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Stocks hit record highs despite impeachment — here’s the what, when, and why

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Scoreboard… Wondering how US stocks are doing? Check out the S&P 500 — the index reflects the value of America’s top 500 publicly-traded companies. Huge companies move the S&P 500 the most (Apple, Microsoft, Amazon), while little guys affect it less (think Gap, Expedia, Kellogg).

The S&P 500 rose 1.64% last week to 3,221, the highest it’s ever been
It’s up 3.5% in the past month So far in 2019,
it’s leapt a giant 28%, nearly tripling the index’s average annual increase over the past 90 years

It’s the scoreboard every company (and investor) craves to beat… because it reflects the stock market’s health as a whole. Shocked Boeing’s stock is up 1% this year? That’s actually bad compared to the average 28% increase of the top 500 US stocks. The S&P 500 is winning thanks to this hat trick:
Profits: As the global economy grows, American companies are keeping a much bigger chunk of profits than before, thanks to the tax cut (happy 2-year anniversary, tax cut).
Trade: Trade tensions with China are easing and Congress just passed a new trade deal for North America — that combo is chicken soup for business managers’ souls.
Rates: The super low interest rates the Fed has set encourage borrowing and spending — it’s the soothing CBD-something sprinkled on top.

THE TAKEAWAY
Politics doesn’t always ruin stocks…
Deregulation of financial markets in the 2000s led to the ’08 financial
crisis. But last week’s impeachment hasn’t — some political drama
messes with Wall Street, some stays on Twitter feeds. Impeachment isn’t
expected to affect corporate profits, trade, or interest rates. Plus,
economists aren’t expecting a recession next year (like they were last Christmas).

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Source: https://snacks.robinhood.com/

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