Listen to my friday, March 24, radio show and my analysis of what comes next for the stock market bubble and Trump-Republican policies now that the Obamacare repeal has collapsed. The Trump Trade (stock bubble) since November depended on Trump delivering policies, in particular corporate tax cuts, deregulation, infrastructure-defense spending, and renegotiation of free trade deals more favorable to US multinational corporations. Stocks accelerated in anticipation of delivery. Is that now in jeopardy? Will the stock market reassess and correct next week?
To Listen to the Show Go to:
http://alternativevisions.podbean.com
Or to:
http://prn.fm/?s=Alternative+Visions
SHOW ANNOUNCEMENT:
The US stock markets are recognized by a growing number of analysts as approaching, or already in, bubble territory. Yet stocks have ratcheted up another 15%-20% since Trump won the election. The run-up is sometimes called the ‘Trump Trade’. Investors have been ploughing in even more anticipating another stage of corporate profits subsidization by Trump and Republican fiscal policies—Trump proposed $6.2 trillion in tax cuts, deregulation (Obamacare, Dodd-Frank, EPA, Mergers & Acquisitions encouragement, etc.), shifting hundreds of billions $ from social programs to defense spending, and $1 trillion in Trump proposed infrastructure spending. Jack explains how expectations of the policy shift to fiscal from central bank, monetary policies from 2008-2016, is now the new strategy for subsidizing corporate profits and investor further wealth gains. Central bank monetary policy had run its course and began to develop contradictions. Fiscal policy—tax cuts, deregulation, infrastructure and defense spending—is the new strategy. US stocks surged in anticipation of the new profit opportunities. But signs Trump may not deliver have stopped investors in their tracks this past week. Failure to deliver policy may result in a major stock pullback in 2017. Jack cites various sources that the current stock market bubble has peaked.
Excellent content as usual. Please note that Ronald Reagan’s name is “RAY-gun” (not Regan/”Ree-gun”, who was Secretary of Treasury), and it’s *Victoria* Neuland (not Virginia). Looking forward to the new broadcasting equipment going to PRN hosts so the audio quality will be better than a phone.