Will the U.S. stock market crash?
It has to at some point. We as a nation are further in debt than we've ever been, and our government is spending our money like an out of control teenager. The housing market has fallen in a slump, and most homeowners have lost equity. The auto market is right there with it. A new Ram 1500 4x4 truely does cost half of what it did eight months ago(and their still sitting on car lots). Everyone who has a fairly new car (especially pick-ups) will now get no resale value out of their car, as you can buy new for less money than used. So now used cars are also tanking. Deflating prices screws the whole market up, and drains the pockets of those of us paying the bills. Now fuel... Fuel is the one thing more important than gold for basing the value of the dollar on. Everything in our stores took fuel to make in some, if not many ways, and to deliver to market. Inflation is now showing up because of fuel prices, and our dollar is losing it's value at the same time. People start eating in to save money, and many restraunts close. This is but just one example of what is now happening. It's a snowball effect, and with fuel prices as they are I think it will be our perpetual chain reaction downfall. I do believe that this is an artificial crises, as all the problems we have are curable, but our government will not fix it. Drilling for oil would not take 10 years to get to the pump. This is America( remember...were the country who built the impossible to build AlCan highway in six months). They won't drill. How long? I think when we all seriously start running out of money. The stock market is stange sometimes. GM lays off 10,000 people, and their stock goes up. WTF?! Doesn't anyone realize that all of these people just lost their jobs? I think it's already too far gone, and close to happening. What can you do? Learn to grow a garden, be capible of being more self sufficent, and stock some extra canned food. I hate to sound like a 1960's bomb shelter scare, but having a few extra things can't hurt. I do think it's coming, and it will be much worse than 1929 because our government is out of money, and can't raise any when the people haven't any left.
Could the Stock market crash again with the Trump presidency?
President Trump will be in office from 2017 to 2020. A 4 year window for a market crash. Personally I am avoiding equities at the moment because it has risen so much with the tech companies pushing growth. At the moment the Dow Jones and S&P 500 are at unprecedented levels. The higher you climb the harder the fall. It is certainly ripe for a selloff. Liken it to a lot of weeds for a brushfire.Attentiom is placed on Brexit, ISIS and China slowdown. These geopolitical events could trigger a major adjustment to the markets during Trump’s presidency. He is a loose cannon and some of his offhand remarks could aggravate tension globally.Yesterday the Dow futures fell 700 and Korea lost 5 percent as a result of Trump’s surprise victory. I feel this is mainly noise and doesnt affect the value of the companies. But the market never trades at book so the premiums baked into the stock prices will dwindle under a seemingly unstable presidency.
What will happen in the stock market now that the Democrats have taken the House in the 2018 midterm elections?
Thank you for your question, JeffreyStock markets reflect investor sentiments, so I expect turmoil and a flattened growth curve now that the Democrats have the power to increase uncertainty by controlling the fiscal levers in the House.Let’s unpack that a little. Remember when President Trump was launching his tariff wars? The universal “consensus” among media talking heads was this would lead to an economic disaster. At exactly the same time, the stock market was surging. this suggests that investors understood that the US had a lot to gain from the tariff “wars”, much like massively shifting the “narrative” around Iran, the DPRK and the Paris Climate Agreement also had little effect on the stock market.The reason CNN and Paul Krugman, among others were 100% wrong is the investors are not tied to a narrative, or live in a self induced bubble, but actually operate in the real world, where there are causes and effects, and careful observation of cause and effect, rational calculations of Return On Investment (ROI) and other metrics actually count for something.Now that the Democrats have taken the House, investor confidence will grow cold. The Democrats have spent the last two years promising to disrupt the Administration, reverse taxpayer gains and reimpose regulations on the economy, all in opposition to President Trump’s desire for an economic growth rate of 5%. Investors don’t like abrupt changes to taxes or regulation, since it makes rational TOI calculations difficult. The greatest example in American history was the “Capital Strike” of 1938. This was the worst year of the Great Depression, and caused because businessmen simply refused to invest any more given the constantly shifting and changing regulatory and legal landscape of the “New Deal”. No one could tell what was going to be tax or regulated, or indeed what might suddenly be declared illegal, so they simply stopped, and lay down tools. A similar situation explains the extremely sluggish economic growth from 2008–2016.Millions of small investors now have their investments, savings and 401K’s in jeopardy, so in effect, the Democrats have now hardened another source of opposition to their Progressive notions and themselves as a Party. 2020 should be very interesting indeed.
How did the Stock Market crash of 29' set of the deep and prolonged Great Depression?
A Republican was President. Coincidence, I think not.
When the stock market crashes hard and is totally wiped out will we blame Capitalism?
I am afraid that people are going to blame Capitalism for the crash when it couldn't be further from the truth. Keynesian Economics is not true Capitalism and as a matter of fact its closer to Communism. Communism is defined as central planning which is exactly what Keynesian Economics is. Its hard to be a billionaire in a true Capitalist Society. Capitalism does away with inequality and poverty by allowing people to do what they want. It gives you a choice to make money any which way you want. The problem is reaching a pure Capitalist society when you have way too much regulation. Monopolies and Oligopolies are not Capitalism. They prefer Communism which is why they are in China right now. In the past the leaders would destroy and dismantle any company who had sexual relations with Communists. Unfortunately that is not the case anymore cause our Politicians are now bought and sold on the market. If you wanna learn more about real Capitalism. Check this out. http://mises.org/resources.aspx?Id=0689e352-ef3d-4f37-815f-f6f67385aebc
Would the stock market have to crash or would unemployment need to decrease under Trump for Democrats to get votes again in elections? What drastic change usually occurs for a party to get momentum like Republicans have now after Obama?
Momentum? I think that that word means something other than what you think it means.There has been a steady streak of Republican losses in off year and special elections. Virginia, New Jersey, Alabama, all have gone against Trump and his party. A seat in Pennsylvania has gone from overwhelmingly Republican to a tossup.The generic poll for next year’s House elections has the Democrats up by 8–9 points, and widening.Are Democrats Or Republicans Winning The Race For Congress? Handicappers are placing more and more Republican seats into “Probable Dem Gain” column.Even Speaker Ryan’s seat is up for grabs.House 2018: 26 Ratings Changes, All in Favor of Democrats The Republicans are predicted to lose their majority now, and by increasing increments as trends continue.THAT is momentum.