Wednesday , 26 June 2019


Economy

History Strongly Suggests Tax Cuts Would Revive GDP & Fuel Market Gains

...According to Bloomberg ("White House: Cohn-Led Tax Plan is Real and it's Phenomenal," February 10, 2017), Trump's tax plan, to be released in two or three weeks, will be "the most comprehensive business and individual tax overhaul since 1986." That's saying something, since the landmark 1986 tax bill cut many deductions and reduced the top rate to 28% for the rich, 15% for the middle class, and 0% for the poor.

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Corporate Earnings Trump Politics

No matter what the Trump Administration and its many critics keep throwing at us, the market usually focuses more on corporate earnings than politics. Since we are in the middle of earnings season, stocks with strong sales, earnings, and forward guidance will likely continue to lead the market.

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Trump Economic Plan Has Major Ramifications For Investors

Seth A. Klarman is the most successful and influential investor you have probably never heard of and he fears that investors, charmed by talk of pro-growth policies, are not considering the full ramifications. Perhaps that’s why a private letter he wrote to his investors a little over two weeks ago about investing during the age of President Trump has quietly become the most sought-after reading material on Wall Street. Here it is!

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What an America First Trade Policy Could Mean for the US Dollar

Are the actions being taken by Trump’s administration to spur domestic manufacturing, jobs and economic output a precursor to a weaker dollar and another bull market in gold? Only time will tell, but investors should keep close watch on this developing scenario and adjust portfolios accordingly.

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What the Discrepancy Between the CPI and the Big Mac Index Tells Us

Higher prices (inflation) are a natural consequence of our ever increasing monetary supply and the U.S. Department of Labor tracks those increases via a basket of common consumer goods which is known as the Consumer Price Index (CPI) but reveals a major discrepancy with The Economist's Big Mac index. Why is that?

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Raising the Roof – On a Higher Debt Ceiling That Is!

Many novice observers may wonder why we have a debt ceiling at all when our government has never shown the slightest inclination to respect its prior self-imposed limits [and, as such, why all the] seeming urgency to Congressional negotiations to raise the debt ceiling. [Let me explain in no uncertain terms.] Words: 1073

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