Trump wanted to take credit for this phenomenon, probably due mainly to various factors! There are seven reasons for this achievement. With that in mind, this article will briefly attempt to look at, examine, review and discuss seven possible reasons/causes for this and what it may mean and represent. Tax Reform Legislation of 2017: Although politically promoted as big news and helpful for the middle class, the biggest beneficiaries of the 2017 tax legislation were the largest corporations and the wealthiest Americans. Many believe it was welfare. , for the richest! One impact was that companies made much more money, not primarily because they increased their sales results but reduced their costs/expenses by paying fewer taxes.
Proponents of this claim that when big companies earn more, it helps others, but the job gains promised have not materialized in any significant way. As companies generated higher earnings, their stocks looked more attractive. And that’s why many investors wanted to participate. Additionally, the wealthier potential investors ended up with much higher disposable income. Artificially Low-Interest Rates: For the past few years, interest rates have been at or near historically low rates! While it made lending more affordable, it also reduced margin costs! Like bonds and bank rates, they fell out of favor due to poor performance. Cheap Money: Low-interest rates meant cheap money, and many took advantage of it by investing. Companies also discovered that they could borrow at low-interest rates, making themselves, it seems, much more attractive to potential investors. Manipulation/Day Trading: Larger investors seemed to be trying to take advantage of this by using manipulated moves; prices increased to your advantage! Because of the ease of the Internet, we’ve also witnessed a lot more day trading, which also tends to lift stock markets. Internet: The expansion of discount brokerage houses and the reduction of minimums, commissions, etc., combined with the ease of investing brought about by the improvements from the Internet, has beneficial effects, etc. how much, wishful thinking, hopeful Think speculation, and so-called advice? Strong Fundamentals/Optimism: Some optimism is warranted, especially regarding certain stocks with quality fundamentals!