Tag Archive: Standard and Poors 500


“Maybe Tribalism is just in her DNA.” — Lloyd Blankfein, Goldman Sachs senior chairman, on Senator Elizabeth Warren

Who gets hurt if the federal government requires Warren Buffett to sell 6 percent (approximately $5 billion) of his $86 billion in wealth each year, every year?

A.) The “Sage of Omaha?”

B.) Middle-class investors attempting to grow their portfolios for retirement, their children’s education or that special vacation?

How about … both?

If Warren’s punitive wealth tax takes effect, Buffett will be selling his shares … lots of stock … not as a result of market conditions but because Washington D.C. redistributors mandate these stock trades in the name of the greater public good.

And who decides what is “the greater public good?

Warren’s punitive 6 percent wealth tax (unconstitutional?) exercise applies to all billionaires. There would also be a 1 percent levy for all Americans with wealth exceeding $50 million each.

Wonder how many in coastal blue states (i.e., Massachusetts, Connecticut, New York, New Jersey, California, Washington … ) exceed that $50 million wealth figure? The vast majority of these households worked hard, invested wisely … and this is the thanks they receive?

How much money, which could be used for individual investment, would come out of our economy? How many shares will be forced sales in our public exchanges?

What are the unintended consequences of these arbitrary sales for those saving for retirement or their children’s education?

According to The Economist the cumulative impact of wealth taxes and many other planned hikes would constitute a cumulative 2 percent hit on our nation’s $21.4 trillion GDP.

Could a Warren Recession follow? Almost DailyBrett will take the “over.”

Selling Political Masochism In A Robust Economy

The debate that you have in America or Britain about taxing the super-rich just doesn’t exist here.” Janerik Larsson of Sweden’s Timbro

“Vilification of people as a member of a group may be good for her campaign, not the country.” — Blankfein on Warren

Almost DailyBrett has always contended that group masochism is a political loser.

Asking people to sacrifice their economic freedom, and to vote against their own personal and family best interests is a prescription for defeat.

The Economist reported this week that American retirees owned only 4 percent of all publicly traded shares in 1960.

Fast forward to 2015 and we find that retiree investments (i.e., IRAs, 401Ks, pensions) constituted 50 percent of all shares. Without doubt that figure sprinted even higher in the last four years considering the stunning continuation of the bull market.

Since November 8, 2016 (hmmm … what happened that day?), the Dow Jones has risen 52.8 percent from 18,332 to 28,015, the NASDAQ 66.6 percent from 5,193 to 8,656, and the benchmark S&P 500 47.0 percent from 2,139 to 3,145.

Should public policy compel American today’s and tomorrow’s retirees to sacrifice a significant slice of their financial future every year?

Shouldn’t we have the freedom to decide when to buy and when to sell? Does the government really understand the maxim: Buy Low Sell High?

Why should an ever-expanding  government go to war against achievers, and by doing so take direct aim at America’s Investor Class? Some see it as a socialistic assault on capitalism.

Let’s simplify the equation: Why should our government usurp our economic freedom?

Some will contend that we should all, chill out. Warren is floundering in the polls. She won’t win the Democratic nomination. Right?

Didn’t the experts say the same thing about Jimmy Carter? They were wrong, and years of economic malaise (i.e., double-digit inflation, unemployment, interest rates) and a crippling recession were the consequences.

Many in the political class point to Sweden as an socialist model for the U.S. to follow. And yet, Sweden has higher percentage of billionaires (e.g., founders of IKEA, H&M, Volvo and Spotify), and greater income disparity than the USA.

And yet Sweden abolished its inheritance tax in 2005 and its wealth tax two years later.

Hmmm … maybe we should look to Sweden for guidance.

https://www.forbes.com/billionaires/#b93a39d251c7

https://www.economist.com/leaders/2019/11/28/inequality-could-be-lower-than-you-think

https://www.economist.com/briefing/2019/11/28/in-sweden-billionaires-are-surprisingly-popular

https://www.cnbc.com/2019/11/14/lloyd-blankfein-mocks-elizabeth-warren-maybe-tribalism-is-just-in-her-dna.html

“Be sure to put on your own mask before helping others.”  — Flight attendant instructions before take-off.

The author of Almost DailyBrett couldn’t be more excited for his students preparing to graduate on June 9.

He is also charged up for his recent graduates, realizing that they too have the wind in their collective sails. No more taking any job just to survive, but instead actually seeking out a “position” that serves as the stepping stone for a rewarding career.

Think of it this way: Job boards are passé. Today’s graduates have a unique opportunity to seek out positions with their employers of choice through informational interviews and networking. They can create their own positions and forget about taking the first offer.

They have a unique opportunity to build their own wealth, and later give back to those who are less fortunate. They can voluntarily live below their means and become The Millionaire Next Door as reported by Mssrs Thomas Stanley and William Danko in their New York Times bestseller.

There simply has not been a better overall economic climate for competing college graduates in the last two decades.

We are living in a Goldilocks Economy.

Surging Business

Better strike while the irons are hot, red hot. Like all economic moves upwards to the right, the trend which is now their friend will not last forever.

Last week, we learned that America’s $19.41 trillion GDP economy grew at a non-inflationary 2.6 percent pace after two consecutive quarters of 3.0 percent … all of this growth coming before congressional passage/presidential approval of the historic tax reform bill and regulatory relief.

Could we experience 4 percent GDP in 2018, leaving no doubt that we are in a robust growth economy? How’s that sound, graduates?

Unemployment stands at 4.1 percent. The next Department of Labor’s jobs report will be announced on Ground Hog Day. Will it be the same percentage over-and-over again or even lower, coming closer to the 3.5 percent threshold for full-employment?

The benchmark Standard & Poors 500 surged 22.46 percent in 2017, and it has already grown another 7.55 percent since … January 1.

Wages and salaries are rising, reflecting a labor shortage for skilled employees.

America’s inflation rate (e.g., Consumer Price Index) was 2.1 percent in December.

The Federal Reserve’s Fed Funds rate is 1.25 percent, before expected increases by Jerome Powell’s Federal Reserve.

Americans for Tax Reform is keeping tab of the 263 companies (so far) making new commitments in terms of repatriations of billions overseas, paying more corporate taxes, increasing wages, providing bonuses, investing in the economy and hiring more people.

For example, FedEx announced the spending of $1.5 billion to expand/modernize its Indianapolis and Memphis hubs, $200 million in raises for hourly workers, and $1.5 billion for employee pensions.

The future regardless of economic gyrations revolves around newly professionally educated students graduating, who are ready to the hit the ground running in our digitized service-oriented economy.

We need graduates, who can tell the story and tell it well through the written word, verbal expression and compelling multimedia presentations.

To some, major corporations are somehow the bad guys in any drama. How can one arrive at this misguided conclusion, when these entrepreneurial firms innovate and produce the products we use on a daily basis, hire millions, invest billions, and provide trillions in investment returns for the 54 percent of Americans, who constitute the Investor Class.

This fantabulous story cannot be taken for granted, it needs to be told and retold by skilled communicators, the types we are graduating.

The great irony is American corporations are doing more to combat income inequality by hiring, investing and creating greater shareholder value by means of a reduction in corporate tax rates from 35 to 21 percent.

Portland: Where Young People Go To Retire

Or do they go there to stagnate?

As a former Portland resident for five years, Almost DailyBrett has news for those who voluntarily choose not to work: The recession of 2007-2008 is in the rear view mirror.

As mentioned earlier, the economy is thriving and there are more than McJobs, but positions.

If one is playing video games or binge watching “original content” – the new streaming video Holy Grail – then one obviously has a clue about digital devices.

How about putting that knowledge into the coming new Lingua Franca, coding as suggested by Apple’s Tim Cook?

There is no reason to do as little as possible and selfishly allow someone else to work two or more jobs to support you.

The time to strike is right now in this surging economy, and it won’t last forever.

The record number of working-age men voluntarily not working is estimated at 32 percent according to the American Enterprise Institute (AEI).

Alas, this is not a question of can’t, but really a question of won’t.

Sad, very sad.

https://www.wsj.com/articles/thank-you-for-tax-reform-1517009242

https://almostdailybrett.wordpress.com/2014/07/29/the-death-of-californication/

http://www.cbs.com/shows/60_minutes/video/BHTRU7FEG7TQECAG8UrdNwwI_8xUbvTq/portland/

https://almostdailybrett.wordpress.com/2017/12/02/is-coding-the-new-lingua-franca/

 

 

 

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