Trump, The Stock Market, Negative Interest Rates And The S&P500
The S&P 500 has been on a tear lately, all time high to be exact. The problem is that the market isn't being driven higher by genuine purchasing, but rather as a result of share buybacks and the hunt for yield as a result of negative interest rates.
The excessive money printing in the world is driving up asset prices, and this is all going to eventually come crashing down...perhaps as much as a 30% correction in the S&P 500. #somepeoplesay that if Trump becomes president the pullback could be greater. So what is a wise investor to do? Share your thoughts in the comments section below.
I wouldn't consider myself a wise investor, but I think it's pretty clear the establishment wants Clinton and that it's going to be tough for her to get elected if the market goes to hell (since it won't be able to be used as shorthand for pretending the economy hasn't gone to hell).
So my guess is no raised interest rates or big downshifts in the market till the election. After that, all bets are off.
I also feel that the Fed would not want to raise rates before the election. Yellen isn't going to want to go down in history as the person that unsettled the market before an election. The real question is, what happens after that?