Is Trump causing a Stock Market Crash?
" In the business world, the rearview mirror is always clearer than the windshield." - Warren Buffett
The world has gone crazy since Donald Trump has won the United States Presidency. The stock market looked like it was guaranteed to crash on election night but has since taken off. This is a confusing idea because investors usually hesitate when something unexpected happens and lets just say Donald Trump wasn't suppose to win.
If you look back in recent history the stock market is suppose to be crashing right now. When the second Bush president took office there was the dot.com bubble bursting and when Obama took office there was the 2008 financial crisis. So where is the 2017 Donald Trump Crash?
At least right now it isn't coming. In the last week the markets are all up at least 2% and in the last month the stock market is up at least 1%. The bulls aren't letting the bears take them just yet. There are stories and financial advisers saying that the stock market is getting close to a correction. However, as long as the charts are putting in the right direction why wouldn't you keep on investing.
It is impossible to forget the history of the 21st century when it comes to stock market. The dot.com bubble and the 2008 financial crisis should be in the back of your head. But then this asks another question. How do you know when a dip in the stock market is the next correction. Because there was a dip in the stock market a week or so go but the market has since corrected itself and is still going up.
Is the next correction going to be caused by Donald Trump, Student loans, or something completely else. Until then take advantage of the good market. There are plenty of options to invest in. XLK doesn't seem to lose value. Will this continue in the next correction?
Invest with caution but don't be too afraid that you miss chances to profit.