Untold Story: American Millionaires Next Door

“You didn’t build that.” — President Barack Obama, July 13, 2012

Monday’s Wall Street Journal headline delivered a simple but powerful story: “More Americans Than Ever Own Stocks.”

The Federal Reserve reports that 58 percent of Americans constitute the nation’s stock-holding Investor Class. Gallup revealed in May that 61 percent own stocks or stock-based mutual funds. The numbers are within the margin of error to each other.

They have to be accurate. Americans are building — on their own — their nest eggs.

More to Almost DailyBrett’s point, the US Debt Clock.org revealed that 23.24 million Americans are millionaires. Not all of them are Paris Hilton, inheriting and flaunting the family pot of gold.

Instead, they worked their tails off, buying low and selling high — and more often than not — living next door.

Heck, they may be you.

One of greatest untold stories — maybe even the most suppressed by America’s bi-coastal elite legacy media — is the upward movement starting in the Reagan 1980s of literally millions of Americans from the middle class to lower-upper class.

Did they all “Talk to Chuck?”

The Wall Street Journal subhead suggested the pandemic and zero commissions on trades greatly contributed to an expansion of Americans — yes America’s Investor Class — all of whom invest in Wall Street (read: the nation’s publicly traded private sector).

Is Wall Street a get-rich-quick scheme (it’s not Bitcoin)? No, it’s the wise, successful management and mitigation of risk over time. Those who invest early and never give up the fight may achieve the vaunted seven figures or more.

The vast majority maybe labeled as nouveau riche, but don’t behave or even remotely feel that way. There have been downturns (i.e., Internet Bubble, Mortgage Meltdown) and exogenous events (i.e., 9/11, Covid, Russian Invasion) causing markets to fluctuate, and they will continue to be volatile.

The infinite wisdom Inside-the-Beltway crowd rushes to the rescue with trillions of inflationary dollars of “stimulus.” Can you believe that some Americans actually took these dollars and invested them in markets?

More Americans Than Ever Are Waking Up As Millionaires

“It’s way past time we put an end to the era of shareholder capitalism.” — President Joe Biden, July 9, 2020

“I’m happy there (Omaha). I’d move, if I thought I’d be happier someplace else.” — Warren Buffett on his residence, which he bought in 1958 for $31,500

In 1996, the No. 1 bestseller was the aptly titled, “The Millionaire Next Door” by Professors Thomas Stanley and William Danko. Part of the reason for the book’s success was the distinct possibility that your neighbor — yes, in your neighborhood — had a net worth of seven figures (not including real estate).

Today we have the $121 billionaire next door, if you live adjacent to Warren Buffett in Omaha, Nebraska. His 6,570 square-foot residence (five bedrooms, two-and-one half baths) is worth $1.2 million, according to Zillow.

Buffett, 93, will not spend more than $4 for breakfast, stopping in each morning for his McDonald’s breakfast sandwich. Mr. Buffett is genuine.

Almost DailyBrett believes that the vast majority of America’s millionaires next door are genuine too. Maybe they live in the same modest house. Maybe they drive the same vehicles. Maybe they vacation once or twice each year.

Yes, they built their wealth through hard work over the years. They don’t want to see the end of shareholder capitalism. The system works.

Wish we could say the same about our confiscatory government.

https://www.wsj.com/finance/stocks/stocks-americans-own-most-ever-9f6fd963?mod=finance_lead_pos5

https://news.gallup.com/poll/266807/percentage-americans-owns-stock

https://www.usdebtclock.org/

https://www.cnbc.com/2023/03/03/warren-buffett-lives-in-the-same-home-he-bought-in-1958.html

Women Are Leading America’s Investor Class

Killing America’s Investor Class?

Buy Low And Sell High Millennials

Architect of “Bidenomics” Owns Zero Stocks

Never Get Giddy, Never Get Depressed

“Know what you own, know what you own.” — Legendary former manager of Fidelity’s Magellan Fund Peter Lynch

“Never mind if the mule is blind, just load the wagon.” — Former Oakland Raiders Head Coach John Madden

As a Charles Schwab retail investor for more than three decades, Almost DailyBrett can issue with impunity an ex-cathedra statement: ‘Never bet against technology.’

Just load the wagon.

Have you ever checked out the ‘Magnificent Seven:’ Apple, Alphabet, Amazon, Meta Platforms, Microsoft, NVIDIA and Tesla. They will treat every investor to Maalox moments (particularly Tesla), but their trajectory is almost always upward to the right.

There are times these stocks take a pit stop or two, but soon enough they will be tearing up the track. Your author presently owns five of these seven: Apple, Alphabet, Microsoft, NVIDIA and Tesla.

There were times when legacy techs were all the rage including: AT&T, Cisco, General Electric, Itty Bitty Machines and Intel. Will the Magnificent Seven eventually have their own dates with the ash heap of history? Nothing goes up forever? Right?

Remember the much ballyhooed FAANG stocks, Facebook, Apple, Amazon, Netflix and Google? FAANG is just so yesterday. They have been replaced with the aforementioned Magnificent Seven, which comprises more than 20 percent of the total revenues of the S&P 500.

As a former director of communications for the Semiconductor Industry Association and director of corporate public relations for LSI Logic, Almost DailyBrett is very familiar with the oft-heard adage: ‘When the semiconductor industry slams into the wall, there are no skid marks.’

With that admonition in mind, will there be a day that AI semiconductor innovator NVIDIA led by Jen-Hsun Huang slams into the wall? Most likely at some point. Will it be this afternoon when NVDA reports? Don’t think so.

Some Thoughts For The Retail Investor

“A person’s approach to money, his or her saving and spending habits, and comfort or discomfort with risk are deeply ingrained, and more emotional than rational.” — Charles Schwab, pioneer of Retail Investing

“There are bulls. There are bears. And pigs get slaughtered.” — CNBC Mad Money Host Jim Cramer

Growing up, mumsy (born in 1919) was a child of the Great Depression. She would never invest in markets. She once asked her youngest son — your author — if he was “playing” the market? The answer was and still is in the affirmative.

What yours truly found is the greatest mental gymnastics was always associated with not when to buy, but when to sell? Could one be leaving money on the table? Could one be watch a great paper gain end of being shot down in flames? Could one be a slaughtered pig?

For Almost DailyBrett’s University of Oregon master’s degree project, yours truly created a college course in corporate communications and investor relations. Too many students are graduating from major communications schools, and have no clue how to read an income statement or a balance sheet.

What the hell is GAAP? Better clean it up if it spills on the floor.

Teaching corporate communications and investor relations at UO and Central Washington University, your author asked a simple opening question to students: ‘How does a company make money (e.g., how does Apple make legal tender)?

This first question takes one back to Peter Lynch’s admonition about knowing what you own? If not, you are gambling or the same, invested in Bitcoin.

The Gallup organization reported that 61 percent of Americans are invested in individual shares or stock-based mutual funds. Is every member of the nation’s growing Investor Class rolling the dice with their retirements? Don’t think so.

Once visiting the editorial offices of Investor’s Business Daily (IBD) in Gotham, there was a jagged chart continuously upwards to the right from 1929 to the present day. Retail investing is not get rich quick. There is an element of risk. It’s far better investment vehicle than all others.

Since Almost DailyBrett first invested a few shekels with Schwab in 1992, there have been über-exogenous events that resulted in major bear markets (i.e., Internet Bubble, Mortgage Meltdown, Covid Pandemic). Will there be more (i.e., Biden re-election, Trump election, China invades Taiwan)? You can bet on it.

Many preach diversification, including desultory expensive ill-liquid bonds, as the best defense. Others are concerned about FOMO (Fear of Missing Out). And some say never put too much into any one stock.

If legendary investor Warren Buffett reportedly has personally invested 50 percent of his portfolio in one tech stock, the most widely held security on the planet, Apple, then that’s a fantabulous recommendation. More Apple, please.

Which brings us back to the Almost DailyBrett Golden Rule of Investing; Never get giddy. Never get depressed. Stay the course. Invest in America.

Buy Low, Sell High!

NVIDIA 4 FAANG

Farewell LSI Logic

Women Are Leading America’s Investor Class

Time To Bury Tired Techs?

Revisiting Andy’s Rules Of Recession

Women Are Leading America’s Investor Class

A higher percentage of women (62 percent) than men (59 percent) constitute America’s Investor Class.

Weren’t men the gender that can’t live without risk?

Has a gender-divide line been crossed, never to uncross itself? Almost DailyBrett will take the “over.”

Gallup’s reported growth in America’s investor class to 61 percent of Americans, the highest percentage since 2008, is not a surprise in our post-Covid/after the mortgage meltdown FOMO (Fear of Missing Out) markets.

For the time being, there is no alternative (TINA).

Last year, it was widespread FOLD (Fear of Losing Dough) as the S&P 500 plummeted 18 percent. It was time for desultory bonds and cash.

Already in the first seven months of 2023, the very same S&P 500 has advanced almost 16 percent. Americans are piling into technology market leading stocks, particularly the Magnificent Seven: Apple, Alphabet, Amazon, Meta Platforms, Microsoft, NVIDIA, Tesla.

Rules are being broken en masse. Diversification including fixed income is what they advise. Who are they?

Warren Buffett said he would never invest in tech. He implored those who would listen to diversify.

Today one stock, Apple, constitutes 40 percent of the Sage of Omaha’s portfolio. If billionaire Warren Buffett can fly in the face of convention, so can Almost DailyBrett.

As a university professor, who taught public relations, advertising, marketing, corporate communications and investor relations, yours truly was not surprised that coeds comprised the overwhelming majority of communication classes.

Why?

Women as a whole are simply better suited for the service economy. They are more adept when it comes to attention to detail. The world is being dominated by the consumer economy, clear advantage to the fairer gender.

Another shock in the latest Gallup survey is the statistical tie between Republican (66 percent) and Democratic (64 percent) participation in America’s Investor Class. Is this eye-raising stat another visible sign of how women (more Democrats) are increasing their buying and selling of stock and stock-based mutual funds, many through 401k’s and pensions?

The widest gulf comes from those who are married, 74 percent own shares and stock-based mutual funds compared to only 48 percent of those who have not tied the knot.

Are more women retail investors, making their own decisions through Charles Schwab, E-Trade, Fidelity, TD Ameritrade and other online portals? You bet ya.

Women can ring the register just as well as their male counterparts without betting the ranch, maybe even better.

Turn On CNBC’s Halftime Report

Long ago sell-side analyst women became a daily fixture on CNBC.

They are there — everyday — as they should be. If Gallup is correct, CNBC would be wise to do even more to connect with the surging women investor class audience. That’s just good business.

As America heads toward 2024 and another dreaded presidential electoral season, campaign teams should avoid preaching excessive taxation/public spending masochism. If Americans are growing wealth for themselves and their families, why attack the very corporations that are floating shares that more-and-more women and men (in that order) are buying and selling?

Isn’t Buy Low Sell High, the key to financial success? Don’t we want more Americans to be able to put on their own masks first before assisting others?

We can do exactly that and more. America’s majority investor class — 61 percent and growing — is showing the way. Let’s follow in the footsteps of these smart women and men.

https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx#:~:text=WASHINGTON%2C%20D.C.%20%2D%2D%20Gallup%20finds,it%20has%20been%20since%202008.

The Other American Dream: F-U Money

The Joy Of Discretionary Income

Invest Stimulus Payments On Wall Street

Killing America’s Investor Class?

Men Who Need “Mommies”

“Economically Illiterate Silver-Tongued Demagogues”?

“When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive).” — Warren Buffett, The Oracle of Omaha, Berkshire Hathaway Annual Investor Letter, February 25, 2023

“Corporations ought to do the right thing. That’s why I propose we quadruple the tax on corporate stock buybacks and encourage long-term investments. They’ll still make considerable profit.” — President Joe Biden, State of the Union Address, February 7, 2023

Silver-tongued demagogue? Nope. Economically illiterate? If the shoe fits …

How does POTUS know that publicly traded American corporations will make a “considerable profit?”

He has proudly proclaimed he doesn’t own stocks in US companies. He doesn’t even maintain a savings account. Can he read an income statement or a balance sheet? Can he forecast the future when it comes to the bottom line? Does Mr. President know where to find the bottom line on an income statement?

The so-called Inflation Reduction Act imposes a precedent setting 1 percent excise tax on stock repurchases. How applying new taxes on corporate share buybacks fights inflation is way beyond the pay grade of Almost DailyBrett.

If the increased revenues from these taxes were directed to reduce the nation’s unsustainable and untenable $31.58 trillion debt (120 percent of the nation’s annual productivity), financed by spending $537 billion in debt service, the leader of the free world would have an argument about inflation reduction.

Alas, all the money will be spent. All the money is always spent, and then some.

Maybe Corporations Should Apply For Student Loan Relief?

“The most terrifying words in the English language are: ‘I’m from the government and I’m here to help.” — President Ronald Reagan

Why do the economically illiterate/silver-tongued demagogues have a collective hard-on, when it comes to corporate buybacks?

Is it because it leads to profiteering (new Beltway verb)?

When somethings seems to be too good to be true, don’t you know that is indeed the case?

As a way to stimulate American semiconductor innovation and manufacturing, Congress passed the $52 billion bill (CHIPS Act) as an incentive for US microcircuits innovators.

Alas, Senator Elizabeth Warren and others of her ilk want to prevent microchip companies from using federal monies for capital expenditure and research and development (R&D), so they can in turn can free up corporate capital for — you guessed it — corporate buybacks.

As a former director of corporate public relations for a Silicon Valley based publicly traded semiconductor innovator (LSI Logic) for a decade, Almost DailyBrett understands why companies periodically buy back their own shares for the benefit of their employees and their shareholders.

When markets and stock prices are lower, a company can reduce the float, thus increasing the value of each remaining share. This practice does not come at the expense of employee compensation, capital expansion and/or research and development.

In fact, a large percentage of employees participate in Employee Stock Purchase Plans (ESPP) and/or stock options. Senator Warren and her flock somehow doesn’t think increasing the value of each share doesn’t help these workers fight inflation?

How about public employees in STRS (State Teachers Retirement System and PERS (Public Employees Retirement System)? Don’t these daddies and mommies benefit when their pension or 401k retirement systems increase in value? What about America’s Investor Class, the 56 percent of Americans who own company shares or stock-based mutual funds?

Think of it this way: Warren Buffett — even the pseudo-Andy Warhol version — has forgotten more about economics than Joe Biden and Elizabeth Warren will ever know.

The real question is what the hell is wrong with corporate buybacks? American publicly traded companies have been floating shares ever since the founding of the New York Stock Exchange (NYSE) in 1792. Investors bought pieces of companies, providing valuable seed money to hire, build and research.

It’s a beautiful thing. Government intervention is not required. Really.

Warren Buffett, 92, knows a thing-or-two about the vagaries of public markets. He also can identify “economic illiterate silver-tongued demagogues,” when he sees them.

Does the shoe fit?

https://www.cnbc.com/2023/02/25/warren-buffett-annual-letter-berkshire-hathaway-stock-buybacks.html

https://news.yahoo.com/president-biden-calls-out-stock-buybacks-in-state-of-the-union-address-104810205.html?

https://www.warren.senate.gov/newsroom/press-releases/warren-lawmakers-to-commerce-dept-prevent-stock-buybacks-by-corporations-that-receive-chips-act-funds

https://www.nyse.com/history-of-nyse

https://www.usdebtclock.org/

Killing America’s Investor Class?

Throwing Even More Money At Inflation?

Stop Dissing America’s Investor Class

Fiduciary Responsibility vs. Corporate Social Responsibility

The Abortion Issue Is Overrated

“As we enter the final weeks of the 2022 midterm elections, I am alarmed to hear the advice that many Democratic candidates are getting from establishment consultants and directors of well-funded Super PACs that the closing argument of Democrats should focus only on abortion.” — Senator Bernie Sanders, The Guardian op-ed 

“A lot of these consultants think if all we do is run abortion spots that will win for us. I don’t think so. It’s a good issue. But if you just sit there and they’re pummeling you on crime and pummeling you on the cost of living, you’ve got to be more aggressive than just yelling abortion every other word.” — Democratic presidential campaign manager James Carville

The sun came up over the eastern horizon on Saturday morning, June 25.

The birds chirped. The bees buzzed. It was a Summer Solstice day from coast-to-coast, across the fruited plain.

To single-issue voters — whether it be pro-abortion or anti-abortion — there was zero magnanimous in victory, gracious in defeat. They were just as militant as ever.

They anointed themselves “pro choice” or “pro life,” when it comes to their support or opposition to America’s extremely profitable $3.7 billion abortion industry.

As long forecasted, the jurisdiction of this issue was finally returned to the states. Roe v. Wade was mortal, just like everyone else. The U.S. Constitution as everyone knew was silent on the subject.

Does Almost DailyBrett dare say the perennial abortion issue is overrated? Your author is indeed making that assertion.

Why? The people who care, really care.

They are always fired up. They are perpetually en-fuego. They know who they are going to vote for, and conversely who they are going to vote against. Are they relevant? In terms of rallying respective bases, they matter, but no further.

Will the medical procedure be incorporated into state constitutions in certain places? Maybe.

Will it be banned in others? Maybe.

Ultimately, the courts will play huge roles — decision by decision — in these ongoing 50-state dramas decade after decade.

Will they halt the coming Republican takeover of at least one house of Congress? Barring some unforeseen exogenous issue, surging inflation, deepening recession, rising interest rates and the quality of individual candidates and local concerns (e.g., parental rights) in entire states or individual congressional districts will decide the outcomes.

The real question is whether the combined impact of inflamed pro-abortion forces can overcome worsening 8.3 percent inflation, rising interest and mortgage rates, plummeting family wealth, frightening recession, skyrocketing gas and diesel prices, soaring crime and opening national borders.

Does America work anymore?

Almost DailyBrett believes the eternally contentious abortion single issue — post Roe v. Wade — will not change any already made-up minds. More important, the aftermath of Supreme Court decision will not come even close to overcoming the cumulative impact of inflation, crime and border issues.

Inflation, The Gift That Keeps On Giving

“I’ve been working to make sure that when the price of oil comes down, the price at the pump comes down as well and comes down in real time.” — President Joe Biden, July 22, 2022

The leader of the free world last summer was championing prices at the pump coming down for 38-consecutive days.

Been to the gas station recently Mr. President, especially in highest petroleum taxes ($0.66 per gallon) in the nation, California?

Almost DailyBrett distinctly remembers the last time that rising inflation, surging interest rates and deepening recession hit Americans all at the same time. The leader of the free world was James Earl Carter.

How did Americans respond at the polls?

Reportedly, Biden is not fond of comparisons with the one-term president. Alas, sometimes the leader of the free world has to own his analogies. The last time the nation suffered prolonged inflation and economic pain was during Carter’s reign.

High gas prices and surging food, housing and service costs are in the faces of Americans every minute of every day. Personal safety and concerns about crime are always there. New York City just declared a state of emergency because of the influx of migrants.

These unavoidable concerns easily trump the overrated abortion issue. To those who care, they really get worked up.

They still have to go to the store and the gas station.

https://www.foxnews.com/media/bernie-sanders-james-carville-warn-democrats-against-going-all-in-abortion-political-malpractice

https://www.ibisworld.com/industry-statistics/market-size/family-planning-abortion-clinics-united-states/#:~:text=What%20is%20the%20market%20size,is%20%243.7bn%20in%202022.

https://www.baltimoresun.com/news/bs-xpm-1990-09-27-1990270186-story.html

https://time.com/6174825/americans-views-abortion/

https://www.pbs.org/newshour/politics/watch-biden-touts-falling-gas-prices-during-virtual-meeting

https://www.foxnews.com/politics/pains-pump-could-shift-midterm-outcome-election-won-lost-pump

The Constitutional Right To Be Wrong

Could JFK Be Nominated By Today’s Democratic Party?

Better Off Four Years Ago?

“Ever since you came into office, things are already looking up. Gas is up. Rent is up. Food is up. Everything.” — Comedian Trevor Noah roasting President Joe Biden at the White House Correspondents’ Dinner, April 30

“Are you better off than you were four years ago? Is it easier for you to go and buy things in the stores than it was four years ago? Is there more or less unemployment in the country than there was four years ago? Is America as respected throughout the world as it was? Do you feel that our security is as safe, that we’re as strong as we were four years ago?”  — Ronald Reagan 1980 Presidential Debate closing statement

Even though Reagan’s rhetorical questions to the American electorate were posed more than four decades ago, sadly they still apply today.

Almost DailyBrett believes these interrogatives are more germane now than any other time during the last 42 years. America doesn’t seem to work anymore.

Is it fourth down in America?

David A. Graham of The Atlantic labeled the administration as “The Punt Presidency.” It seems that America projects what it can’t do as opposed to what it can.

Ronald Reagan was widely known as The Great Communicator. Can the same be said about the present occupant of the Oval Office? Do we root for POTUS to string together a few sentences even when he is reading the teleprompter?

After publicly admitting his lack of knowledge about the intricacies of the Federal Reserve, Reagan came to clearly understand the impact of crippling inflation on the American public. Inflation particularly hurts those with limited means and dependent on fixed income.

Does the current administration really comprehend why gas prices are stratospheric and why the cost of food is going through the roof? Are they ready for the coming crash landing (e.g., recession) after a litany of Federal Reserve interest rate raises — next one this coming Wednesday — to combat government-spending induced inflation?

Do they comprehend what constitutes a recession? Hint: It’s two sequential quarters or more with negative GDP growth.

The White House seems to believe that just one more trillion-dollar-plus spending package will solve the problem, when the surging money supply (M1) growth is the real villain.

No one seems to care the national debt is racking up new records, today at $30.41 trillion or 128.75 percent of the country’s $23.62 trillion Gross Domestic Product (GDP). It’s costing American taxpayers $432.22 billion to finance the debt, the federal government’s fourth largest expenditure.

Has President Biden and/or Vice President Harris been to the grocery store or even to the gas station? There is a reason neither one of them has ventured to markets and fuel pumps in the heartland, where real people struggle to make ends meet.

Are gas stations and grocery stores political Bridges Too Far?

Didn’t Clinton campaign manager James Carville proclaim in 1992: “It’s the economy, stupid?” Are good times just around the corner? Are they in the rear view mirror?

Were economic times better four years ago? Consider how much cumulative family wealth has been lost just this year by the nation’s investor class, approximately 145 million Americans? Consider that 56 percent of the country’s population owns stocks or stock-based mutual funds.

Are they happy campers?

The widely held FAANG + Microsoft stocks have collectively recorded $2.21 trillion in staggering losses since January 1.

Does the administration care or are they secretly celebrating Wall Street woes? Would the Oval Office like a little Gray Poupon on their Schadenfreude sandwiches?

Four years ago it was the Mother of All Bull Markets. Today it’s the Muther of all Bear Markets.

Protection And Safety?

Almost DailyBrett believes strongly the number one responsibility of government is to provide protection and safety to its citizens. Are we safer today than we were four years ago?

Your author never thought the day would ever come when a sitting President of the United States would employ the setting of the State of the Union Address to call upon municipalities to fund as opposed to defund the police.

Crime and punishment used to be a political no-brainer.

Violent crime has surged in America’s cities. Directly related out-of-control homelessness show no signs of abating along with its bi-products of trash, needles, human filth and misery.

Is it We The People or We The Unions?

Will parents regain ownership over what their own children are taught in school? Will teacher unions supported by woke Walt Disney Corporation continue to make these decisions?

Reflecting on Trevor Noah’s good-natured barbs at the White House Correspondent’s Dinner last night, the comedian brought back to Almost DailyBrett what Mumsy always said.

“A lot of truth is often spoken in jest.”

https://www.fool.com/research/how-many-americans-own-stock/

https://www.usdebtclock.org/

https://www.marketwatch.com/story/faang-stocks-plus-microsoft-lost-1-4-trillion-in-market-value-during-april

https://www.theatlantic.com/ideas/archive/2022/04/biden-mask-mandates-student-loans/629616/

How The Gipper Beat Inflation

Parents vs Teachers

It’s The Taxes, Stupid

“It’s way past time we put an end to the era of shareholder capitalism.” — President Joe Biden, July 9, 2020

Does $9 million Joe Biden invest in even one share of any publicly traded company?

If not, how can he understand markets let alone their importance to the dreams of more than 180 million Americans?

Did Joe Biden just declare a $6 trillion war on the 55 percent of Americans, who invest in shares and/or stock-based mutual funds?

Considering that more than one-half of all Americans of all income and wealth levels invest in their futures by means of buying shares or stock-based mutual funds, shouldn’t we be concerned when the leader of the free world wants to end shareholder capitalism?

Sounds like the punitive redistribution playbook devised by Bernie Sanders, Elizabeth Warren and Kamala Harris. And Biden is a moderate? Right CNN?

Biden The Moderate wants to hike of the corporate tax from 21-28 percent and has proposed the near doubling of the federal capital gains taxes from 23 percent to 44 percent. Oh, the latter only applies to those making more than $1 million. What will be the cumulative impact of these two initial punitive redistributive tax increases on every investor large or small? FUD.

That is Fear, Uncertainty and Doubt. Wall Street investors detest and loathe FUD.

Surely these increased revenues will be used to pay down the nation’s record $28.23 trillion cumulative debt or $84,785 per every American woman, man and child? This staggering amount is an unprecedented 127.7 percent of the nation’s world-leading $22.10 trillion Gross Domestic Product (GDP). It’s the country’s fourth largest expenditure at $398 billion.

The answer is not a penny.

What does the Bidenesque end of shareholder capitalism mean for public employees and state teachers and their pension funds? How about seniors nursing their nest IRA eggs? What about parents investing in their 401k’s for their children’s education? What about Millennials becoming retail investors for the first time via Robinhood and other trading platforms?

Ever hear of Charles Schwab, Joe? Tax him too.

Keep in mind $1 million is a lot of money, but note what it was five years ago, 10 years ago, 20 years ago before inflation.

Under the Biden plan a seven-figure California-based overachiever would be confronted with a 39.6 percent federal capital gains tax, a 13.3 percent state capital gains tax, and a 3.8 percent Obamacare investment income tax or a cumulative 56.7 percent levy on any gain coming from the investing of discretionary funds.

Ready to invest even more, when governments take nearly 60 percent? A Californian could reduce this amount by 13.3 percent by moving to Texas, Washington or Nevada. Oh — they are already doing that.

What about the impact on investors and the economy of the 28 percent corporate tax?

Will companies once again ex-patriate their overseas gains? Yes as they have before.

Treasury Secretary Janet Yellen is asking her foreign colleagues to pass a corporate minimum tax. Reminds Almost DailyBrett of a doctor prescribing a second pill to counteract the side effects of the first pill.

The Joys Of Other People’s Money

“Tax the rich, tax the rich, tax the rich. We did that. God forbid the rich leave.” — New York Governor Andrew Cuomo

“The problem with socialism is that you eventually run out of other people’s money.” — Former UK Prime Minister Margaret Thatcher

The National Association of Manufacturers (NAM) projected 1 million job losses based on the Biden Tax Plan.

And what about the impact of rising taxes and escalating federal spending? Will a return of 18 percent Jimmy Carteresque inflation be in the offing?

And don’t you know that soaking the rich ends up with a corresponding dynamic response? Cuomo lamented about New Yorkers moving to zero state income tax Florida. Heck, even the Rolling Stones left the 98 percent effective tax rate Britain — not a typo — for France in the early 1970s.

Should we be concerned about raising taxes and exploding spending? It just seems so easy because it is. As Almost DailyBrett has concluded before, it takes zero brains to raise a tax.

And don’t we all know, it will never be enough. The government will have reach down lower into income levels to find even more money it wants to spend.

As Winston said: “It is, perhaps, the end of the beginning.”

https://www.economist.com/leaders/2021/04/29/how-to-tax-capital-without-hurting-investment

https://www.nam.org/tax-increases-would-cost-a-million-jobs-13370/

https://www.businessinsider.com/joe-biden-net-worth-lifestyle-real-estate-family-wealth-assets-2020-1

https://www.usdebtclock.org/

https://www.realized1031.com/capital-gains-tax-rate

It Takes Zero Brains To Raise A Tax

It’s The Vaccine Stupid

Taxing the Fab Four; Exiling the Stones

It’s The Vaccine Stupid

“Don’t tell me it can’t be done. Show me how it can.” – Plaque in the office of the late House Speaker Jim Wright (1922-2015)

“If you’ve got a business, you didn’t build that. Somebody else made that happen.” — Former President Barack Obama

Did Apple become the first U.S. company to reach $2 trillion in market value today, about the same size as Brazil’s 8th largest economy? Yep.

Are the NYSE, NASDAQ and benchmark S&P 500 outperforming the Covid-19 impaired economy? Indeed.

Are share prices leading or lagging indicators? Leading.

There are those with oodles of stats of Covid-19 induced misery to share, and yet investors –including Generation Y and Z Robinhood and Baby Boomer Charles Schwab retail traders — are focused on the future, not the present.

It’s the vaccine stupid (ITVS).

Who will be the first to the vaccine finish line: AstraZeneca? Johnson & Johnson? Moderna? Did you note these are all publicly traded companies, not the public sector? The private sector is researching and developing the vaccine. The public sector (e.g., FDA) will approve the cure.

Will we pay subservient homage to the government or will we salute the publicly traded innovators with ticker symbols?

Almost DailyBrett has detected two dueling mentalities: One consumed with virus statistics: How the sky is falling and how many more restrictions our ever expanding government can impose upon its subjects. Their cups are ever half empty, knowing that “science” will never give the unanimous Corona virus all-clear sign.

The other libertarian and neo-liberal mindset is confidently looking to private sector innovation, developing a winning vaccine and a real solution rendering these Covid-19 statistics irrelevant. Their cups are always half full. And they don’t mind if these companies and their thousands of employees make a healthy profit in delivering a product (e.g., vaccine) that virtually everyone wants and needs.

Who is buying low and looking to sell high? The aforementioned retail investors, the huge retirement funds (i.e., PERS, STRS), the “buy side” mutual fund managers, and the “sell side” brokerage houses. The short answer is America’s investor class, which comprise approximately 55 percent of the nation.

The End of Buy Low Sell High?

“The problem with socialism is that you eventually run out of other people’s money.” — Former UK Prime Minister Margaret Thatcher

“It’s way past time we put an end to the era of shareholder capitalism.” — Former Vice President Joe Biden, July 9, 2020

Do we want to kill the goose laying golden eggs for more than half of the country, including literally thousands of younger investors (e.g., Robinhood)? Do we really want the “era” to come to an end? What’s next for the taxing class?

Is “shareholder capitalism” leading to the breakthrough vaccine, putting an eventual end to Covid-19? Do we want to terminate the system, which is the source of virtually all innovation (e.g., publicly traded technology and biotech companies) in this country?

Which is the greater sin? Being a shareholder? Believing in Buy Low Sell High?

How about: None of the above.

Why can’t Joe Biden be on the side of middle-class investors, particularly those putting their discretionary dollars to work for a better tomorrow? How about the old saying: “Capital goes where capital is rewarded”?

Is capital rewarded or simply consumed and redistributed by an ever-expanding trickle-down government?

Almost DailyBrett and others contend in the face of rapidly growing markets there is no other place to invest discretionary dollars. Considering the alternatives (i.e., microscopic bond yields and near zero bank interest accounts), active investors are building wealth in markets guided by the prospect of the coming vaccine.

The pessimists point to Covid-19 stats. Optimists point to the vaccine.

It’s the vaccine stupid.

https://www.cnbc.com/2020/07/09/biden-says-investors-dont-need-me-calls-for-end-of-era-of-shareholder-capitalism.html

https://fortune.com/2020/07/09/joe-biden-speech-shareholder-capitalism-economic-plan-american-manufacturing-jobs-build-back-better/

https://www.worldometers.info/gdp/gdp-by-country/

https://robinhood.com/us/en/

It Takes A Tech Company To Raise A Child

More precisely it takes a publicly traded technology corporation to educate a child with a major assist from parents.

The performance of Covid-19 stocks (i.e., Amazon, Netflix, Zoom Video) magnifies this point.

How many children are learning online? Millions.

Who built the online infrastructure that allows — uninterrupted by the pandemic — education for children around the globe? The answer lies with semiconductors, software, cloud, PCs, tablets, smart phones … everything and anything that makes access to the cloud possible.

The government didn’t build that.

How about Tim Cook and Apple?

Think about preparing a child for success in our 21st Century digital service-oriented economy without the vital assistance of Apple, Amazon, Facebook, Google, Microsoft, NVIDIA, Zoom Video and even companies, which are yet to be born … but will be tomorrow’s IPO stars. They are all coming from the private sector.

We recently took a short break from Covid and riots-disguised-as-protests to witness America delivering astronauts to the International Space Station for the first time since 1998 via privately held SpaceX.

If a child wants to dream about going to Mars, she or he would be well advised to look to billionaire stars of the Galaxy: Elon Musk of Tesla and SpaceX, Jeff Bezos of Amazon and Blue Origin and Richard Branson of Virgin Galatic.

The “Village” is yesterday’s collectivized story. Wall Street publicly traded technology companies are indispensable to our children’s education and prosperity today, tomorrow and conceivably forever.

When the world was agrarian and then industrialized, the Village on the Potomac meant more to children. The world changed. Instead of immediately outdated encyclopedias, there is instant access and reward through global knowledge that can found on Google. Try conducting major research without digital search engines.

In place of libraries, Amazon’s Kindle reader enables children to instantaneously download books. Need to generate documents (e.g., Word), presentations (e.g., Power Point) and spread sheets (e.g., Excel), welcome to Microsoft’s Windows operating system.

The exhaustive list goes on and on and includes corporations beyond the FAANG stocks (i.e., Facebook, Apple, Amazon, Netflix, Google), particularly Microsoft.

Where Else Are You Going To Invest Your Money?

The beauty of Economic Freedom is making own decisions about your discretionary dollars to invest in dreams, including retirement, a child’s education or a learning vacation. And when it comes to saving for a university education for daughters and sons, what better place for America’s Investor Class (e.g., 55 percent of all Americans) than US-based large cap technology stocks?

Almost DailyBrett is mindful that today’s small caps have all the potential to become tomorrow’s large-cap stars. The combined market capitalization (stock price x number of shares issued) of the five FAANG stocks and Microsoft equals $6.40 trillion, give a shekel or two.

The same companies that design and produce the tools to assist parents in raising and educating their children to meet and exceed the challenges to the 21st Century are also the corporations helping to fund educational programs through Corporate Social Responsibility (CSR). Similar to Arnold in The Terminator, we will harness the machines. There is no need for Andrew Yang’s government give-away Universal Basic Income (UBI) to society’s takers.

Our public school teachers from kindergarten to colleges and universities use technology company tools (e.g., PowerPoint) to prepare and deliver lectures and presentations far more interesting. The vast majority of these teachers invest through payroll deductions in their retirements (e.g., Buy Side State Teachers Retirement System STRS and Public Employees Retirement System PERS).

And what is the number one target for their investments: America’s publicly traded large cap technology stocks.

Almost DailyBrett recognizes that America’s publicly traded major technology players are not above criticism.

Where else can we find a greater collection of talent and innovation than in the USA, particularly California’s Silicon Valley (e.g., Apple, Facebook, Google) and the Seattle metropolitan area (e.g., Amazon, Microsoft) in the State of Washington?

These are the very same publicly traded technology companies replacing The Village and taking the lead in assisting parents in preparing our children to succeed in the digitally oriented service economy of the 21st Century.

Let’s not denigrate them, but salute them for raising a child.

Wall Street Is Main Street

America’s Rising Investor Class

Stop Dissing America’s Investor Class

The Folly of Attacking America’s Investor Class

Stop Dissing America’s Investor Class

“Since my election, United States stock markets have soared 70 percent, adding more than $12 trillion to our Nation’s wealth, transcending anything anyone believed was possible — this, as other countries are not doing well.” — President Donald Trump, 2020 State of the Union

In our tribalized society, we are obsessed with dumping groups of people into buckets.

Even more to the point, we microanalyze targeted demographic groups (i.e.., women, men, black, white …).

We also record, register and analyze responses by psychographic groups (i.e., income, education, creed … ).

Almost DailyBrett must stop here and ask: Are we spending enough time considering America’s growing Investor Class?

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90, and even 100 percent.” And IRAs too, Mr. President.

Who are these people? Are they just the “filthy rich?” Are they just the 1 percent?

Or are they mommies and daddies, brides and grooms, anybody and everybody investing in their retirements, college tuition for their children, dream vacations or to start a new business?

In 1960, only four percent of all shares traded were directly tied to retirements. Today that retirement figure is 50 percent of all the stocks traded daily on the NYSE and NASDAQ.

Almost DailyBrett will once again pose the question: Who are these people? And are we as a society giving them the love they deserve?

According to a 2019 Gallup quantitative survey of more than 1,000 Americans, 55 percent own individual stocks or stock-based mutual funds for their investment portfolios including retirement oriented IRAs and 401ks … and even the few who still have pensions.

Yes stock ownership took a hit during the 2007-2010 financial meltdown, but the trend has stabilized with the tailwinds of a record bull market.

No Fees Today, Tomorrow, Forever

“Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news.” — Paul Krugman of the New York Times upon Trump’s 2016 election

Guess America’s Armageddon was postponed.

Since November 2016, the NYSE has advanced from 18,332 to 29,290, up 59 percent, the NASDAQ has increased from 5,193 to 9,508, up 83 percent, and the S&P 500 from 2,139 to 3,334, up 52 percent.

And how are markets behaving now with a dovish Federal Reserve, Impeachment done, Brexit over, corporate earnings better than expected, robust consumer confidence, full employment and the American economy demonstrating its best performance in five decades?

Even though there always the risk of the Dow Jones Effect (e.g., what goes up at some point will come down), we are talking about a calculated risk … less so by the members of America’s Investor Class, who pay daily attention to the markets and more precisely their portfolios.

The major retail investment firms (i.e., Charles Schwab, Edward Jones, E*Trade, TD Ameritrade, Robinhood … ) have all waived their trading fees, making it even easier for investors of all income levels to participate.

And for investors concerned about the environment, society and corporate governance, there are specific ESG (Environment, Social and Governance) funds.

Publicly traded companies have learned they must not only be concerned about fiduciary responsibility, but corporate social responsibility (CSR) as well. It is more than driving the top-and-bottom lines and projecting a reasonable future expectations (Doing Well), but it’s also being genuinely mindful of a company’s caring for its employees, participating in communities and safeguarding the environment (Doing Good).

To top it off, America’s Investor Class is served by reasonable regulation of publicly traded companies by the Securities Exchange Commission (SEC), which mandates fair disclosure. The Federal Trade Commission (FTC), guarding against false advertising. And there is the Department of Justice, which prosecutes corporate crime (e.g., Enron bankruptcy).

And finally don’t these publicly traded companies make our products and services, employ millions and make our society more efficient? Apple puts a computer in our hands with its clever smart phones. Google is an instant encyclopedia of knowledge. Amazon is global shopping platform. Facebook allows us to keep track of friends and families.

If Something Isn’t Broken, Why Fix It?

Are global markets, perfect? What is?

Are the NYSE and/or NASDAQ playing fields 100 percent level? What are?

Is America’s Investor Class thriving and directly driving our consumer-based service economy? You bet ya.

Then why are there those who want to punitively impose federal taxes on each and every stock and mutual fund trade (i.e., Bernie and Elizabeth)? Who are they trying to punish? The real answer are the mommies and daddies of America’s Investor Class.

Yes, many of these investors are part of the upper class, and even the lower upper. The honorable senators need to appreciate the composition of America’s investor class also includes the upper middle, the lower middle … and each and every person who engages in dollar-cost averaging or continuous investing in both bull and bear markets.

America’s Investor Class puts its discretionary income into the nation’s best-of-breed publicly traded companies to pursue their dreams of happy retirements, highly educated children and/or bucket list vacations.

They matter. They vote. And they deserve our support … not dissing from always angry members of America’s political class.

https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx

https://www.usatoday.com/story/news/politics/2020/02/04/state-union-read-text-president-donald-trumps-speech/4655363002/

Fiduciary Responsibility vs. Corporate Social Responsibility