With all the bankruptcy, job loss, and unrest, one would think the stock market would have a huge correction . Yet somehow President Trump is able to keep the investors positive.
Is it there’s no other place to go with capital?
Trump is not doing anything to keep investors positive, other than not being ill (reducing uncertainty) and not yet doing anything totally crazy to precipitate a national crisis.
The stockmarket is discounting Trump being gone, since that’s around 85% likely, so any claims or promises he makes about his future economic policies are irrelevant. The negative impact from a likely increase in corporate taxes under the new administration is offset by the anticipation of a large stimulus package. Plus perhaps general stability and less disastrous management of the pandemic.
Any impact on the stock market from Trump is now just a question of short term instability associated with him being incapacitated or doing something crazy before January. The only remaining substantive economic policy significance from what he says or does is the potential benefit of a stimulus package being passed now, rather than in January.
I think his ra ra USA cheerleading has a little positive impact on investors, otherwise he has not done anything substantial to encourage them.
Unfortunately, but predictably, Trump’s effect on the stock market will be seen when he goes away. It’s all good, though, because the Democrat in charge then will face the fury of the shortsighted. It is always like this. Nice, in a dependable kind of way.
It’s like a fucking dog that makes a fucking mess in a fucking room, and then runs away. Someone else comes in to the room and deals with the fucking mess. The idiot there in the house blames the person fixing the fucking mess with being responsible for the fucking mess. Republicans feel quite at home in this situation.
Crazy that they are buying corporate bonds.
Speaking as someone who depends on yearly distributions from a (partially) equity-based 401(k) to help keep me from living on cat food, I certainly appreciate the general upward trend over the past several years. But…has Trump personally done anything, anything at all, other than positive jawboning, to prop up the stock market? If so, I’m unaware of it. Jawboning alone, as an effective long-term strategy to promote growth, seems…unlikely.
Yes, this is exactly what I’m seeing from a wide range of market forecasters - a Biden win marked by higher taxes balanced by coherent stimulus spending and greater overall stability. A small overall improvement for the markets.
Even an early stimulus from Trump is likely to either be half-assed or will focus on areas where Trump himself owns businesses so he can get one last big grab at taxpayer money. If he loses he has no reason to prop up the economy - quite the opposite, for someone as petty and spiteful as he is - and if he wins he has no reason to bribe the markets. He’d have to do it in the next few weeks and, as I said, anything rushed through that quickly will be half-assed and of limited long-term value.
You got it in one. This is the inflation that has been widely predicted. But with no shortage of ordinary goods and all that money sloshing around with no place to go, they have bid up stocks.