Ray Dalio: The shift under Trump could be more significant than under Reagan

This is what happens next....

We get a big correction in the S&P500 before or shortly after the inauguration. 10-20% off the highs. Everyone panics. Trump comes in and immediately guts piles of regulation > pullback finds a bottom > market takes off.

Right now, the market is over-extended. The pullback will flush out all the weak buyers that got long on Trump euphoria. Once those hands are shaken out and Trump deregs, it's on like donkey kong bitches.
 
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