CNN: Trump Making Economy Grow Too Fast

The dollar hits a 14-year high:

Luckily, CNN has broken the "problem" down for us (this is real, and not a parody):


Link: https://ca.news.yahoo.com/asia-shares-win-reprieve-bond-rout-pauses-now-004900870.html

 

Wait... He's President already? Also, I thought all the markets were set to "crater" upon his election.... I'm confused...

 

We're set to have a huge market correction, and it's going to be all Trumps fault.

 

CNN article's title is U.S. dollar hits 13 year high, not 14, and I couldn't find anything anywhere that stated Trump was "making the market rise too sharply."

http://money.cnn.com/2016/11/16/investing/dollar-13-year-high/index.html

 

Strong dollar hurts exports.

 

Market correction and inflation both coming. Inflation forces rates and rates kill housing. I don't think there is an escape. It's also necessary.

 

Never understood why it is called a correction when the market will inevitably end up higher than before the pull back.

 

And the longer we try to push it off the worse it's going to be. I've seriously considered converting all retirement to cash and just sit on it for a while.

 

Why is it inevitable?

 

Yup. He's running into a bubble just like bush

 

Yep. Need to get it over with.

 

Because the growth hasn't been due to real wealth building but a flooding of capital into the market with few other avenues to put money for a return.

I do think it will end up higher but hopefully actually to strong fundamentals and not do to government printing of money.

 

Exactly. Fundamental valuation is scrapped for now.

 

I think everyone in the world would say Amazon is bubble like and that its price per share doesn't reflect real value, and yet valuation is set at $950 per share or better.

Unless Amazon fails, I don't think anyone truly believes that price will never hit its all time high of $850 or whatever it is, again.

And if it split down to a price of $100 a share, I don't think anyone would say they'd never hit $200 a share, which is saying it would double today.

So I still don't understand "correction." Market will pull back and then explode forward until the next pull back, as it always has.

 

No, it won't. Market is made up of companies. They will struggle independently. Inflation will pound them all. Sans innovation, growing faster than average inflation is unsustainable. The innovation angle is why healthcare will fall off massively as it gets more nationalized. Terrible outcome for the world at large.

 

You don't think the market would ever return to its previous levels? That you've seen the peak, in your life time?

Because all it will take is easing of interest rates (not even to this level, just less than what it goes to when the market pulls back) and it'll be off to the races again.

 

We've done this so many times it should be expected that the market will, at some point, explode back out. And the bear markets don't even last that long. The longest was the Great Depression.

 

You have entered the Droski Zone. Stand by for Chartfest2016 XII.

 

The only chart you need is the one I posted. It shows prolonged and exploding profit after every bear market, and the profit percentage is always much, much higher than the profit lost during the bear market.

The only thing that should be done during a bear market, if you have the ability to do so, is buy more stock, because it just improves your position in the long run. And yet, everyone sells. Everyone but Warren Buffet, who is buying up all those shares at a discount.

 

I agree that in the long term it will always trend up as innovation improves.