Will Trump murder the 10-year bull market? Since Trump’s May 5 tweet, markets were buffeted by sharp downturns and spikes in volatility. Hope turned to despair as negotiations with China broke down, prompting Trump to implement sweeping tariffs. Many feared that Trump’s latest actions may put the bull market’s longevity to the test. Unfortunately, it turned out that Trump was just getting started. “TARIFF is a beautiful word indeed” – Trump To justify his penchant for using tariffs as his primary tool to deter bad behavior of other countries, Trump tweeted the following on June 1, 2019: “When you are the “Piggy Bank” Nation that foreign countries have been robbing and deceiving for years, the word TARIFF is a beautiful word indeed! Others must treat the United States fairly and with respect – We are no longer the “fools” of the past!” Trump imposes tariffs on Mexico over illegal … [Read more...] about Will Trump murder the 10-year bull market?
Historical fed funds rate
WASHINGTON: The American private sector's mounting debts pose a "moderate" risk to the world's largest economy, Federal Reserve Chairman Jerome Powell said on Monday (May 20).With corporate debts reaching historic highs relative to the size of the economy, public comment has run the gamut, according to Powell, either warning of grave danger or waiving off such threats as "nothing to worry about."But the truth, he said, according to a copy of remarks prepared for a speech in Florida, was "likely somewhere in the middle.""As of now, business debt does not present the kind of elevated risks to the stability of the financial system that would lead to broad harm to households and businesses should conditions deteriorate," Powell said."At the same time, the level of debt certainly could stress borrowers if the economy weakens."Economists warn that after years of economic recovery and low interest rates, companies across the spectrum of US industries now frequently have debts that are … [Read more...] about US business debt a ‘moderate’ economic risk: US Fed’s Powell
Bull markets don’t die of old age PHILEQUITY CORNER - Wilson Sy (The Philippine Star) - April 29, 2019 - 12:00am After a disappointing 2018, the year 2019 has proven to be a good year for global stock markets. Last Friday, the S&P 500 and Nasdaq both hit new all-time highs. On April 26, the S&P 500 hit a record close of 2940, while the Nasdaq ended the day at 8140. Above forecast 1Q19 US GDP growth and strong earnings from some corporates, especially tech heavyweights, gave US equity indices the impetus they needed to notch new milestones. This proves that trying to measure bull markets according to seven or 10-year cycles does not work. The historic highs last week show that bull markets don’t die of old age. Near death experience before new highs Just last December, it would be hard to imagine that US stocks would make new highs this year. In December 2018, the US stock market experienced the worst … [Read more...] about Bull markets don’t die of old age