Missile Launch, Terrorist Attack = S&P Record High

by JDH on September 16, 2017

For the first time ever, the S&P 500 closed at 2,500.  Exactly 2,500.  As though someone was rigging the entire game.  Not that that’s possible.


I have no idea.

It could be that Donald Trump is the greatest president ever.  That seems implausible, but the stock market is at record highs, so what other conclusion could one draw?

I suppose a cynic would say that the Fed continues to print money like crazy, and it is that fake money that is propelling the stock market to new highs.  The average retail investor “left the building” in 2008, never to return, so it’s up to the government, and the algos, to keep the party going.  If the money printing presses are running, external events like North Korea launching missiles, or terrorists attacking, apparently have no effect.  The party will go on forever in this Fed induced buying binge.

Either that, or Donald Trump is the best president in history.

Back here in the real world, in Canada, and Toronto specifically, the real estate market continues to unravel.  Homes are selling for below asking, not way over.  Sales are down.  Listings are up.  The Bank of Canada has now increased rates twice (in July and September), and that, combined with tighter government mortgage rules, has put a damper on the real estate market.

The federal government has a plan to increase taxes.  Surprise surprise.

So with that background, will the market continue to go up, forever?

You decide.  I’m keeping some powder dry at the moment.

We are blessed with fantastic summer weather here in Ontario this weekend, so that’s it for the computer.  I’m trading the electronic screen for sun screen.

Enjoy it.  See you next week.