Wall St. misreading Trump, market bloodbath is imminent: Stockman

[HAB911]

Former top federal budget official David Stockman has a stark warning for investors: There's going to be a disaster in Washington and you're not going to see it coming.

Stockman, an ardent critic of President Donald Trump, has strong doubts that the rosy view investors are taking on the economy can hold water in the near-term. As usual, he didn't mince words when explaining his perspective to CNBC.

Last week, the Dow Jones Industrial Average and S&P 500 Index jumped following Trump's speech to Congress, with markets growing more bullish about the Trump policy agenda. Yet since Wednesday, both indexes have failed to continue the trend of new highs.

The stall in the rally has Stockman, former OMB director under the Reagan administration, labeling Trump's address as "irrelevant" to what will happen to the market and the economy.

http://www.cnbc.com/2017/03/05/wall-st-is-misreading-trump-and-a-market-bloodbath-is-imminent-stockman.html

[yodermon]

1. +1. Does anyone think donnie is going great to raise the debt ceiling?

FU are pending.

[BumRushDaShow]

2. They are probably going to try to distract from that

and then sneak a vote in to go on and do it anyway.

[BSdetect]

3. The snouts are back in the trough with their fast frequency trading and

deregulation.

What could go wrong.

Sadly the super rich rip off the market if it goes down. Panic selling creates opportunity.

They even brag about that.

If you sell you pay taxes. Recovering that can take years.

The real wealthy can afford to wait that out and buy cheap with either cash or margins or options etc

I've been through several such drops and sat them out.

Patience pays.

[LonePirate]

4. While I agree that the markets will correct themselves, it's tough to judge based on two days' data.

Yet since Wednesday, both indexes have failed to continue the trend of new highs.

It's wildly speculative - even for the stock market - to make serious claims based on last Thursday and Friday. I think Stockman is right but there are surely better methods to prove his assertions.

[Cicada]

5. David Stockman is not credible

He says stupid things and should be ignored.

[DemocratSinceBirth]

6. "The markets can stay rational longer than you can stay solvent."