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Barry Ritholtz: Donald Trump Owns This Stock Market
FYI: For those looking for an explanation of why the stock market suddenly became tumultuous in the fourth quarter of 2018, you can stop searching: The answer is President Donald Trump.
Mr. Ritholtz offers valid insights to the market flips. He noted: "Now, we see broader signs that global growth is slowing. Corporate profits may have hit a peak. Economies are cyclical, and the U.S. has gone almost a decade without a recession, roughly two times longer than the average interval between slowdowns. That implies we are overdue for a slump. None of the usual signs of an imminent recession are present, but 2020-21 isn’t an unthinkable time line." >>>I suggest that part of the equity market sell is relative to the "bold" just above. Superior profits may have run their course for the time being; and that so many companies have issued hugh amounts of bonds to purchase this company or that one. Pay off of these bonds against a back drop of slowing profits is not the best forward outlook an investor would desire. I recall, not many decades ago; when some companies had decent debt/equity ratios. Today, not so sure who the few companies may be. >>>Secondly, per my recent post of POTUS lying about results of an agreement with China regarding trade and tariffs at the recent G-20 meeting; further provides cause for one to be a bit twitchy about forward equity values as an investor. Also, how are companies expected to plan for further than 4 weeks down their business road with the constant mis-directions emanating from the DC bunch.
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He noted: "Now, we see broader signs that global growth is slowing. Corporate profits may have hit a peak. Economies are cyclical, and the U.S. has gone almost a decade without a recession, roughly two times longer than the average interval between slowdowns. That implies we are overdue for a slump. None of the usual signs of an imminent recession are present, but 2020-21 isn’t an unthinkable time line."
>>>I suggest that part of the equity market sell is relative to the "bold" just above. Superior profits may have run their course for the time being; and that so many companies have issued hugh amounts of bonds to purchase this company or that one.
Pay off of these bonds against a back drop of slowing profits is not the best forward outlook an investor would desire. I recall, not many decades ago; when some companies had decent debt/equity ratios. Today, not so sure who the few companies may be.
>>>Secondly, per my recent post of POTUS lying about results of an agreement with China regarding trade and tariffs at the recent G-20 meeting; further provides cause for one to be a bit twitchy about forward equity values as an investor. Also, how are companies expected to plan for further than 4 weeks down their business road with the constant mis-directions emanating from the DC bunch.