Forecasts:
No recession
Stocks to rally sharply
Economy to show increasing strength
Fed will raise rates at least two more times
Bonds down
Dollar DOWN as foreign exporters regain some pricing power
Gold up.
If you're looking at the deficit (i.e. how "small" it has become) then, bye, bye. You are going to be left in the dust!
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8 comments:
You should really be rooting for Bernie Mike as he's the only politician thats proposed increasing govt spending by $1 trillion roughly per year. That would be a massive windfall for stocks and the economy!
Auburn get some links in on that please if you can we should start to look at that...
Does it not depend what the spending is on ?
For example what if it is all military spending?
Auburn,
I am rooting for Bernie, but I'm rooting for Trump, too. Either, or.
Footsoldier:
Yes, it does. However, much of the spending increase is coming from higher social spending, i.e. SS, Medicare, Medicaid and now, tax refunds and interest payments. But you are correct, the "quality" of spending wil affect how the economy "looks" in the sense of how that income is spread around.
Not so sure at the Gold call. Positive-trending stock gains should produce downward pressure on Gold, as the link between Gold and Oil has been all but broken. I still think Gold ends up at around 950 before it goes back up.
Gold to Oil Ratio Historical Chart
Good chart Tom it takes a lot of oil to mine the gold... I would think at some point if oil lingers down here at $30 the energy cost savings of the miners is going to get passed on...
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