Will the Stock Market Crash?
You and many other investors are concerned about how the US will manage this transition to American prosperity and the deficit-free government. Just this past week we saw a minor corrrection as the FED speech noted persistent inflation and an unwillingness to drop rates further in 2025.
That was a depressing outlook and a promise to keep thwarting small businesses in their attempt to struggle free of government-based suppression. If you look take a look at the S&P 500 forecasts, they’re positive with up t0 10% growth (see Tom Lee market forecast). The Mag7 have been muted as analysts said a rotation to small caps would happen, but it still hasn’t. In fact, in a tight monetary policy environment with inflation, why would small business have it so good? With rates high, the Mag7 stand to perform better, particularly with AI-based productivity gains.
There is so much momentum with a strong pro-US theme going so if the markets were to slide, it would have to be something dramatic to stop it. And out of control, unaffordable government spending reigned in and terminated, that most obvious threat is being neutralized. The Republicans feel that it’s all under control, but what if they can’t get trade deficits fixed, and spending under control? And what if they intend to spend just as much to bolster US economic domination, and to use it to ensure complete strength for their government?
So many political questions that are difficult to answer. . .
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