Tax cuts can have powerful effects on company — and therefore market — valuations. If you think there is no substance behind the relentless rise in US stocks this year, think again. Having said that, it doesn’t rule out a sizable correction taking place. There are two scenarios to look out for here.
Content production company Big Un Ltd [ASX:BIG] rose 6% today on the ASX, reaching $4.24 per share.
Snap Inc. It was billed as the next big tech stock that had investors frothing. The next Facebook Inc or Google. Unfortunately, It’s been a rough year for the company and for shareholders. It could get worse before it gets better. The earnings report is in and, well, things aren’t looking good…
A frenzy of drilling in shale gas fields across the country over the past decade has put the US within arm’s reach of achieving energy independence. Gas prices are at record lows, and electricity prices are falling. The US economy is booming right now.
As the world’s largest stock market (the S&P 500) continues to trade near record highs, you’d assume the US economy is strong, right? The market is adjusting to ‘lower for longer’ interest rates. As long as economic growth doesn’t slow too much, this is the primary reason why stocks will remain elevated.
The US argues that Beijing forces US companies into giving away Intellectual Property as the price for doing business in China. Stealing business ideas is one thing, but it’s the deeper technology insights the US wants to protect. How Trump reacts to this is the big unknown.
The report found more than six million US adults will have their personal bankruptcies disappear over the next five years. That negative credit history has meant that banks have been unable to lend to those consumers. It means banks can start lending again, which will start greasing the wheels of economic activity once more.
If Donald Trump was a start-up, he’d be the perfect disruptor. As Trump has shown from day one, it’s dangerous to bet against him. Maybe the smarter thing to do is to bet with him? If so, tax cuts and infrastructure spending could prop up the US economy for a few years yet.
Equifax led itself like a lamb to slaughter. Two major security breaches, millions of peoples’ details leaked, insider trading, an FBI investigation, they’ve got it all. A big, fat, juicy scandal. Clearly companies like Equifax can’t be trusted with our data. Fortunately the future may have the solution; the blockchain.
Bitcoin for the masses... It’s a tantalising prospect for the crypto community at large. Whether you already own bitcoin or want to get involved, the latest rumblings from Wall Street should be good news.