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Originally Posted by reckless
Highnote.... your stock investments seems to be of the speculative variety. Do you think that's the best way to go forward, especially since we are in a generational buying opportunity?
The Trump presidency will prove to be a boom for all stocks, but most definitely very large capitalization companies plus well-entrenched and fiscally sound smaller and mid-cap companies sill truly benefit.
Despite the run-up in (most) stock prices since my call on November 2 to begin buying unbelievably cheap common stocks, it's still quite far from being too late to build a long-term portfolio. This bull market has just begun actually.
Good luck.
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Are you sure that this bull market has just begun? Yes, if we do actually get a 15% corporate tax rate and less regulation, it should be great for profits. Ireland cut their corporate tax rate to 12.5% and their GDP is three times better than ours.
But, aren't there uncertainties in today's market that didn't exist years ago? For instance, many American companies have greatly benefited from emerging markets in China, India, South America. Are those markets going to stay strong? The Fed used quantitative easing to artificially keep the stock market from falling. And for the past twenty years the market has gotten used to a very low prime interest rate. Once these new economic policies kick in, the Fed will almost surely have to continue to raise interest rates to protect against inflation. How will the market react to higher interest rates?
I'm not trying to be argumentative, I'm just curious what people think about this. We had the second most severe economic collapse in history and the stock market kept going up. Can it go down in good times?
