Trump Tax Cut enthusiasm had allowed the market to get ahead of itself…but, the market remains in a long term GLOBAL secular uptrend, since commodities bottomed in February 11, 2016. I have no idea when this correction will end. I think it’s likely to find support at the 200 day moving average (purple line on chart).
Unless fundamentals or politics drastically change, I believe we’re in a long term bull market that’s being fueled by a Commodities sweet spot. Oil, copper, ore…virtually all commodities are in a price range that’s favorable to both buyers and sellers. Therefore, consumer prices are not increasing and yet producers are profitable. It’s a GLOBAL win-win.
I haven’t changed my thoughts on this correction since last week, which you can listen to here: https://www.wealthsteading.com/257
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