It’s a new year and stock markets are already hitting new records. Soon you’ll get 50,000 on the Dow and over 7,000 on the S&P 500. The left-wing media never talks about it, but more or less 135 million American investors sure do. This includes all left-wing union pension funds. Inventories go up, taxes go down. Inventories are increasing, federal regulations are decreasing. Inventories are rising, energy prices are falling.
In total, a drop of around 25% in oil prices, which practically permeates the entire economy, and you are bring a higher take-home pay to the middle class kitchen tables and higher profits for businesses across the country.
Tax cuts are great for profits. Deregulation is great for profits. 700,000 new jobs in the private sector and a drop of nearly 300,000 jobs in the federal government means more profits. Profits build great businesses. Profits mean more job opportunities. Profits mean higher wages. Profits are the mother’s milk of stocks. Think about it. This isn’t the first time I’ve made this point. It’s kind of my thing.
Aspirin, ballpoint pens, cell phones, coffee makers, computer keyboards and monitors, dog collars, glasses, food fertilizer, golf bags and balls, eye pads and iPhones. And laptops. And the luggage. Pajamas and pharmaceutical products. And shaving cream, shampoo, skateboards and tennis rackets. And hundreds of other items. The fall in oil and gasoline prices is currently the greatest story ever told.
CPI reports in the coming months could even turn out to be negative. I’m not saying every month, but you could experience negative results due to lower energy prices. The October and November averages were one-tenth of one percent. That’s all 0.10%. Well below the Fed’s target. This means that wages have even more power when prices fall. This means that real GDP for the entire economy could increase by 5% or 6% or 7%. Not every quarter or every year, but the power of lower energy and lower inflation can propel the economy to a high.
There is already an economic boom and tax refunds are on the way. Plus, Mr. Trump’s factories — he loves new factories — are a great way to avoid tariffs. And create jobs and increase wages. And keep prices low. And build stock market wealth. Fall in energy prices are going to hand the midterm elections to the GOP as long as they sell them. It’s the greatest story ever told.