Tuesday, November 15, 2016

Sooner Than Never

Paul Krugman, the NY Times Nobel Prize-winning economist, instantly reacted to Donald Trump's election: [bold added]
It really does now look like President Donald J. Trump, and markets are plunging [blogger's note: the futures plummeted 5% overnight, predicting a drastic fall on November 9th]. When might we expect them to recover?.... If the question is when markets will recover, a first-pass answer is never.
The markets dipped Wednesday morning but surged when they digested the prospect of higher spending, lower taxes, and a decrease in regulatory red tape. Now the indexes are 3-5% higher a week after the election was called for Trump, better than the infinitesimal interest earned on cash and certainly sooner than "never".

I hope Professor Krugman didn't act on his own forecast and go short. If he isn't more circumspect, he could make the Trump loser list.

The Dow (.DJI), S&P 500 (.INX) and NASDAQ (.IXIC) are all higher after November 8th

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