A 100-Year Curse on GOP Presidents Might Explain Why Stocks Are Tumbling

[cuban smokes]

Americans elected as president a man who was five times bankrupted with a long and repetitive historical of being really bad at making business decision, being only successful at self-promoting himself with fake facts and information. What you expected???

I expect a cluster**** ..........

 

[cuban smokes]

How sure are you it is a bubble?

Willing to put money on it?

Tell me where you think the market will be at years end....we can go DJI or S&P numbers....

And if you want to play for charity we can make it as much as you want up to say $ 2500 (my favorite charity could use a little boost)

We are experiencing a correction....a NATURAL correction

markets react to where they see things going....not where they are

with the election of Trump, the markets saw a chance of two major things happening

1. the tax cut....which is now law
2. easier regulations, which means less red tape, and less expenses for companies

both items have happened, at least to a degree

do i think the market is overheated? yep

do i think we are in store for a correction? yep

DOW is at 26117 at the moment...down 326 today

i wouldnt mind seeing it fall to approx 22-23k for a nice correction.....

it would get some of the froth out of the market, and maybe some common sense back

i have cash sitting on sidelines...waiting for pullback....been waiting for nearly 2 years now

i am reinvesting dividends, but all new money is just sitting in cash waiting for correction

https://www.debatepolitics.com/polls/308096-poll-dow-increase-decrease-trump.html#post1068116156

i called for the correction....it was necessary....and the market depending on the fed action should simmer down now

keep your hat on & enjoy the ride ........... we shall see where the Trump economy goes ...........

 

[faithful_servant]

you say tomAto, I say tomOtO .................

No I said "one" and you responded as if I said "two".

 

[MrWonka]

Gore was a coin flip. Do you really think he would have avoided a recession?

Entirely? Hard to say, but as bad? Yeah, I think he definitely would have. Gore would have used Kenysian principles, and instead implementing Tax cuts like Bush which fueled an economic bubble he would have kept Clinton's tax brackets in tact, lowering our deficits and prevented the Economy from radically overheating in the first place.

Tax cuts for the wealthy are like sending someone to a Casino with $100 and having them win early. At first, they only have a $100, so they tend to play it relatively safe. They play nickel slots, or maybe $5 blackjack trying to make their money last as long as possible. But then they get lucky and hit some kind of jackpot early on. What happens? They start taking bigger and bigger risks. They figure they're playing with house money so they really don't care if they lose it. Eventually those bigger risks come back to bite them and they crash back to reality.

Same is true of Tax cuts. You have people who are already making millions and billions of dollars every year. They already have enough money to pay for everything they could ever need and or want in life, and then you give them more. The tendency is to do the same thing. Take risks. Try and hit on ever increaingly risky investments. Start a rocket ship company, throw a bunch of money at some dot com start ups, subprime mortgages. **** it who cares, it's tax cut money. All of a sudden you got all these people making all these risky investments at the same time when it all blows up.

 

[MrWonka]

How sure are you it is a bubble?

We are experiencing a correction....a NATURAL correction

do i think the market is overheated? yep

do i think we are in store for a correction? yep

it would get some of the froth out of the market, and maybe some common sense back

i called for the correction....it was necessary....and the market depending on the fed action should simmer down now

We are now a month and a half into a massive tax cut that was supposed to stimulate the economy. Why the **** did we stimulate something that was already overheated? What exactly do you think a Bubble is? It's when you stimulate and economy that's already hot.

How can tax cuts, and ending regulations fuel an economy when despite higher taxes and heavier regulations we were already at full employment, with the economy running so hot it needed a correction? You're pouring gasoline on a fire that's already self sustaining, and you don't think that could be dangerous?

 

[gdgyva]

We are now a month and a half into a massive tax cut that was supposed to stimulate the economy. Why the **** did we stimulate something that was already overheated? What exactly do you think a Bubble is? It's when you stimulate and economy that's already hot.

How can tax cuts, and ending regulations fuel an economy when despite higher taxes and heavier regulations we were already at full employment, with the economy running so hot it needed a correction? You're pouring gasoline on a fire that's already self sustaining, and you don't think that could be dangerous?

the day Trump was elected, the market started pricing the tax cuts into equities

And the biggest reasons for the drops, is the natural cycle...the market NEVER goes straight up

it zigzags, and climbs to newer highs after periods of corrections

There has been talk of "raising" rates....it took some of the steam out of the market

That to me is a very good thing....

I am not a market expert....i have been investing in it for 40 years, but there are a LOT of people who know much more about this than i do

All i know is that natural corrections are needed in every bull cycle....and i called for a level of 22-23k back in late Jan

I am buying this week...as i think the majority of the correction is over, and i found a few equities at levels where the numbers make sense again

I am not ALL in....but sticking my toes back in, a little at a time

 

[Mithros]

Entirely? Hard to say, but as bad? Yeah, I think he definitely would have. Gore would have used Kenysian principles, and instead implementing Tax cuts like Bush which fueled an economic bubble he would have kept Clinton's tax brackets in tact, lowering our deficits and prevented the Economy from radically overheating in the first place.

Tax cuts for the wealthy are like sending someone to a Casino with $100 and having them win early. At first, they only have a $100, so they tend to play it relatively safe. They play nickel slots, or maybe $5 blackjack trying to make their money last as long as possible. But then they get lucky and hit some kind of jackpot early on. What happens? They start taking bigger and bigger risks. They figure they're playing with house money so they really don't care if they lose it. Eventually those bigger risks come back to bite them and they crash back to reality.

Same is true of Tax cuts. You have people who are already making millions and billions of dollars every year. They already have enough money to pay for everything they could ever need and or want in life, and then you give them more. The tendency is to do the same thing. Take risks. Try and hit on ever increaingly risky investments. Start a rocket ship company, throw a bunch of money at some dot com start ups, subprime mortgages. **** it who cares, it's tax cut money. All of a sudden you got all these people making all these risky investments at the same time when it all blows up.

Except that the recession happened in q3 2000. The Nasdaq crashed in March 2000. By January 2000, the dot com bubble was baked in. I don't see how anyone could have done anything to prevent it. Bush's tax cuts were passed in 2001.

 

[MrWonka]

Except that the recession happened in q3 2000. The Nasdaq crashed in March 2000. By January 2000, the dot-com bubble was baked in. I don't see how anyone could have done anything to prevent it. Bush's tax cuts were passed in 2001.

Right, that isn't the issue. That was a normal recession that you always tend to have about every 8-10 years. It was likely caused more by fears over Y2K than anything else. The big problem was that Bush used an otherwise normal recession to justify his 2001 and 2003 tax cuts that we didn't actually need at all. Those tax cuts proped up our economy when it didn't really need proping up, and ultimately fueled the crash of 2007 and 2008. That was the real problem.

 

[Mithros]

Right, that isn't the issue. That was a normal recession that you always tend to have about every 8-10 years. It was likely caused more by fears over Y2K than anything else. The big problem was that Bush used an otherwise normal recession to justify his 2001 and 2003 tax cuts that we didn't actually need at all. Those tax cuts proped up our economy when it didn't really need proping up, and ultimately fueled the crash of 2007 and 2008. That was the real problem.

Exactly. While I agree that Republican economic policies are more likely to cause recessions, the stats from the OP reflect more than that. Democratic presidents have been exceedingly lucky.