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Post-election stock crash? EconoMeter panel weighs in


Friday, October 21, 2016

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Wither stocks after the election? The EconoMeter panelists offer some perspectives.


Kelly Cunningham, National University System

YES:  The “recovery” hasn’t been stimulated by low or negative real interest rates, but is solely contrived on those policies. GDP growth, productivity, business investment, labor force participation, wage growth are significantly below trend. The only strong positives are gains in stock, bond and real estate markets. Prices, however, do not reflect the true market value of assets, products, or services. Correction is inevitable and attempts to prevent it increase the coming recession’s intensity and downside.