The 10 year bond growth rate was fixed (for the moment) at 2.85% on Friday,
The Market has grown without a correction of any kind for well over a year.
The answer to my headline is never a simple issue but does include the following: Under Obama, bond prices and retirement funds were terrible. Not the case today, and rising bond prices are getting to the point that investors are willing to put money into that program . . . . three percent interest, guaranteed 10 years from now, is sounding like a good deal to a growing base of investors.
Couple that with the corresponding fact that the money used to buy bonds (and secure 401K funding) is being taken out of the Market and you have reason for much of the present-time correction.
All this being true (?), the current correction is actually a sign of strength.
Now, after a 5 to 10 percent correction, what comes next? Well, we we be left with a strong market that grows at a much lower rate; retirement funds and 401K funds become a safe place to grow ones retirement, for the first time since Obama; and, inflation becomes a issue that must be dealt with . . . . . per normal and historic values.
Understand that Barack was no friend to retirement funds, corporate/dividend profits or a "booming" economy.
Look, what you are seeing with the Market's wild success, is what could have been, under Obama, if he had not pressed high taxation and thousands of pages of new and repressive regulations. His policies held the Market down, destroyed retirement funding, and held annual growth to 2% GDP.
Trump simply took "the lid" off the Market, and allowed it to do what it had been wanting to do, for the past two or three years. To say it differently, we had a Market under Obama, that was not allowed to profit investors because Barack thought such profits were unfair . . . . the common man was not an investor.
Thanks Barack for nothing.
Its fun to watch you contort numbers to your personal biases.
ReplyDeleteHow so? Its easy to make a charge. It is something else to do so definitively and you have no numbers "contorted" by me. None.
DeleteI think maybe you have your tinfoil hat screwed on too tight. Obama never voted as a member of the Central Bank. In fact he appointed Republicans to sit on the voting panel. One of those Republicans is now the head of the Fed. A Republican who also has ZERO training as an economist. I'll bet he at least took Econ 101. Lets hope he was listening!
ReplyDeleteSo...if Obama is responsible for stocks being high but not too high and bond yields being low, how is Donald responsible for the stock market surge? If I recall correctly when Obama was elected President, the economy was in the beginnings of the deepest recession since The Great Depression.
OH WAIT!! Now I remember how your narrative goes. Everything good that happens is because of a Republican and everything bad that happens is because of a Democrat (usually Obama). Its like your trying to steal Sean Hannity's narrative.
If you are a smart investor with your 401k, you would have at least a 50-50 split between stocks and bonds When Obama was elected the S&P was about 800 and when Trump was elected it was about 2100. If I read you correctly, Bill Clinton and Obama wrecked the economy and Bush must've fixed the economy before he left office but Obama held it back for 8 years and now Trump is taking the lid off but Obama's still lurking in the interest rates and ruining retirement funds. Time to loosen the elastic on that tin foil hat.
Phew! So if inflation jumps in the next 2 years, I'm curious how your going to blame that on Obama. Because macroeconomic theory would predict that the tax cuts could jump start inflation and if there were only the slightest shock, it could really take off. And if interest rates are still low and tax rates are low and the economy goes into a recession, the only tool left in the box is a GIANT stimulus package by a government that just added an extra $1 TRILLION in debt. OH YEAH! AND YOU USED TO PRETEND YOU CARED ABOUT THE DEFICIT! HAHA!!
Paul writes: "OH WAIT!! Now I remember how your narrative goes. Everything good that happens is because of a Republican and everything bad that happens is because of a Democrat (usually Obama). Its like your trying to steal Sean Hannity's narrative."
DeleteActually I got this from the Democrat playbook. Please don't make me give one of my two hundred examples.
Paul writes: If I read you correctly, Bill Clinton and Obama wrecked the economy
ReplyDeleteEditor:I have no clue what you are talking about. Clinton did one very important thing with taxs: He cut big business dividends taxes. He was well aware of the axiom: As business goes, so goes the national economy.
Barack did not cause the 2008 collapse. But he certainly did not understand the world of national finance: Fairness has nothing to do with building a national economy. He refused to cut business taxes because the "little guy" could not share in the experience. So his GDP annual averages stayed below 2%.
My point? While Barack was busy trying to convince us that 2% GDP was the new 4% GDP, the economy was bursting at the seams, waiting for someone who knew what the hell they were doing.