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Politics : Formerly About Advanced Micro Devices

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To: Jeff Hayden who wrote (1502978)11/19/2024 2:33:01 PM
From: Rarebird  Read Replies (4) of 1570913
 
When Reagan won in 1980, his supporters expected great things in terms of economic growth and the stock market. What happened initially instead was a bear market, recession and lower stock prices before all those great things happened.

Ditto for Trump.

Keep in mind that US large cap stocks are the most overvalued that they have ever been in history. Small and mid cap stocks are more reasonably valued, but they depend on the Treasury to finance their debt and in case you haven't noticed, long bond yields have been surging as of late. Plus, the Biden Administration has just escalated the risks in the Ukraine/Russian war. Insiders are selling stock like they never been before while the Public keeps on buying for FOMO. Plus, when the USD surges like it has recently, it is often an omen that the beginning of a Bear Market is around the corner

My point is that yes, it would not be all that unusual for the stock market to begin a bear market within the next couple of months. And yes, when you reduce government spending, it does hurt GDP. So, I would expect some initial pain before there is great reward.
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