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Weekly Comic: President Trump continues to blow the bubble. Who will eventually pop it?

Published 01/26/2017, 09:06 AM
Updated 01/26/2017, 09:06 AM

Investing.com - U.S. stock markets looked set to rise again on Thursday, with the Dow plowing further above the 20,000-level amid optimism over President Donald Trump’s pro-growth policies.

Trump signed two executive orders earlier this week to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure.

He also signed orders rolling back some regulation and environmental rules in order to expedite approval of infrastructure projects.

Trump has been credited with being a major catalyst behind the Dow's impressive 10% rally since election day, with some dubbing it the "Trump Jump", as investors welcomed his promises of tax reform, infrastructure spending and deregulation.

However, recent gains have led to speculation of a near-term reversal with some fund manager likening the current stock market euphoria to the dotcom bubble, which reached a peak on the last day of 1999 and then burst dramatically.

The question remains, who or what will be the cause of the reversal.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

not pumping Air, its HELIUM its only go higher,never goes down until get it blast.
A few glitches in Implimenting trump’s policies wil cause pullbacks, disagreements w other trade patners wil cause pullbacks coz of doubt yes it’s the market, that’s what hapens, &in forex, if the fed dsn’t raise rates eg March, that may cause pullbacks, or FOMCminutes’ dovish tones, wil cause USDpullbacks,BUT, are those Pull backs enough to wipe out all the profits from buying, I don’t think so,I hope not, coz for now there is no evidence for that yet, most pull backs will be taking profits,&happy bears&swingers, but I believe it’s a bull market till there is bearish FUNDAMENTAL “EVIDENCE”, then I will be a bear, if I am wrong, I will accept&be a bear, let me tell you why markets rose, people thought trump’s victory He will go on to trade patners kicking down doors&throw a take it or leave it deal, but his speech was asuarance:&civilised approach, for now it’s a Bull market Till otherewise, if there is a bubble, then I need FUNDAMENTAL evidence first,&will ride the bear market then.
A few reasons why to buy, Yields in U.S markets are to increase e.g in equities, coz of reduced costs-coz of reduced tax(which is a cost to the company) by Trump, so with the same revenue, reduced cost, means more profits, depending with the dividend policy of the company,despite what percent it is, investing in there you will get more of tht very same percentage. Another, fed will raise rates even if they have a history not to raise according to the dot plot, they will, USD is not a currency you cld same the motivation is Cary trade, but with high rates, is will rise in Forex coz of cary, and still on rates, Banks as companies will make more margins, raising rates on its own causes capital flow to the U.S that plus trump’s policies are all reasons of a Bull U.S market,Trump may not achiev 100% of what he promised, but he will achieve some whatever %that is, These are all Fundamental reasons to be a bull, now Bears what you got, NOTHING,
Bears wake up,Buls are taking over,Period,every trend UP/DOWN, has a retracement, the U.S elections moved the markets so much november to december, , there had to be a pullback and through the holidays to inaguration was a perfect time for it, RIGHT NOW there is every reason to buy in, and "NONE" not to, "except" speculation from Bears who never lose Hope. Those who were bearish before-during and after elections esp those that wrote porpular articles about how bad it will be if trump wins, now that the markets proved them wrong,are just trying to justify articles they wrote then,accept you were wrong about it and move on,even the author of this article, what evidence do you have that this is all a buble, really, you dont. you Just cant&wont accept if you were a bear then that you ae wrong, you just cant??"WAKE UP, this is a bull market, which will have corrections, and we will be buying dips again, when fundamentals confirm@that time in the future.BUT "its a bull market", Period.
Look how the media everywhere is trying to bring down the market and america through tbeir manipulive and malicious rhetoric. Theyre anti-american and i am sick of it. They need to be STOPPED.
People aren't used to seeing a president who actually accomplishes things.
This is correct. Donald Trump is very knowledgeable in productivity! Their heads will likely spin for a while, all the time he is working. MAGA!!!
Nah the banks will keep up the momentum. Enjoy your higher interest rates!
Trump did this? I see the Fed must not be named.
Should be called the Bernanke Rally
Mabe you are wrong!
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