No. of Recommendations: 3
Wall St loves tax cuts.
Yeah, the exuberance of the market, upon Trump's win, was somewhat rational. His tax cuts that hugely benefitted corporations are due to expire in the not too distant future, with a big negative impact on profits. Now, presumably, those tax cuts will be extended, profits will stay higher, supporting higher stock prices.
Correct me if I'm wrong on this, I'm going off memory.
I'm planning on sitting tight with my stock market investments, because I've mostly not been good at successfully exploiting any notions I've had about market timing in the past. I.e. I got mostly out of stocks ahead of most of the Covid drop, seeing the global pandemic blossoming and damaging the world economy fairly early on, but then I didn't get back in until after the market had recovered, thinking that the bottom had to go lower than it did, given just how wretched the global economy was at the time. So, net negative on that move, though perhaps my risk was lower than market risk.
Right now, I don't see any imminent threat to stock market prices. Could be that go-go times are coming again, at least for a while. Seems more likely than a drop.
Of course something will happen to turn the market around at some point, but for now, the traffic light seems set to green. That will eventually change, when signs of the next recession show up, perhaps.
