S&P 500 hits all-time high after Trump’s comments on Iran attack spark ‘sigh of relief rally’

I read Brexit is a go on Jan 31st, thats got to be good as well.

 

Do you have any thoughts on what would signal us investors to pull back from the market? Been loving this upswing, but it can't just keep going.

 

I don't think Starbucks, Crate and Barrell, or Cheesecake factory offer 401k's to the Democrats working for them. To those liberals this is bad news because the rest of us aren't as miserable as they are.

 

Markets generally don't like uncertainty. It is not possible to predict the future with certainty. An event or a series of unexpected events could disrupt US markets. Brexit and disruption to the EU could impact their already fragile economies. That could disrupt global financial markets. This is an election year. Normally that alone causes some amount of uncertainty. A change in the presidency would most certainly send markets worldwide into a tailspin. 33 of the 100 US Senate seats are also up for regular election. Losing a republican majority could have a negative impact on markets. There is always some risk, domestic, geo-political unknowns. Markets such as the DOW are also weighted in favor of large caps. A single heavy weight like Boeing can move the DOW by as much 50 basis points a day on unanticipated news. That in turn can effect an entire sector sometimes also impacting other related sectors.

For now our economy is strong, interest rates are low and we are at record low unemployment. GDP is still an important indicator. The USMCA deal could add as much as a half a point to GDP. If corporate revenues for the first quarter are in-line or exceed estimates, there is a good probably that more jobs will be created and companies will spend more on capital improvements. Consumer sentiment is good. There are few pundits making predictions of a recession any time soon.

During the normal life of any business cycle, growth usually slows and that will be reflected by our GDP. That doesn't mean the end but at some point, there will probably be a market correction. It might be 5%. It could be more. Some may panic, others will consider it healthy and a buying opportunity. Institutions control over 80% of all markets so as retail investors we are for the most part just along for the ride.

 

Any non-exempt, self employed or contract workers can still save in either a Roth or Traditional tax deferred IRA with or without employer savings plans.

 

More winning!

 

Reality check:

https://www.pbs.org/newshour/econom...given-ceos-a-raise-what-about-average-workers
https://www.vox.com/policy-and-politics/2019/3/1/18246233/economic-growth-workers-wages-economy