Website design By BotEap.comIn recent years, we have witnessed a performance of our Stock Exchanges that exceeded many of those of previous periods. Although former President Donald J. Trump wanted to take credit for this phenomenon, in reality, it was probably due to a variety of factors – to a significant degree! Actually, there are at least 7 reasons for this performance. With this in mind, this article will briefly attempt to consider, examine, review and discuss 7 possible reasons / causes for this and what it may mean and represent.

Website design By BotEap.com1. Tax reform legislation of 2017: Although, politically promoted, as great news and useful, for the middle class, the biggest beneficiaries of the tax legislation of 2017 have been, the largest corporations and the wealthiest Americans! In fact, many believe that it was actually Well-being, for the richest! One impact was that corporations made much more money, not predominantly because they expanded their sales results, but rather, they reduced their costs / expenses by paying less taxes. Supporters of this claim, when large corporations do more, it helps others, but the promised increases in employment did not appear to occur, in any meaningful way! Since corporations made higher profits, their stocks seemed more attractive and therefore many investors sought to get involved! Also, the wealthiest potential investors ended up with far more disposable income.

Website design By BotEap.comtwo. Artificially low interest rates: In recent years, interest rates have historically been low or close to them. While it made loans more affordable, it also made margin cost cheaper, too! In addition, it translated to investors, who had fewer options, because the performance of fixed income investments, such as bonds and bank interest, lost popularity due to poor performance.

Website design By BotEap.com3. Cheap money: Low rates meant cheap money, and many took advantage of it to invest. Corporations also found that they could borrow, at low rates, and make themselves appear much more attractive to potential investors.

Website design By BotEap.comFour. Intraday manipulation / trading: The bigger investors seemed to try to take advantage, using steps, manipulating prices, upwards, to their advantage! Due to the ease created, thanks to the Internet, we have also witnessed much more, Day Trading, which, too, tends to lift the stock markets in general.

Website design By BotEap.com5. The Internet: The expansion of discount brokerage houses, and the reduction of minimums, commissions, etc., combined with the ease of investing, created by the improvements, from the Internet, has profit shares, etc.

Website design By BotEap.com6. Delusions: How much of the increase is based on fundamentals and quality, and how much is based on wishful thinking, hopeful reasoning, speculation, and so-called advice?

Website design By BotEap.com7. Strong fundamentals / optimism: Some optimism is justified, especially when it comes to certain stocks, on quality fundamentals!

Website design By BotEap.comThere are many reasons, the stock price has gone up! Some are deserved, others are speculative. A wise investor proceeds, with thorough consideration and conscience! Know, before investing! Weigh your approaches, based on your personal comfort levels and, based on risk / reward!

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