Donald Trump is sliding back into the Oval Office this January, and the stock market is throwing him a welcome-back party complete with Big Macs, unlimited Diet Cokes, and (oh yeah) a massive, overpriced bull market. The Dow is puffing its chest at record highs, the S&P 500 is up 28% this year, and everyone’s acting like we’re living in The Wolf of Wall Street (minus the fun boat parties and strippers).
To some people this is just a bull market… and to others it’s the priciest stock market in its 153-year history. Owning stocks right now feels like inheriting Doc Brown’s DeLorean… it’s fast, exciting, and barreling straight for 88 mph, but there’s a strong chance you’re about to blow a gasket (or get stranded in 1955).
Right now, the economy looks great on paper. Unemployment is low, GDP growth is strong, and productivity is on an upswing. But markets that get this hot tend to have one thing in common: they don’t stick the landing. This one’s starting to feel like a high-stakes game of musical chairs where no one’s sure the music will stop… or if the chairs will hold up when it does. Yale economist Robert Shiller is sounding the alarm, pointing out that stocks are more overpriced than they’ve been since 1929. (And yes, 1929 is the one year no one wants to hear in a stock market discussion.) His CAPE ratio (a favorite tool of anyone who enjoys ruining market optimism) suggests that this bubble might be floating a little too close to the sun.
Even across the pond, the economic vibes are about as uplifting as a Monday morning alarm. The London Stock Exchange is facing a corporate exodus that’s less of a slow leak and more of a flood. Major players like Ashtead and Flutter are packing up for New York, reminding everyone that America’s financial markets remain the "cool table" in the global cafeteria (even if that table looks like it’s one bad quarter away from collapsing). Back in the States, the cracks are showing. Manufacturing is limping along like it’s recovering from a long night out, real estate is practically suffocating under sky-high mortgage rates, and the job market is getting tougher than a $2 dollar steak.
Pile on a federal debt climbing faster than Tom Cruise in that one Mission Impossible movie and post-pandemic fiscal tools that are running on fumes, and you’ve got an economy balancing on the edge like a tightrope walker without a safety net. The real challenge? Trump’s economic playbook isn’t as stacked as it was in 2017. Back then, he had room to throw tax cuts around like confetti and cut regulations for easy wins. Now, he’s facing sky-high interest rates and a debt pile that could build us stairs to the moon.
Will the Trump stock market implode? Let’s just say the odds aren’t in its favor but we’ve also had the most expensive stock market in history since George Bush was President. So maybe stonks continue to only go up? (probably not).
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