Posted on 08/31/2018 9:31:16 AM PDT by yesthatjallen
On the news that President Trump has negotiated a new trade deal with Mexico, the stock market has reached a new record high. The Dow Jones Industrial Average finished above 26,000 and the S&P 500 finished above 2,900. The stock market surge, roughly a 40 percent increase since Trump was elected, is boosting 401(k)s, IRAs and index funds that Americans rely on for their savings and financial security.
This new trade deal and resulting stock market appreciation is just the latest victory for Trump in the face of a long line of establishment critiques. First, they scolded candidate Trump for pointing out that America was on the losing end of our trade relationships with the rest of the world. Then, after he was elected, they squealed when he threatened to impose tariffs on our partners to combat those they impose on American goods. Then, they panicked when he kept his word.
Yet, the new trade deal with Mexico, and the news that Europe is willing to scrap auto tariffs, going even further than their concessions this summer, has vindicated the Trump trade agenda again. While the exact details of the Mexico deal need to be fleshed out and ratified by Congress, it will surely be much more favorable to American manufacturers, farmers and workers than its NAFTA predecessor. As Trump predicted, the deal has also encouraged Canada come back to the negotiating table, potentially signing on to the new deal in the coming days.
Not only has the stock market shot up but the economy is also growing at a historic rate. This week, the Commerce Department revised second quarter growth up to 4.2 percent, putting the country on track for its first year of 3 percent annual growth since 2005. This is the aspirational growth threshold that Trump promised but naysayers from the Obama administration like Larry Summers said you would have to believe in “tooth fairies” to even consider.
Meanwhile, consumer confidence has reached its highest level this century. Retail sales, a widely used barometer of middle class and consumer health, shattered analyst expectations this month, growing by 6.4 percent. Wages are growing at their fastest pace in a decade. There has been record low black unemployment and hispanic unemployment in the Trump era, along with the lowest youth unemployment and general unemployment rates in 50 years.
All these economic records have come while the establishment has wrung its hands over the Trump administration tariffs. How could the president from Queens outsmart the think tankers, economists and cosmopolitans who predicted failure? Trump explained it 31 years ago in “The Art of the Deal” in which he wrote, “Leverage is having something the other guy wants. Or better yet, needs. Or best of all, simply can’t do without.”
Trump knows that our trading partners can’t live without the United States. Mexico would collapse without access to our market. We are by far Canada’s biggest customer. The same is true for our European friends. Even China is much more dependent on us than we are on them. That’s why they’re starting to agree, grudgingly, to open their markets to more American products. Whether such a deal materializes with China remains to be seen, but China would never have made even a rhetorical concession without the leverage created by the Trump tariffs.
The rest of the world understands that President Trump has given the United States leverage. The market now understands it too, giving retirees peace of mind and American businesses more latitude to invest, expand, hire and raise wages. When will the rest of Washington?
Alfredo Ortiz is president and CEO of the Job Creators Network.
Winning?!
It was a G-damn ROUT.
I haven’t seen economic news like that in 5 decades.
And the guy is doing this with the Mueller hobble on him.
IMAGINE what it would be like if that Clinton Black Op were GONE.
So how would you respond to those that say only 1 in 3 Americans have IRAs/401Ks/403bs and are benefitting from this uptick in the market? What about the 2/3rd of Americans that don’t? What has Trump done to help them?
This is the debate I hear all the time.
Bookmark
“What about the 2/3rd of Americans that don’t?”
I don’t know that that’s true, but if it is why don’t they?
Why didn’t they open their own IRA? The fact that some people are too stupid or irresponsible to save for their future isn’t Trump’s fault.
I don’t think that’s the reason and that’s a pretty negative view.
I think someone making $30k or $40k per year, living paycheck to paycheck and needing every dollar of that to survive doesn’t have excess money to invest. I linked to an article here the other day that said only 1/3 of Americans have more than $5k saved for retirement.
Many work for small companies that don’t offer 401ks and many can’t afford to start an IRA. Personally, I’m blessed to be fortunate enough and it’s hard for me to imagine because I opened an IRA when I was 17.
But I suppose it’s reality for many Americans.
In August no less.
Yeah and Trump has just been stabbed in the back and his Canada negotiations stymied by the Bloomberg News! Does he know the MSM is out to get him at every turn yet? What the hell is he doing talking to BLOOMBERG!!!
That debate is based on a false premise of Government being part and parcel responsible for your future needs. Every single person, and I mean, every single person who elects to NOT take Government handouts can start saving at any time they choose to do so. Eliminate one dinner or movie and put the money into a cookie jar. That’s what previous generations did and once it gets large enough, open a Savings account. Not enough interest would be their comeback from that suggestion. False premise. Interest gained at the beginning is the reason to be saving. The future independence is the reason to start saving. Not wanting to open a Savings Account? Same starting point: Eliminate what is not actually NEEDED for a set amount of time and Cookie-Jar it. Once you get the minimum amount needed to open a 401K, open it and don’t touch it. Ask those involved if they are actually able to open a 401K at work.... you’d be disgusted with how many do have access and choose not to open it with even 1% put towards it. And those with Company Matching Funds? Same thing. It’s truly dismal how many will take their spouse or kids out for a really good night out and complain they don’t have any money to save. Never let them frame the debate. Always ask them what *they* buy and use it as a start. “That blouse cost $25 today on sale. Know how much that blouse you bought to for $25 actually is going to cost you long term?” Then using the formula (with common sense caveats), explain how much the $25 blouse cost in lost interest! And start on the phones. Flip Phones instead of smart phones for kids. Safety issue? “Hey, mom, Flip Phones get through to the police or you and Dad just as quick as a Smart Phone! And it costs less!” I don’t take on the cigarette issue as it’s extremely volatile, normally. If a person I know is even considering quitting, I use it at that time... So many ways are there for you to frame the debate.... One more example. Employee getting a 2 percent rate increase this year and the company has matching funds? Suggest the putting in 1% into the Matching Funds and remind them with the company’s Matching Funds it’s up to 2% and they still get take-home increase! Okay. Off my soapbox.
Not everyone has a 401K availed to them is the simple answer.
Correction: Interest gained at the beginning is NOT the reason to be saving. ... Had to correct myself. LOL
I read all the time about these simple people leading leading simple lives and then be-questing a million or some such sum to who or whatever upon their Death. You want to party, eat out, live above your means well that’s FREEDOM of choice! I’m not picking up your slack because I lived one way and you lived another. Where the hell is my fiddle?
Tell them the truth: that’s on the individual. I had NO savings whatsoever and was going hand-to-mouth under Obama; right after Trump got elected our company gave out a bonus, and it went into an invest account and I’ve been adding a buck here and there ever since. Am I rich? Nope. Definitely lower middle-class. But I’ve got a month of wages stored and that’s a win for me and my president.
I agree with you. I know lots of people IN 401ks that don’t at least max their contribution to the point where the employer matches. That is just DUMB IGNORANCE. And many times, with the increase in the before tax deduction, their take home pay isn’t that greatly reduced.
The second peeve of this CPA? People LIKING tax refunds. You could have this money all year long and invest it for yourself in something that would truly earn money. I get that people don’t want to pay taxes with their return. But many people get $3, $4, $5 THOUSAND dollar refunds. That is NUTS. With just a little planning, you can still get a $1,000 refund and be happy. That extra can be saved.
The Trump Econonmy is the strongest economy in the history of the Republic.
Trump is the Greatest Job President God has ever given us
But an IRA is available to everyone. What’s your point?
I’m sure we’re reading all of this wrong. Mad Maxine will step forward later today and explain why this news is grounds for impeachment.
#3, He’s rounding up Criminal invaders who take jobs and keep the labor market flooded.
With a lowering in available workers the wages will go up to compete for workers.
His tax cuts are allowing Billions of dollars that was parked overseas by rich folk to be returned into OUR market creating capital for businesses to expand...MORE jobs.
He is reducing the Regulations that have stiffeled the business community and cost then Billions needed to comply with the Tree Huggers wet dreams. All that money is now available to expand businesses and hire More workers.
But none of this matters. We are supposed to listen to that Amoroso (sp) woman spew her stories. We are supposed to be mortified about Kavanaugh going to the Supreme court. Etc.
Sarcasm.
Gee whiz, that's a tough one to counter, but try this: More job openings that create higher wages, not to mention all the bonuses. And that was starting when Trump was only President-elect.
Then ask: "Who are the 2/3rd Americans and what have they done to advance themselves?"
Their comeback: They go to college to advance their lives. The few honest ones will tell you to get out of the house and party.
Your comeback: Okay, so major in some bullshit social studies that employers don't have a need for except a couple jobs in Human Resources. Then you can wonder why you can't pay off your student loans for most of your lives or get a decent paying job. That is unless you've sucking off your parents money, the fools they are.
But hey, party on bro. Bernie Sanders has the solution - free college and other free stuff for everyone. The money will fall from the sky.
Personally, I believe at least half of all Fedgov funded universities should lose those tax-payer dollars and re-direct them to various trade schools. I see a new brick&mortar or on-line school popping up almost weekly on TV commercials.
Okay, suckup, don't want to be an electrician? then use your parents' money to attend an IT school. You millenials are worthless.
What is a progressive college at the bottom of the seas?
A GOOD START!
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