allright, so news for any fags here who don't spend all their time jerking off to the crypto currency bubble. Trumps new tax reform he's trying to implement is going to dramatically lower corporate taxes giving them more capital to grow their businesses, if his Tax reform passes then the S&P500 will grow significantly, plus if we collectively put a significant amount of money into the S&P500 then the companies within it will have even more money to grow. If you haven't invested in the S&P500 yet then do it now before you miss this oppurtunity, if you have then i'd say double down.
Even if Trumps tax reform doesn't pass, the S&P500 has never had anyone lose money over a 20 year holding period so don't sell if you lose money, you'll profit eventually and you'll continue to get dividends over those 20 years (which you should be reinvesting). Come on Veeky Forums you can't lose with this one
You know, I keep seeing people talk about this, even in the media. At what point do people stop to realize that the reason why stocks started shooting up November, 2016, was because of the EXPECTED benefits of tax reform and infrastructure spending?
Markets price in expectations before they happen. There are many traditional general market indicators now showing equity markets to be getting ahead of themselves.
At this point, those tax reforms better turn US business earnings into something very special in order to continually justify these elevated price levels (which were exacerbated by Trump's victory, to begin with). And there are other factors at play, particularly with the Fed moving towards becoming more strict on rates and started to reduce their balance sheet.
Fundamentals have become less important over these past 9 years, and I feel they went completely out the window last year. People just buy things that "cheap", or just buy a dip. Nobody has to be selective anymore, and this leads to passive funds doing very well.
Jaxson Sullivan
I don't have a bearish bias, btw. But as a trader you're on the frontlines and notice this sort of shit happening.
The author is wrong about several things though: >The combination of a better economy, a rising stock market and a tighter Fed should mean a stronger dollar, but that is not how the currency has performed this year
That's been happening because economic data didn't show any justification for a rate hike so the market prices in expectations of no rate hikes through selling off the dollar index. And even Yellen said they'll likely go ahead with the December rate hake, even if inflation doesn't reach that 2% level, because rate hikes are thought to have a lagging impact.
>What would really worry me would be an inverted yield curve, but there is now almost an eighty basis point spread between the two-year Treasury and the ten-year.
Again, hard to make any calls from the Yield Curve because treasuries have been impacted by, again, expectations from whether or not there will be rate hikes.
The important thing to understand that yields from investments lower as prices rushes ever upward. And there are other things, besides stocks, that start to look more tempting, when all equity markets do is continually up (while fundamentals don't change at the same pace).
A paper which goes in detail into how the money from Quantitative Easing seems to have mainly gone into pumping the stock market (I'm a strong believer of this view, and it explains my 'Fundamentals have become less important over these past 9 years' comment), and may have not had the desired impact on Aggregate Demand driven GDP/ Inflation.
Jacob Murphy
Also, I may not have a "bearish bias", but after reading this aeticle that was poster here: equity.guru/2017/08/02/millennial-investors-flood-stock-market/ about millennials starting to become more involved in the stock market, well...I think it'd be awful nice to not make them buy into an elevated market. They're already so loaded with debt, as it is.
But market's gonna do what it does, just my opinion, I guess.
Joshua Nelson
Good posts
Carson Murphy
I work at a movie theater, good thing the executives who play golf and have a salad bar and a crocquet set at their headquarters are gonna get a tax cut, they must be starving over there.
Meanwhile our theater is disrepaired, understaffed and the rollover rate is 3 weeks.
Brandon King
People who think changes in corporate tax will encourage businesses to spend have obviously never owner a business. And it has zero effect on small businesses because they don't pay corporate tax anyway.
Businesses spend money when taxes are HIGH not low. When profits are high and taxes are high businesses spend to intentionally decrease their annual profit. When taxes are low that is when people want to show high profit because they can actually keep their money then .
