02-09-2018, 03:41 PM
This is exactly what happens when you throw gas on an economy that is already booming.
When you pass massive tax cuts at the same time you pass the largest spending bill since the stimulus package used to get us out of the last recession you are going to get inflation. When you get inflation investors will pull out of the stock market and invest more in bonds.
The stock market was booming before Trump arrived. Corporate profits were at record levels under Obama. So it is questionable how much credit Trump should get for the rise in the stock market. But it is clear that his policy of massive tax cuts combined with massive spending increases has fueled the fear of inflation that is effecting the stock market.
When you pass massive tax cuts at the same time you pass the largest spending bill since the stimulus package used to get us out of the last recession you are going to get inflation. When you get inflation investors will pull out of the stock market and invest more in bonds.
The stock market was booming before Trump arrived. Corporate profits were at record levels under Obama. So it is questionable how much credit Trump should get for the rise in the stock market. But it is clear that his policy of massive tax cuts combined with massive spending increases has fueled the fear of inflation that is effecting the stock market.
