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08-02-2016
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The Unwanted Critic
Join Date: Sep 2011
Posts: 3,639
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There will be a recession in 2017
Calling it now. 8 years of growth in the stock market, stocks are overvalued, too many people investing in companies that can't even create a source of revenue. It's prime time for a recession in the next 2-3 years based on the business cycle. First off, pushes from the left to raise federal wage standards, if implemented, means more Americans having extra money to spend(at least initially), leading to inflation. As a result, the fed will raise interest rates to try to reduce inflation. Raising interest rates hurts economic growth and often causes recessions. In addition, pushes for higher capital gains taxes will destroy the stock prices, if implemented. With high capital gains taxes, it becomes more risky to invest in stocks, due to there being less reward if stocks perform well(as it's taxed heavily). Higher wage standards also reduces the profitability of some types of businesses, decreasing their stock value. Personally, I've been saving my money I've made working, and I'm waiting for a recession before entering the stock market. In the meantime, inflation is so low that I don't really have a reason to invest, besides maybe low risk stuff. The hardest part will be figuring out when a recovery is likely and timing that. |
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08-02-2016
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Dr. Professor Moderator
Join Date: Jun 2015
Location: I’m always located somewhere
Posts: 1,205
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But higher capital gains taxes won't happen
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08-02-2016
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Registered User
Join Date: Sep 2011
Location: Chicago, IL
Posts: 1,992
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China did it better.
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08-03-2016
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michael
Join Date: May 2012
Location: Hyrule
Posts: 3,511
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08-03-2016
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: - )
Join Date: Sep 2011
Posts: 1,427
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I trust your expert opinion on this subject
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08-03-2016
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Verified ✔️
Join Date: Sep 2011
Location: Australia
Posts: 6,041
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