> The way I see it though is the markets are a big voting machine.. and they're making predictions about the future and incorporating future expectations
This is likely true because of "wisdom of crowds" (aka regression to mean of randomly-sampled human estimates).
> With the current US administration still pondering over tax plans and infrastructure stimulus packages that are promised, market may be underpriced???
The president doesn't control taxes or spending, and he can't do anything about infrastructure on his own. All he can do is use political capital to push Congress in a certain direction. So far, he's been totally unable to do that.
In terms of the national economy, the US is the same as it was under Obama -- House totally under Republican control, Senate mostly under Republican control, Janet Yellen running the Fed, no major shocks.
There's little unity among Republican Congresspeople, and even less when you include Democrats. Tax reform may be a bipartisan issue, but it's likely going to be limited to simplifying the tax code (lowering taxes while closing corporate loopholes). If all the trickle-down dinosaurs believe that higher corporate taxes will harm the economy (which it almost surely won't), then the stock market should -- if anything -- go down.
This could mean that it's underpriced, but not for the reasons you seem to suggest.
This is likely true because of "wisdom of crowds" (aka regression to mean of randomly-sampled human estimates).
> With the current US administration still pondering over tax plans and infrastructure stimulus packages that are promised, market may be underpriced???
The president doesn't control taxes or spending, and he can't do anything about infrastructure on his own. All he can do is use political capital to push Congress in a certain direction. So far, he's been totally unable to do that.
In terms of the national economy, the US is the same as it was under Obama -- House totally under Republican control, Senate mostly under Republican control, Janet Yellen running the Fed, no major shocks.
There's little unity among Republican Congresspeople, and even less when you include Democrats. Tax reform may be a bipartisan issue, but it's likely going to be limited to simplifying the tax code (lowering taxes while closing corporate loopholes). If all the trickle-down dinosaurs believe that higher corporate taxes will harm the economy (which it almost surely won't), then the stock market should -- if anything -- go down.
This could mean that it's underpriced, but not for the reasons you seem to suggest.