may initially impact the markets negatively, over the longer term, markets will be more stable and continue to rise. Furthermore, his claim that he has only "dabbled" in the stock market doesn't give me much confidence in his understanding of the relationship between interest rates and market activity.
%% Good thing, i'm not too sensitive LOL ;trend= friend.Profits ride,election year tends to trump, but its hard for such an old trend to trump young or medium age trend .
And by the way he uses this idea only for his campaign, all he's trying to do is to show people around that we are in a big trouble, but how is it possible if we are in the all time high? Let's say that this is a bubble.
Earnings for S&P500 are expected to come in at around $118. Today's close 2175/118 = 18.4 multiple. Next year there are projections of $134, so 2175/134 = 16.2 Could low interest rates push up multiples?? That's for another thread.
All this stuff about "market FEELS toppy" or like a "BUBBLE"... I don't get it. Why are people not trading what they SEE. I don't feel the markets even though I have a sense for what the market may do. I trade what I see and I SEE the markets making all time new highs. If you SEE it as a top then trade that.
True -some stocks maybe a bubble.GM, DAL, BSC, LEH went belly up bankrupt/+ As far as a index or SPY popping like a bubble + worth nothing-NOT likely @ all. QQQ[aka QQQQ] crashing from $120 to bear trend to less than $20 .Thats NOt a bubble; its a bear trend.LOL [Of course stupid leverage could put any underwater] Wisdom is profitable to direct
I question the whole idea of bubbles at this stage. The US markets have been treading water for over a year now, with a couple of significant corrections. There is still lots of room for upside. But, alas, you bears will always be looking for an excuse to call the top.