Many eminent investors suggest that the time may be ripe for a major stock market correction.

Becky Berkman

2017-08-13 09:36:00 Sun ET

Several investors and billionaires such as George Soros, Warren Buffett, Carl Icahn, and Howard Marks suggest that the time may be ripe for a major financial market correction. The recent optimistic Trump rally has catapulted stock and bond prices by a 20% margin. This stock and bond market overvaluation seems to be a natural result of President Trump's generous pro-growth fiscal stimulus trifecta of lower income taxation, financial deregulation, and new infrastructure with corporate offshore cash repatriation. Whether the current Trump financial market rally can deliver tangible economic gains depends on the eventual GDP growth trajectory toward the target range of 2.7% to 3.3% per annum.

During the current interest rate hike, we expect most stock and bond prices to moderately react to monetary contraction and self-fulfilling prophecy in a soft downward path. This new normal scenario does not necessarily correspond to secular stagnation in the precise words of Larry Summers and others. However, it is reasonable to anticipate a reasonable financial market correction in light of the recent nuclear standoff between America and North Korea, U.S. monetary contraction, and Trump trade conservatism. Overall, geopolitical risk remains the primary source of economic uncertainty as the Trump administration seeks to maintain a delicate balance between these undercurrents for better business growth and financial stability.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.
Apple Boston

2021-03-17 20:35:00 Wednesday ET

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes. Thomas Pogge and Krishen

+See More
Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.
Jacob Miramar

2019-04-13 14:28:00 Saturday ET

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world. In its recent public bond issuance prospectus, Aramco offers the

+See More
Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.
Peter Prince

2018-06-29 11:41:00 Friday ET

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens Boots Alliance, CVS Health, Rite Aid, and many other drug distributo

+See More
The Chinese administration delivers a written response to U.S. demands for trade reforms.
Olivia London

2018-11-25 12:37:00 Sunday ET

The Chinese administration delivers a written response to U.S. demands for trade reforms.

The Chinese administration delivers a written response to U.S. demands for trade reforms. This strategic move helps trigger more formal negotiations between

+See More
Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty.
Charlene Vos

2019-07-17 12:37:00 Wednesday ET

Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty.

Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty. Both European Central Bank and Bank of Japan may consider

+See More
Trump administration imposes 20%-50% tariffs on Turkish imports due to a recent spat over the detention of an American pastor.
Apple Boston

2018-08-11 14:35:00 Saturday ET

Trump administration imposes 20%-50% tariffs on Turkish imports due to a recent spat over the detention of an American pastor.

The Trump administration imposes 20%-50% tariffs on Turkish imports due to a recent spat over the detention of an American pastor, Andrew Brunson, in Turkey

+See More