Musicmystery
Posts: 30259
Joined: 3/14/2005 Status: offline
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quote:
ORIGINAL: servantforuse Stocks do not always go up. Since you probably don't own any, you shouldn't care any ways. The tax reform/cuts will be passed starting with lowering the corporate tax rate. Remains to be seen how much of that is substance and how much of it bubble based on hope. Global stocks are pulling everything up, primarily due to heavy investment by China, but so far only promises of infrastructure from the US. Congress, so far, hasn't been able to get tax cuts off the ground. Once they do, however, it will further our structural deficit. The dollar is weak (has been primarily falling against foreign currency indexes since the election), and the US has stoked fears again that it won't honor its obligations, making it a riskier investment choice. And at the same time, the Fed will need to inch up interest rates at each sustainable sign of growth (that they haven't this long reveals the financial uncertainty). At the same time, as Congress undoes the financial reforms that contributed to the last recession, uncertainty will again creep in (or at least should). What's going to happen? I don't know, of course. I think the bubble will stagnate and then deflate. But who knows -- perception, not data, seems to drive the US these days. I can tell you that, since global stocks were undervalued anyway, I took my bonds and some of my US stocks and moved them into global stocks. I'm now about half and half US and global stocks (with a reserve of cash and bonds, and of course a bit of real estate). In short, I'm hunkering down to wait and see, leaving myself financial options whatever happens next. Apple is now the first US company to be worth over $700 billion, by the way. That pulls averages up.
< Message edited by Musicmystery -- 7/9/2017 6:35:29 AM >
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