- The 2017 tax bill put more money into the hands of the ultra wealthy and corporations. What do they do when they get more money? They do stock buybacks to artificially inflate the value of stonks. Gladly, some of the small guys got some nice tax refunds as well, but don’t be fooled. You weren’t the main beneficiary. The effects of a large tax bill like this take many years to show in the broad economy.
- The Covid crash gave these individuals an opportunity to deploy this capital into the markets. This is why you probably missed that beautiful bottom in March of 2020. Institutions know the importance of buying the real dips. 1-5 percent corrections are nothing.
- The CARES Act, Trumps second stimulus package (I can’t remember the name), and Biden’s American Rescue Plan threw money into corporations as well! Gladly, this time, the average consumer also got to get in on the fun. Crazy unemployment benefits, stimulus checks, loan forbearance and so on.
- Fed tapering is coming (I’ll add more later)
- The Chinese housing crisis is unfolding (I’ll add more later)
This bull run can’t continue forever. We’re about to experience the largest boom bust cycle ever. No, I can’t give you a timeline… But, I can tell you that I just sold my 2019 Honda Civic SI for a profit. That is a phrase no man should ever be able to say. One month later, used cars finally started a down trend.
I’ll add supportive data later, but I have to go to work! No matter what you believe, best of luck! Invest wisely. 😀