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Financial experts are asserting that much of the stock gains that we have enjoyed these past months is owed to the expectation that there will be major tax cuts this year.
So, the question is, what happens if that tax cuts are smaller than anticipated or the bill gets hung up in Congress?
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With or without a tax cut, the markets are likely in for a big correction within the next year or two.
Don't get too comfortable with the current values.
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Chuck and Nancy will help with the tax cuts! Even with the cuts the market has been red hot and
will have to reset soon.
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The only way Washington, D.C. Politicians have any influence on the stock market rise and falls is when their action or inaction throws a bunch of uncertainty into the mix. The markets are driven by algorithms developed by mathematicians sitting in some backrooms of the large financial firms.
I believe the market will start to reset this October. Hopefully, it won't be a drastic crash. But, just in case, I have moved most of our investments into conservative income producing and balanced funds instead of equity and growth funds.