With eight trading sessions left in the year, the Dow Jones Industrials ($DJI) is on track to log its best round of record high closings in history, with 70 so far to help account for more than a 5,000-point advance for the index.
I realize that the corporate tax cut was already largely baked into prices by now, but why aren't we seeing more movement now that it has been passed? Within the next year or two (depending on implementation) the year-over-year for numerous corporations will see a boon. The improvement might not continue beyond the first year of its implementation, but you know there will be about a year period upcoming where quarterly and year results are incredibly positive. I can only think of a few reasons why we haven't seen such a huge increase to the markets, like:
-Investors have already put in all the money they have.
-Cryptocurrency and other non-equities have had a run up at this same time and taken a large portion of available money.
What are some actual negative reasons for why people might not be investing? I mean even if all year-over-year for these companies has neutralized in two years and we have a huge recession a few years down the line just like happens every time the government tries a trickle down theory, wouldn't traders still want to capitalize on the next year or two upcoming?
It’s not a done deal until it gets signed, which likely won’t happen until 2018.
The market has baked in all of the possible benefits but none of the negatives. The CAPE 10 is above all previous highs other than the Tech Bubble, which incidentally saw a NASDAQ drop of -82%, and just recently exceeded Black Tuesday 1929.
http://www.multpl.com/shiller-pe/
I would be more concerned about the risk of a stock investment at this level. The fact that crypto currency has become a mania should be another red flag in an already distorted “all everything bubble.”
Igy
What does crypto currency have to do with the stock market?
In case you haven’t heard BitCoin options trade. Crypto currencies have been the biggest story in financial news and quoted along with market indexes.
I guess you missed that while spreading your Nutella.
Ok, but aren’t they traded on the options exchange and not the stock exchange?
Neither is Nutella.
So we agree Bitcoin is completely separate from the stock market.
No we don’t agree. Have a Nutella sandwich and some egg nog. Call your trolling a failure.
Nutella wrote:
What does crypto currency have to do with the stock market?
Absolutely nothing
J.Moore wrote:
Nutella wrote:
What does crypto currency have to do with the stock market?
Absolutely nothing
Yeah, I know. Thanks.
Nutella wrote:
Ok, but aren’t they traded on the options exchange and not the stock exchange?
Yes
J.Moore wrote:
Nutella wrote:
Ok, but aren’t they traded on the options exchange and not the stock exchange?
Yes
Thanks, man. It nice to hear from someone knowledgeable.
Sure. Look up GBTC.
Knowledge is the financial world is fungible.
J.Moore wrote:
Nutella wrote:
What does crypto currency have to do with the stock market?
Absolutely nothing
This.
Earnings Growth: For Q4 2017, the estimated earnings growth rate for the S&P 500 is 10.9%. All eleven sectors are expected to report earnings growth for the quarter, led by the Energy sector.
Earnie wrote:
Earnings Growth: For Q4 2017, the estimated earnings growth rate for the S&P 500 is 10.9%. All eleven sectors are expected to report earnings growth for the quarter, led by the Energy sector.
The empirical support is real.
Merry Christmas to all DGTD fans...even the anti-Christ.