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Strategies & Market Trends : US Inflation and What To Do About It

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To: d[-_-]b who wrote (835)3/13/2019 11:29:38 AM
From: RetiredNow  Read Replies (1) of 1504
 
Well, that is correct. A stock friendly Fed and President and a divided government does seem to be the best of all worlds for stocks. If Powell is on Trump's side to help him get re-elected, then he can make it happen. I've always thought the Fed is the 900 pound gorilla in the economic room. Bernanke got Obama re-elected with his massive QE3 program in Sept'12. So Powell could do the same thing for Trump. That could bode very well for stocks in 2019 and 2020.

Having said that, what about the other scenario? Right now, most of the major leading indicators are rolling over and some massively so. The gap between fundamentals and stock prices is giant. PEs are extraordinarily stretched. All valuations metrics are experiencing a six sigma event. At this point, it seems like gambling to hold on to stocks. What is driving you to think it's better to hold on, besides faith in Trump and Powell? How can you stomach the risk?
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