Prediction: The Trump Bull Market Will Soon End -- But These 2 Stocks Will Keep Winning Anyway
These stocks may deliver gains during any market environment.
Prediction: The Trump Bull Market Will Soon End -- But These 2 Stocks Will Keep Winning Anyway
Overview
The S&P 500 has roared higher over the past three years -- and since President Donald Trump's inauguration in January of last year, the famous benchmark has advanced more than 23%. Investors have rushed to buy high-growth players, particularly in innovative areas such as artificial intelligence (AI) and quantum computing.
And a new batch of growth companies has also rushed to take advantage of investors' appetite for high-growth stories. AI chip company Cerebras Systems recently completed the biggest initial public offering of the year, Elon Musk's SpaceX this week aims to launch what may be the largest IPO ever, and AI lab Anthropic earlier this month filed confidentially with regulators for a market debut.
Details
All of this is fantastic and is supportive of further stock market gains. But... my prediction is the Trump bull market may end soon. The S&P 500 Shiller CAPE ratio shows that stocks remain around their highest valuation level ever, and historically, this has led to declines. Meanwhile, inflationary pressures persist, as we can see through rising energy prices and increases in the Consumer Price Index (CPI).
Source
Originally published at www.fool.com.
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