Why are stocks at an all-time high again? Is there anything fundamentally

>>1810836
There are two thoughts people are considering.

Earnings are decent and have been for a while. The economy has some decent numbers that have continued to show solid fundamentals. Companies are improving their bottom lines and there are few actual short term crisis in view. The closest crisis are, budget (USA) results of European breakup, Student debt, Trump policy debts. All of these are fairly long term problems besides US funding which is always there anyhow.

2nd thought is trump policies will have a massive impact on earnings if he actually pushes it out for this year so people are redirecting money in order to profit from that change. Money is rushing out of weaker areas (bonds and some sectors) and into US investments that will benefit. Don't forget that the entire world can participate in this, so foreign investors also are buying up the same areas.

>>1810847
yeah bonds have been a shitty vehicle for years now, which seems to increase stocks prices even more. Maybe if interest rates are going to increase again bonds will become more viable and release some of the pressure on stock prices.

What really does surprise me is why fincancial institutions across the world are so hesitant about increasing interest rates. If the economy is doing so well, why not slowly start increasing? Or is the economy doing well solely because the money press is still running at full speed?

>>1810868
higher interest rates slows down loans a considerable amount so they try to keep pace with inflation so that it doesn't rise too quickly.

As for individual companies like banks on why they don't raise interest rates, they are much slower at doing so, because they don't want to pay out more unless they are being undercut by competition and are losing business.

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>>1810847
you forgot about the subprime auto and title loan debt.

>>1810880
a couple things keep auto subprime market under control even if it does break down.

1. Easier to repossess a car than a house.
2. There is a big difference between a 40k loan and a 350k loan.
3. There was a 2% decrease in auto auctions inventory.
4. We are in historical norms for car sales at the moment. So there isn't anything out of the ordinary for number of subprime loans out there.

>>1810880
Car debt just isn't that large of a sum, and people's livelihoods don't depend on it. A car can be repo'd and sold at current value, a car is a car. A house price can be a rollercoaster which was essentially the core of the housing crisis. People with shitty financial situations where taking risky loands on houses which were 200+% overprice, and when everyone defaulted on the debt it started the chain reaction

Also key, there aren't billions in derivatives based on auto loans. What really let the housing bubble get out of hand was the mislabeling of big bins of mortgages.

Everybody is forgetting the potentially huge impact dividend/CG tax cuts would have if trump implemented them

>>1810916
Excuse me, *trillions

>>1810920
>the potentially huge impact dividend/CG tax cuts
what impact would this have and how?

>>1810930
if you don't have to pay much or any taxes on dividends or captial gains then you can invest more in dividend stocks without hurting your bottom line.

A lot of people advocate funds that have low dividends because current tax policy has high tax rates and if your capital gains get too high then you pay a lot in taxes. For example vanguard total market index fund has extremely low capital gains and is very efficient in the current tax world unless you realize your gains. You only pay taxes when you sell basically. This lets you control when you pay your taxes.

>>1810930
increases your real returns on the stock, even though the underlying asset remains the same. I dont know what the numbers are, especially once you take into account deductions and whatnot, but it would lead to a massive increase in stock market value just from that

>>1810963
idk about the US but in Germany you pay tax (25%) over ANY capital gains, re-invested dividends too except physical swaps which only few are. In the Netherlands you don't pay any capital gains tax (sell or dividend) at all but you pay tax over the total income you have (1% of income over 25k or something). In Denmark it's even more ridiculous where they pay income tax (like 50%) over capital gains.

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>>1811000

>>1811009
forgot to mention that they list the long term capital gains on there, but in a nutshell if you sell in the same year as you bought, then you pay your tax rate based on total income. So a person in the 35% tax bracket pays 35% on capital gains.