Important headlines for November 10th:
Bottom Line: These are the stories you don't want to miss (but probably would if I didn't find them for you)...
Dow's 1-Year Gain Since Trump's Victory Is Biggest Since 1945 Victor Reklaitis, MW
This is important for many reasons. First, the rally is the third biggest in US history. As you know percentages get much harder as the numbers get bigger. The numbers are staggering. Not only is the Dow up around 25% year-over-year but the Nasdaq is up 30%! Approximately $5 trillion in new wealth has been created by the growth in corporate values in one year. What's $5 trillion by comparison? The entire federal budget is around $4 trillion in a year. That's right, more value has been added to investor accounts than the US government spent over the past year! Substantially more. 52% of adults hold stock market based investments. While I wish the figure was higher the fact remains that more than 1 in 2 Americans participated in the single greatest wealth creation event since the end of WWII.
If nothing else were achieved by the Trump administration in year 1 but this it would be the most successful first year economically for any President since Truman.
On the other side of the coin Senate Republicans are doing everything they can to fail to pass the agenda they were elected to enact. The latest out of the Senate GOP plan is a delay for corporate tax reform until 2019, continuing to treat death as a taxable event for the government and sticking with seven freaking tax brackets! What's worse is the seeming embrace for the CBO's bunk economics. The easy excuse for the Senate on this one is that the CBO said it'll add too much to the deficit. Here are a few important facts. The JFK tax cuts went into effect in 1964. Average tax rates were cut by 20%. Here's what happened to the federal budget:
The federal revenue in 1963 was $107 billion, in 1964 $113 billion, in 1965 $117 billion, in 1966 $131 billion in 1967: $149 billion
- Revenue to the government grew by 39% in the five years after the JFK tax cuts
The Reagan tax cuts went into effect in 1981 and averaged a 25% reduction in rates - here's the five-year outlook on revenue:
FY 1981 - $599 billion, FY 1982 - $618 billion, FY 1983 - $601 billion, FY 1984 - $666 billion, FY 1985 - $734 billion
- Revenue to the government grew by 23% in the five years after the Reagan cuts
This is basic supply-side economics that the CBO ignores and Senators are cowards to. The budget nonsense is a farce that has no basis in economic fact, reality or history.
Until Monday...