Trump Dangles Juicy Carrot For Investors & Voters Alike
A clear benefit for the Dow Jones came from Donald Trump, who continues to dangle the juicy carrot of tax cuts for the middle class
Ignoring concerns about ballooning national debt, the stock market views a Trump victory in as a significant boon to equities.
That said, the White House hasn’t released any details about what the proposed tax cuts entail.
Jamie Dimon Worries Central Bank Policy ‘Trap’ Could Hurt Stock Market
Pouring a little cold water on Wednesday’s rally, JPMorgan Chase’s Jamie Dimon spoke to CNBC at the Davos summit , revealing that he harbors concerns about ultra-low interest rates.
He warned that this central bank policy “trap” could come back to haunt the stock market:
The only thing I have trepidation about is negative interest rates, QE, and the diversion between stock prices and bond prices and yield and stuff like that … I think it’s very hard for central banks to forever make up for bad policy elsewhere, that puts in them in a trap. We’re a little bit in that trap today with rates so low around the world.
Dimon is not the first person to worry about the global economy’s ability to extricate it from years of unconventional monetary policy.
Hedge fund billionaire Ray Dalio has also been vocal about the dangers associated with runaway valuations in US stocks.
Most recently, Guggenheim’s Scott Minerd doubled down on his claim that the markets look like a Ponzi scheme amid the Fed’s stealth QE.
Dow Stocks: Boeing Struggles Again, IBM Soars Post Earnings
It was a general solid day in the Dow 100, as the index was able to establish itself in the green.
With Boeing stock (NYSE: BA) in free-fall after a downgrade and another MAX delay, new CEO David Calhoun reassured investors that the US aerospace giant would continue to pay its dividend . BA shares still fell 1.5% on the day.
Apple (NASDAQ: AAPL) managed to get back on track, with 0.7% move to the upside, while IBM led the index with a 3% rally after its earnings release . Intel rose another 2.9% ahead of Thursday’s quarterly report.
Dow Inc. was a miserable performer, dipping 2.9% to drop its year-to-date return to roughly -7%.