“Investing Is Not A Competition… It’s A Game Of Long-Term Survival”

Jon Alternative Media, Blogosphere, Economy, Government, Market Commentary, Politics

Authored by Lance Roberts via RealInvestmentAdvice.com,
Melt-Up Gains Traction Back in November, just following the election of President Trump, I wrote about the market entering into potentially the final ‘melt-up’ phase of the cyclical bull market.
However, while economic and fundamental realities HAVE NOT changed since the election, markets are pricing in expected impacts of changes to fiscal policy expecting a massive boost to earnings from tax rate reductions and repatriated offshore cash to be used directly for stock buybacks.
To wit:
‘We expect tax reform legislation under the Trump administration will encourage firms to repatriate $200 billion of overseas cash next year. A significant portion of returning funds will be directed to buybacks based on the pattern of the tax holiday in 2004.’ – Goldman Sachs

This post was published at Zero Hedge on Oct 9, 2017.