Market direction after corporate tax reform

Market direction after corporate tax reform

After corporate tax cut, what is the markets next direction?

Is it going to be up, getting into a new bull market?

Obviously not, at least not so soon. The damage from where we are coming from is big, it has not completed its cycle. Through all these stimulus packages and announcements government is making things more worse. They are not letting the market have its own direction.Economy has slowed down, it is not because of taxes or liquidity or any such government issues. In simple words, it is because the economy has become lazy and have to rejuvenate and think differently.

We cannot keep blaming that all that which is outside of me is against me, that is the reason I am not growing. What is the effort we have taken for growth. On one end there is disruption doing its rampage on the mankind. Giving a nightmare of what he will do for his living when machines take over all the work.

There is a need to become creative, accept the reality that change has come bringing in the need to innovate. We cannot keep running same old mill, churning what is now a junk or near to junk products and expect business to be normal. In all areas of the economy, need for change has penetrated. Unless people realize that, take action and get to a solution mode, it will not look rosy on the other side. With all the stimulus packages, the government has made the normal working of the markets disrupted. They have killed traders with regular surprise news flows. Now, traders will shy away from the markets.Stay out, work their next plan to strike, that strike will be a terrible blow to the markets.It will take time to happen. In the meantime, markets will get into sleep mode. Will lose direction, bring more pain to those traders who will be left there to venture out.

The next opportunity on the down side will be big, if it is not going down and changing direction from here? The build up of strength will happen at current level and then market will take direction.

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Ramesh Sigamani

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