At one point today, the Dow had shed well more than 350 points as nervous investors looked to protect profits and sell shares.
President Donald Trump’s State of the Union address Tuesday evening is throwing a lot of uncertainty into both equities and the U.S. dollar, given the contradictory remarks by Treasury Secretary Steven Mnuchin’s call for a lower dollar, which was immediately contradicted the next day by Trump heralding a stronger dollar policy.
U.S. equity markets have been on a tear in the first weeks of 2018, and until Friday up by almost seven per cent in January alone.
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But now there is more than a little nervousness by some outspoken and respected voices, that a huge stock market bubble may be building.
Recent tax reform in the U.S. has done nothing but fuel the current rally, and markets yet may go a lot higher, but a significant correction may be long overdue.
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