Fiscal Drag, no matter what tax you raise, it will have a slowing effect on the economy of the country you raise taxes in. It has the same effect as raising interest rates. The Labour Government is in a tight corner, and sticky inflation is not helping the consumer as it hampers the Central Bank, ie the Old Lady of Broad Street, the Bank of England, to cut interest rates, which would put money into the pocket of the consumer and businesses. The Stock Market Bubble has not burst yet, and when it does, I would hate you to be on the wrong side of it. Let’s look at the facts. Germany’s economy is in trouble, so is Canada and now China, the second largest economy in the world, a powerhouse of trade if economic figures are to be believed. Although the Chinese economy is not in trouble, their economy is slowing although still expanded 4.8% yoy in Q3 2025, easing from 5.2% in Q2. Trump’s Tariffs are just starting to hit the world economy. It will be interesting to see if it helps boost the USA’s economy, and helps pay down the National Debt and boost jobs at home. Remember, we are going into the Holiday season only 65 shopping days until Christmas.

Fiscal Drag: Meaning in Goverment Spending

China says its economy slowed to a 4.8% annual pace of growth in the last quarter

Housing market slows amid fears Reeves will increase property taxes

‘Divorced from reality’: How Trump’s ‘micromanagement’ is undermining Congress

Homework: Gaps Exhaustion, Breakaway Continuation Moving Averages (MA) 15, 30, 60 and 100 are they acting as resistance or support, and are they converging or diverging. Trend lines for resistance and support. How many financial instruments are being squeezed sideways? Will they break up or down, or continue to trade sideways? Patterns, Stochastics. Where would you place your traded options? Would they be at the money straddles, puts or calls, one month out to three? What is your maximum loss? What is your target price? Where would you place your stops if you are not consistently making money? Maybe you should paper trade (pretend trade) until you do. Learn about time decay. Volatility in pricing. What is an in-the-money traded option at-the-money traded option, and an out-of-the-money traded option? What is the Difference between an American Option and a Traditional Option? Always ask the advice of your broker!

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