Real Economy Booming Stocks not so Much

[william the wie]

No one knows for sure what is going on so here are some candidates:

The locations of the exchanges, Chicago and NYC, are noted for their massive SALT and real estate costs, which are no longer deductible. So the majority of traders are seeing deflation. The Fed is dealing with the average American's wage push inflation.

Most of the growth in the economy is from repatriation and Foreign Direct Investment (FDI). But a really big question mark is whether the US will remain the world's major market for used capital equipment. Since the US has no VAT (Value Added Tax) and relatively low tariffs foreign firms can finance real investment here through their export VAT tax deduction for shipping their older usable capital equipment here and this does not show up as Investment in the GDP equations but the knock on effects do. So a lot of growth from repatriation and FDI is showing up as inflation, not investment.

This gaming of the GDP equations has been going on since VAT was invented about fifty years ago bit not to this degree so continued confusion should be with us as far as the eye can see.

Any other causes?

 

[Mac1958]

No one knows for sure what is going on so here are some candidates:

The locations of the exchanges, Chicago and NYC, are noted for their massive SALT and real estate costs, which are no longer deductible. So the majority of traders are seeing deflation. The Fed is dealing with the average American's wage push inflation.

Most of the growth in the economy is from repatriation and Foreign Direct Investment (FDI). But a really big question mark is whether the US will remain the world's major market for used capital equipment. Since the US has no VAT (Value Added Tax) and relatively low tariffs foreign firms can finance real investment here through their export VAT tax deduction for shipping their older usable capital equipment here and this does not show up as Investment in the GDP equations but the knock on effects do. So a lot of growth from repatriation and FDI is showing up as inflation, not investment.

This gaming of the GDP equations has been going on since VAT was invented about fifty years ago bit not to this degree so continued confusion should be with us as far as the eye can see.

Any other causes?

I've been re-positioning client assets, selling interest rate-sensitive equities and bonds, in anticipation for growth. I've been waiting about five years for this. Once they all clear, I'll be buying interest rate-hedged bond ETF's and equity ETF's with trailing stop limit orders set at 5%. While growth and (somewhat) higher interest rates appear to be on the way, I'm definitely hedging.

The media is making too much of this, as always. They're trying to find "reasons" for daily ups and downs, as always. It's not that complicated.
.

 

[Wry Catcher]

Uncertainty is one cause for the recent market correction. With The District in chaos no one can safely predict the future.

 

[TheOldSchool]

Real economy booming? 2.3% growth for 2017 is booming? 95.5+ million out of the work force is booming?

 

[Mikeoxenormous]

No one knows for sure what is going on so here are some candidates:

The locations of the exchanges, Chicago and NYC, are noted for their massive SALT and real estate costs, which are no longer deductible. So the majority of traders are seeing deflation. The Fed is dealing with the average American's wage push inflation.

Most of the growth in the economy is from repatriation and Foreign Direct Investment (FDI). But a really big question mark is whether the US will remain the world's major market for used capital equipment. Since the US has no VAT (Value Added Tax) and relatively low tariffs foreign firms can finance real investment here through their export VAT tax deduction for shipping their older usable capital equipment here and this does not show up as Investment in the GDP equations but the knock on effects do. So a lot of growth from repatriation and FDI is showing up as inflation, not investment.

This gaming of the GDP equations has been going on since VAT was invented about fifty years ago bit not to this degree so continued confusion should be with us as far as the eye can see.

Any other causes?

I know exactly what is going on, you fucking dumbass. With the QE forever ticking time bomb, was set when Janet Yellow printed 4.5 trillion dollars of FAUX money. That bomb is now starting to show its ugly head, like Janet's, and with good news, all that zero percent interest money will start having to pay back or else tax a rate hit, so the companies that borrowed the FREE money is started to sell off to pay the debt. So good news means higher interest rates, stocks are selling, when bad news about the economy comes out, the stock market rises. President Trump inherited this mess Obama left him and he has to and will iron it out.

https://nypost.com/2016/01/17/occup...-massive-transfer-of-wealth-to-the-1-percent/

 

[william the wie]

We are getting a budget surplus GDP growthrate that will put us in budget surplus so think again or think a first time without the talking points as a substitute.

 

[Toddsterpatriot]

No one knows for sure what is going on so here are some candidates:

The locations of the exchanges, Chicago and NYC, are noted for their massive SALT and real estate costs, which are no longer deductible. So the majority of traders are seeing deflation. The Fed is dealing with the average American's wage push inflation.

Most of the growth in the economy is from repatriation and Foreign Direct Investment (FDI). But a really big question mark is whether the US will remain the world's major market for used capital equipment. Since the US has no VAT (Value Added Tax) and relatively low tariffs foreign firms can finance real investment here through their export VAT tax deduction for shipping their older usable capital equipment here and this does not show up as Investment in the GDP equations but the knock on effects do. So a lot of growth from repatriation and FDI is showing up as inflation, not investment.

This gaming of the GDP equations has been going on since VAT was invented about fifty years ago bit not to this degree so continued confusion should be with us as far as the eye can see.

Any other causes?

I know exactly what is going on, you fucking dumbass. With the QE forever ticking time bomb, was set when Janet Yellow printed 4.5 trillion dollars of FAUX money. That bomb is now starting to show its ugly head, like Janet's, and with good news, all that zero percent interest money will start having to pay back or else tax a rate hit, so the companies that borrowed the FREE money is started to sell off to pay the debt. So good news means higher interest rates, stocks are selling, when bad news about the economy comes out, the stock market rises. President Trump inherited this mess Obama left him and he has to and will iron it out.

https://nypost.com/2016/01/17/occup...-massive-transfer-of-wealth-to-the-1-percent/

With the QE forever ticking time bomb, was set when Janet Yellow printed 4.5 trillion dollars of FAUX money.

The Fed's balance sheet was already over $4 trillion before she took office.

FRB: H.4.1 Release--Factors Affecting Reserve Balances--January 30, 2014

 

[TheOldSchool]

We are getting a budget surplus GDP growthrate that will put us in budget surplus so think again or think a first time without the talking points as a substitute.

*fingers crossed*

 

[Mikeoxenormous]

We are getting a budget surplus GDP growthrate that will put us in budget surplus so think again or think a first time without the talking points as a substitute.

Well keep your head up your ass, while the rest of the country watches the turmoil, but the businessman turned President will right the wrong the faggot community agitator left him.