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Chet Ruminski Wrote:
"happen until now when finally fear (an emotion) set in about the potential effects on corporate profits of likely higher interest rates. The fear is infectious"
Schmidt, Are you agreeing that the correction was inevitable or do you think the market is more a victim of ignorance?
Just about every reputable economist has been talking about the market being overvalued and a correction necessary for the past year. I believed them. I read what they write and it makes sense to me. That's where I am coming from -- and not trying to score points on the Democratic Hub.
Trump meanwhile has been touting the market gains day after day all year long as a "report card" of his administration's policies. I do indeed give credit to Trump for some of that market exuberance...call it greed, call it ignorance, call it blind faith. It was not driven by the underlying economic factors such as Price/Earnings ratios or all the other factors that economists cite in saying the market is overvalued.
The market will probably drop some more as fear continues, and then start back up more slowly, perhaps getting back more on the longer tem "Obama trend". At least I hope so...fear can turn to panic. The "Obama trend" by the way had less to do with Obama's policies (other than the initial stimulus...that was real) over the eight years of his administration than just natural market conditions in the recovery after the panic of the Great Recession.
Presidents are given way more credit (and blame) for stock market changes than they deserve.