Your Economy (No Politics)

[ChrisJP]

U.S. policy risk is another theme Himmelberg highlights in his note titled "Top Ten Market Themes for 2018: Late-Cycle Optimism."

Thanks for posting this article.

I really thought thanks to all our domestic turmoil and North Korea, the markets had gotten ahead themselves and P/Es would revert back to mean. Boy was I wrong but I came around in early Sept.

I think low unemployment (yes I know average working person wages suck), relatively low interest rates, and very little leverage by the entities that move the markets are what keeps the markets going higher. I know student debt and sub prime auto loans are a problem, but the people with these problems dont participate in the equities markets enough to make a difference.

The housing markets have recovered and its only a matter of time before people start borrowing against their homes to "put money to work".

If you look at Elliot Wave theory -- the third wave is short but very steep. I think this year was year one of it. So it makes sense that 2018 will be a good year too. As for 2019 .... we'll just have to see.

Chris