economicnoise.com / Monty Pelerin / April 16, 2017
Markets stall as Trump fails to deliver.
A dramatic post-election market rally is likely over. Markets have reversed since February.
The Market Rise and Fall Since Election
Markets were overvalued according to traditional metrics before the 2016 election. When Trump was victorious, markets soared to even greater heights.
Euphoria took hold. Expectations of what a brash, bold businessman could do in the FantasyLand known as Washington soared. Efficiency, rationality and swamp-draining were expected to replace the layers of ineptness and incompetence imposed on the economy. The penal effects of government were at least three decades old.
The belief that this process could be reversed rekindled “animal spirits.” Markets reacted in anticipation of economic improvements that would generate real wealth for companies and individuals. The Dow Jones Average rose dramatically. Then the expectations that propelled the rise began to dissipate. The chart below shows the run-up and then a month and a half of mild downturn:
Read more ... source: The Bitcoin Channel
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