Outcast_Searcher wrote:From what I saw today, the markets believe inflation will be meaningfully higher under Trump.
Bonds don't like inflation. The longer term bonds (which HATE inflation) were by far the most negative.
Also, I noticed things like silver, copper, etc. were up: possibly as a hedge against higher inflation expectations.
Also, short term doesn't mean much. Looks like the Dow had nearly a roughly 1300 point swing from the futures Tuesday night to the close of the market on Wednesday.
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I have no idea if this higher inflation expectation makes sense. We had lots of new debt under Obama and that didn't seem to cause inflation. Can Trump actually spur stronger economic growth? We don't know if congress will pass anything he proposes. We don't know if his ideas would work, etc.
So long as we continue money printing Inflation is inevitable, possibly even hyper inflation.
As for President Elect Trumps tax plans they are so far as I can tell a milder form of the Reagan plan that set off a boom in USA manufacturing and employment in his first term. People around here have a tendency to forget that even in a stagnant world economy individual countries can experience growth. Note that during the last 10 years China and India have both grown considerably even as the world economy was pretty stagnant.