But there are a few current events ongoing that the markets don’t seem to be accounting for – primarily, the tremendous dip in approval ratings the president Donald Trump has recently incurred. Trump’s support is imploding, and only getting worse as this situation with Ukraine worsens and his political leverage diminishes. Remember, markets didn’t crash in the Seventies until Nixon’s tapes were released.
But there are other factors in play, including Joe Biden’s fall down the polls and Elizabeth Warren’s upswing in turn. There are already stories out of Wall Street about how horrified investors are of a Warren presidency. It’s only a matter of time before those types of sentiments leave an impression.
To me, the most likely scenario for the markets right now is for the markets to go down – way down – low enough that we see a final strong stimulus plan to re-boost the economy and get that final blow-off rally. The truth is democrats are going to take over at some point, and likely in the next election. The markets will not like that… be prepared.
We’ll have more to say on the subject in two weekends at the Irrational Economic Conference, Oct. 10-12 at the National Harbor in Washington. It’s really a wonderful conference, with some of the best thinkers and innovative minds I know also presenting. Get more information about the conference here, and we hope that we do see you.
The markets aren’t reacting & they should be, says Harry Dent. As the nation faces more political upheaval we should be seeing an economic equivalent, and the fact that we’re not is very concerning. Tune in for his political prognosis as the wealth effect wanes. Check out Harry’s latest bestseller, Zero Hour, here: https://pro.dentresearch.com/p/BNBZERO_0118/PBNBUB22
Posted by Economy and Markets on Friday, September 27, 2019