Sydney Tokyo London New York
real time forex news and technical analysis
German Ifo Business Climate


This facebook comment will come back to haunt Trump

SPX News by Allie Longford on 18:46 December 27, 2016 EST

With stock indices at all time record highs, raw materials being the big winners at the end of 2016 with price increases north of 20% in many cases, something that will feed through to the price of end products next year and the dollar strength making US shares extremely expensive when purchased with foreign currency the likelihood of a correction in the US Stock market next year keeps growing.

Even if stocks managed to stay afloat in 2017 there are at least three other years of Trump in the White House when share prices can take an abrupt dip.

Not even Obama is making a big deal before his departure out of the exaggerate share prices which have just pushed the combined price to earning ratio above 26, probably because he realises people do not feel at all time record highs of prosperity around them.

However Trump, just days away from taking power, decided to take pride of an unexpected knee jerk reaction that boosted stocks higher. It really seems like a bad idea specially when the Dow Jones Industrial Average is having so much trouble to top the 20,000 mark when it is literally inches away.

It would be really fitting if Trump has marked with his facebook comment a top in the stock market. Time will definitely tell us.