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Is the Economy Strong or Weak?
By www.ProfitableInvestingTips.com
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The stock market is a forward
looking institution.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
That is to say investors and
traders buy and sell based on
their beliefs about what tomorrow
will bring.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
Before We Continue…
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
However, the eventual price of
any given stock always moves
toward its intrinsic value, its value
based on forward looking
earnings.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Looking forward the market has
moved up with the election of
Donald Trump because investors
have expected to see tax cuts,
infrastructure spending,
repatriation of offshore corporate
cash and a lot of deregulation.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
But not all sectors of the economy
are doing well so the stock market
advance is not spread out across
all stocks.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
And when the Trump economic
band wagon gets stuck in the
mud of its own making the market
drops back.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
No matter what the politics of the
day the US economy is what
drives stocks.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Is the economy strong or
weak? The New York
Times notes that stocks
tumble as chaos roils the White
House.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Stocks in the United States were
down sharply in midday trading.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The Dow Jones industrial
average, the Nasdaq and the
Standard & Poor’s 500-stock
index each were down more than
one percent.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Here are the reasons they cite for
the drop in stock prices.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
One) Trump firing an FBI director
after asking to have an
investigation dropped involving a
Trump advisor and Trump sharing
sensitive intelligence information
in a chat with the Russian
ambassador.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
How this affects stocks is that
investors believe that the
government will get bogged down
these issues and the economic
agenda they dreamed of will not
be enacted.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Two) Economic weakness is more
of an issue than the market would
indicate.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Most of the run up in stock prices
has been from a few tech stocks
while car makers and retailers are
hurting.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The VIX options fear index is up
20% after resting at low levels.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Investors are looking beyond the
hype and seeing a weaker
economy.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Will this be the end of the bull
market and if so how bad could it
get?
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Trump Bump to Backlash
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Remember that the market
always looks ahead.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Optimism has driven stocks up
but pessimism could take things
down in a hurry.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
CNBC looks at a possible inverse
Trump effect.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Major investors are “somewhat
cautious” as they wait to see
whether President Donald Trump
and Republican leaders on
Capitol Hill can deliver on
promises of lower taxes and
massive business deregulation,
Starwood Capital Group founder
Barry Sternlicht told CNBC on
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Sternlicht described what he
called the “inverse Trump effect”
on the economy — the idea that
uncertainty over the details of the
president’s polices is holding back
investors.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
“If I’m an individual and I know my
capital gains tax is going to drop I
might just wait to sell stuff,” and
sell into a more favorable tax
environment, he argued.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
As a result, Sternlicht said there
could be fewer real estate
transactions “until this is cleared
up.”
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
Investors also could be waiting to
sell stocks, he argued.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The U.S. economy is on a good
trajectory, but investors want to
know “the rules of engagement”
before making big money
decisions, said the chairman and
CEO of Starwood Capital, which
has $52 billion in assets under
management.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
As we have said time and time
again, investors like to know the
rules and have a plan.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The longer chaos rules in the
White House the longer business
decisions, investments and the
economy will be held in check.
http://profitableinvestingtips.com/investing-trading/is-the-economy-strong-or-weak
The down side is that if none of
the economic hype comes to pass
the correction could be significant.

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Is the Economy Strong or Weak?