Only the Trump hump left to hurdle

Founder and Publisher of the Switzer Report
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Five obstacles to economic growth and stock market gains are down but we have one to go and yes, it’s Donald Trump. If we can get over this hump — the Trump hump — maybe that breakout for stocks predicted by CMC’s Michael McCarthy on my radio podcast last Monday will come to pass.

Those 5 barriers to taking stocks higher were:

  1. The Fed wanting to raise rates.
  2. APRA and its determination to reduce bank lending.
  3. The Royal Commission and its smashing of bank’s profitability via the cost of remedies and the killing off of lines of revenue, such as financial planning.
  4. The negative vibe an election always brings to business spending and hiring, as well consumer outlays.
  5. The threat of Labor’s Bill Shorten, with his policies that threatened small business with wage rises, property investors who faced negative gearing changes and investors generally who were facing a halving of the capital gains tax discount.

I did tell you I expected a Bill win and a short-term boom as investors chased property and stocks before January 1 (the proposed start date for these policies) — but I feared the cliff that investments could’ve fallen over after day one of 2020.

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