What do you consider a potential crash coming on US markets, similar the 1987 one??
Seems like there are no buyers, and maybe the markets won't like another rate hike
What do you consider a potential crash coming on US markets, similar the 1987 one??
Seems like there are no buyers, and maybe the markets won't like another rate hike
Folk must have board the unprecedented (in modern times) YoY increase the primary USA indices experienced last year, because of the Trump pump. Nasdaq up circa 40%, certain FAANGS up 50%. The only real reason irrational exuberance happened was due to the anticipated tax cuts. Earnings were good and difficult data was not supportive.
Folk also need to take on board that close on 80% of corporate debt, raised by substantial corps from 2010 - 2018, went into inventory buying and not investment into, as an instance, plant and machinery and technologies. Buying up inventory (when the base rate was lower than 1 percent) ergo making it scarcer, led to the massive index climbs, witnessed from 2010 onwards.
Now we are at a situation were USA interest rates are predicted to rise to 2.75 percent. Cheap borrowing is finished, before the year is out. So that the Fed and FOMC includes a choice markets, or the bond market and wider market? They are painted into a corner and far Jerome Powell doesn't seem to be the bagman of Trump.
Originally Posted by ;
There will be no US stock market crash at the moment.
The actual correction is that the fight of this Wall Street using the new FED chair which occured many times previously.
So, the one in the 1987 was not a wreck. . .it was due to Greenspan!!!Originally Posted by ;