Dow closes above 20K - Trump takes credit - Left cries foul.

[jeffk]

I didn't mean to imply you did say Obama was the one who did QE. I was trying to say it was outside of what a president does and it does impact the markets.

I agree with the quote but that does not mean a bubble has formed.

The market seems to be fairly valued right now. If you look at the S&P 500 at estimated earnings of $130 for 2017 and use a multiple of 17 or 18 times operating earnings, which seems about right with low inflation you get a value 2210 to 2340. We are right in that range.

 

[Thunderflash500]

People seem to have no clue how much the market went up during Obama's 8 years in office but I'll leave that aside.

What Trump has proposed should expand the economy but there will longer term consequences. Cut enviromental regulations, cut financial regulations will grow the economy in the short term. Spend an extra trillion dollars on infrastructure will expand the economy. Strange thing to do when unemployment is at rates under 5% though. Cutting corp taxes will add to earnings. Cutting rates to repatriate dollars back to the US will bring more cash to companies and they may buy back shares or invest in new business. Should help the stock market.

The potential trade war he could start would hurt the economy.

But longer term - what will happen to the environment? Will cutting regulations lead to another 2008 type event? What will happen to the debt if the gov't increases its spending and cuts taxes. I really don't think the expansion of the my will be enough to grow the tax base to cover it.

The regulations that were cut which led to 2008 never got uncut. They just gave everyone trillions and started the game over. If derivatives blow up again and every bank is insolvent I blame Obama. And hopefully Trump throws bankers in prison if it happens.

 

[MadSquabbles500]

It will be higher by end of decade or even sooner. It has always been higher. It keeps going up and up. It can get higher depending on how much money the rich people decide to dump into it and when.

 

[NewGuardBjj]

It's speculation that he spends on infrastructure. So yeah, credit to him.

 

[Hans Gercmiov]

The left will never give Trump credit for anything positive.

 

[jeffk]

It's speculation that he spends on infrastructure. So yeah, credit to him.

Yes, it is speculation that drove up the financial sector and some other areas of the market.

With the infrastructure spending with the low unemployment and cuts in taxes should we blame him for the risks of inflation and probably rate hikes in the future too.

 

[chardog]

trump needs to tread carefully, because the bigger you are the harder you fall...

 

[HereticBD]

#wasgonnahappenanyways

 

[JonnyRingo84]

so under obama it went from what? 11 to 18k? he gets hated on for a shit economy, trump praised after 2 days.

seems legit

 

[jeffk]

When Barack Obama was sworn in on January 20, 2009, the Standard & Poor’s 500 index, a popular measure of the U.S. stock market, closed at 805 points on Inauguration Day.

Eight years later, the S&P 500 index has risen to 2,274 points after one of the great bull runs in stock market history. With Obama as president, the U.S. stock market, as measured by the S&P 500, returned 235%, or 16.4% annualized.

https://www.forbes.com/sites/nathan...he-obama-stock-markets-235-rise/#63520bcf16d1

No one realistically expects that type of growth for Trump. I'd love it. I would be happy with an annual rate around 8% or 9% for the years he is office.