Freedomworks Chief Economist Steve Moore discusses how the top 1% pay nearly half of all federal income taxes in 'The Bottom Line.'
president joe biden brags about the recent stock market rally. You're right that the stock has been up for the last 14 months. The S&P 500 reached 5,000 points for the first time in history. That's up from 500 about 30 years ago.
Even with all our problems, America is the unrivaled alpha male nation. The dollar is the only currency that matters globally (the euro and BRICS are weak little sisters) and, for the first time, the US economy produces much more than all of socialist Europe combined.
Our Seven Great Tech Companies: Amazon, Apple, Google, Nvidia, Goal, Microsoft and Tesla, are close to being worth more than all stocks combined in any other country, with the exception of China.
ONLY 16% OF AMERICANS SAY BIDEN HAS HELPED THE MIDDLE CLASS
But Biden's stock market bull story isn't all it's cracked up to be. Most of the gains in the market have only offset the miserable returns of Biden's disastrous first two years in office, when stocks lost nearly 15% of their value. In other words, for the most part, the last 14 months have simply made up for ground lost during the stock's decline in 2022.
Strategic Wealth Partners Investment Strategist Luke Lloyd Reveals His Top AI Stock Picks Nobody's Talking About on 'The Big Money Show.'
Yes, it is true that in nominal terms stocks are at record levels. But one of the first rules of investing is that you must pay attention to your after-inflationary profits. If you make an investment in a gadget company and in 10 years that stock has doubled in value but the dollar price level of everything else has doubled, I'm sorry, you won't be any better off based on what you can buy with those Profits.
So let's look at what has happened to stocks during the first three years of Biden's presidency, that is, until the end of January 2024.
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During that period, the price level has increased by approximately 18%. The real (inflation-adjusted) rate of return on the S&P 500 after three years of Biden is therefore only 8%. This is quite anemic and well below the average annual real rate of return since the NYSE opened its doors, which represents a three-year average of more than 20%.
Carnivore Trading CEO Dutch Masters says investors need to see some broadening in the market in 'The Claman Countdown'.
Biden's performance is also much worse than the bull market low donald trump. The S&P is up 36% in real terms at this point in Trump's presidency, or more than four times as much.
Trump has argued that the stock market's rise in recent months is a result of the increased likelihood that he will be elected in November. I don't attach much importance to that statement. If the stock market crashes, is he also responsible for it?
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However, an analysis by investor Scott Bessent and economic council member of the Committee to Unleash Prosperity finds that fluctuations in the stock market over the past year HAVE a positive correlation with the betting market's odds that Trump will win. .
Right now it is just above 50%. This relationship could be spurious, and of course the most important factor driving stock valuations by far is earnings.
CFRA Chief Investment Strategist Sam Stovall says the market doesn't need a major overhaul of technology valuations in "Make Money."
One last investment tip: Investors should pay attention to the Democratic agenda if they win in November. Biden's economic plan calls for doubling the capital gains tax, taxing unrealized capital gains and increasing both the corporate tax rate and the dividend tax.
This is surely very bad news for stocks. And THAT, you can take it to the bank.
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Stephen Moore is a senior fellow at the Heritage Foundation and co-founder of the Committee to Unleash Prosperity. His latest book is "Govzilla: How Relentless Government Growth Is Eating Our Economy".
