Multi-Year Bull Run Could Be in Jeopardy
With each passing day, another "bombshell" is released that seems to increase the chaos that is currently taking place in Washington. I won't recap everything that has happened in Washington over the past week, but sufficed to say that things are not looking good for the Trump Administration. With the severity of the allegations, there is talk right now that President Trump may not finish out his term, as there are whispers of impeachment. Truly remarkable given the fact that President Trump is roughly four months into his first term as President. The Democrats smell blood in the water, while the Republican Party is trying to figure out what to do.
The bull run that started after the end of the "Great Recession" has continued through a great deal of turmoil. Anytime you think that the bull market may finally be over, it continues charging ahead.
Are things different this time?
The markets hate turmoil and uncertainty, and best case scenario the situation with the Trump Administration is going to drag on for months, perhaps years.
With all of the turmoil surrounding the Trump Administration, there seems to be a good chance that they will get little done. The Obamacare repeal and tax reform plans, which were the centerpieces of Trump's campaign platform, both seem like they are off in the distance. In fact, there is talk that tax reform could be pushed into next year.
The tax reform plan was one of the biggest reasons why the markets surged since the election of Donald Trump. With the Republican party in turmoil and Trump's Presidency possibly in trouble, all of the sectors that benefited from Trump's election have been selling off.
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The bull run that we are currently in the midst of certainly qualifies as "mature". After all, the "Great Recession" occurred in 2008-2009, and the markets have been in a bull run ever since.
Can this bull run endure chaos in Washington, as well as continued increases to the interest rate? We'll see.
Filed under: General Knowledge
