An Inflation Quadruple Whammy, Headlined by Trumpflation, Threatens to Crush the Stock Market
Written by Sean Williams for The Motley Fool -> A history-filled year has seen the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite romp to all-time highs. President Trump's policies areโฆ
A history-filled year has seen the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite romp to all-time highs.
President Trump's policies are driving U.S. inflation higher, which is a dangerous proposition for a pricey stock market.
Additionally, the Federal Reserve recently highlighted a new source of inflation that's absolutely vital to Wall Street's historic bull market rally.
This has been a history-packed year for Wall Street. In addition to witnessing the largest-ever initial public offering in stock market history and the swearing in of only the 17th Fed chair since the central bank's inception in 1913, investors have seen the timeless Dow Jones Industrial Average (DJINDICES: ^DJI) , benchmark S&P 500 (SNPINDEX: ^GSPC) , and growth-stock-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) romp to all-time highs.
Several factors have acted as the wind in Wall Street's sails, including the evolution of artificial intelligence (AI) and better-than-expected corporate earnings.
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But things aren't nearly as perfect as Wall Street's major indexes suggest. An inflation quadruple whammy is brewing in the background, headlined by Trumpflation -- and it's the perfect recipe to crush Wall Street's historic bull market rally.
President Trump's policies are fanning the flames of inflation. Image source: Official White House Photo by Daniel Torok.
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