Here’s why the bottom might not be in YET. Here’s why the bottom might not be in YET. There are pl

[human1234]

Here’s why the bottom might not be in YET.

Here’s why the bottom might not be in YET.

There are plenty more shoes to drop imo. 

- We still haven’t seen the effects of 10% Tariffs or the Chinese embargo or the uncertainty in the economic data.

•    ⁠Haven’t seen the effects of 25% auto tariffs of Canada and Mexico, remember Canada and US have a highly integrated auto supply chain.

•    ⁠Trump firing Powell before 2026 mid terms is still quite possible. He believes he can and if the economy starts to show signs of weakens which it will, trump will put the blame on Powell either he will capitulate or trump will fire him either case putting pressure on DXY.

•    ⁠We haven’t seen the effects of Canadian, Chinese and European boycotts of US travel. Tourism is 3% of GDP.

•    ⁠Continued downward pressure on dollar and bond sells off causing rising yields and falling confidence will also increase inflation.

•    ⁠We are yet to see the impact of falling immigration, you can’t have earnings growth without GDP growth, can’t have GDP growth without population growth.

>From 1995 to 2022, immigrants and their children accounted for 70 percent of labor force growth, and over the last two years, immigrants accounted for 100 percent of the increase in the working-age population.8 Without immigrants, the working-age population will fall by about 6 million in the next two decades.

https://www.cato.org/testimony/unlocking-americas-potential-how-immigration-fuels-economic-growth-our-competitive

•    ⁠DOG layoffs still haven’t shown in the economic data. Not just fed employees but fed contractors and associated services will fall as federal government fires employees.

There’s much more yet to be priced into the market. Part of it has to do with how high valuations were S&P500 PE ratio is still at 26x trailing the mean is 16x trailing earnings.

https://www.reddit.com/r/wallstreetbets/s/M0yuvoKInL