It appears that the DOW is acting like a barometer on whether they believe trumpcare will pass

[still_one]

Yesterday was a perfect demonstration of that, and it looks like the same thing is applying today

[Wounded Bear]

1. They're not liking that their multi-billion dollar tax breaks are failing...

that's the main intent of the law anyway.

[unblock]

2. mainly because they're idiots. they hear "tax cut" and they slobber and stop thinking.

tax cuts might, *might* stimulate the economy under certain conditions, for instance, if you just cut taxes and let it increase the deficit. that's a form of deficit spending, which generally does stimulate the economy whether it includes a tax cut or not.

however, this stupid republican bill will also cut spending and force millions to lose insurance, which will largely offset any economic stimulation from the tax cut.

so to the extent they think the bill will pass, at best, investors should be rotating away from health care and other things poorer people spend money on and into things rich people spend money on. but over all the market shouldn't really go up much at all.

if they were thinking, that is.