Trump bubble coming?

[HassleCat]

The financial markets are booming, probably looking forward to easing of regulations, and the opportunity to create more risky financial instruments. There appears to be another bubble building, based on the same sort of leverage, credit swapping, etc that caused the 2008 depression.

[RKP5637]

1. My bet is it's going to go up and then crash as typically happens when republicans get into

power/office.

[flamingdem]

2. There will be a spectacular crash in about a year

said Nasty-rodomus

[bigtree]

3. most financial market dives are caused by forces, events outside the country

...something this administration is ill-prepared to deal with or address.

[PoorMonger]

4. And....

It will all be blamed on Obama. No matter the actual cause.

[eleny]

5. An interesting article in The Week

http://theweek.com/articles/663522/why-stock-market-excited-president-trump

"....Except there are plenty of scenarios where profits can go up without any accompanying growth in jobs or wages. In those cases, the economy isn't growing; companies are just extracting more of the wealth their workers create and distributing it to stock owners where it circulates endlessly."

How can that last without bursting.

[MoonRiver]

6. I'm thinking about getting out of the stock market the day after its inauguration.

[bhikkhu]

8. I got out the morning after the election

Not the smartest thing, in retrospect, but I wan't prepared for a trump win (to say the least). I figure if things go up, I'm still ok - I'll miss out on the "trump market" with a clean conscience at least.

[MoonRiver]

9. I thought about doing that too.

My husband cautioned me not to do anything knee jerk. But I KNOW our economy is truly screwed if this "election" stands. Been there done that.

[bhikkhu]

11. Definitely - been there, done that

I was happily out of the market on the last crash, though there's been enough ups and downs to wreck my nerves in between. My general rule is to not invest in something I don't understand, and I'm not sure where things are going from here.

Very possible inflation will become an issue again, as most of trump's policies can't succeed without creating inflation. In which case, I'm in decent shape owning property and having a pretty secure income. Rather than sit in cash I'll probably look at a TIPS fund, inflation protected. Not sure yet.

(btw - not much funds involved anyway, just a decent safety net of about 6 months salary).

[BigDemVoter]

7. And it will blow right when many of us are on the cusp of retirement.

Yet ANOTHER reason to get them OUT.

[backscatter712]

10. Yep. 6 months to a year of an economic candy-high, then brace for the crash...