A Subtle Reminder About Republicans, Democrats, The S&P 500 And Deficits
Recent momentum for Pete Buttigieg in the Democratic primary comes as something of a relief for market participants who, thanks in no small part to a relentless propaganda campaign amplified by CNBC, are scared to death of an Elizabeth Warren nomination.
We call it "propaganda" because irrespective of what you think about Warren's policy proposals (which, it's safe to say, the majority of Americans haven't even read, despite them being readily available on her Medium account), you'll probably a
Thank you for a crystal clear presentation of the facts. I fear that theTrumpets will never be convinced by facts, not
matter how clearly you present them.
Two key policy proposals which worry me, when it comes to the stock market (as opposed to the economy).
Warren would be inclined to limit stock buybacks. If they were cut or eliminated, the supply-demand balance wd turn negative, at least in the short term.
#2, banning fracking on day one wd knee cap capex, again at least in the short term.
The latter idea wd probably mean she loses Pennsylvania and Ohio so it may be an academic exercise.
Warren isn’t in it to completely screw Wall Street. She doesn’t want Boomer 401k’s getting ripped to shreds along with those investors with 8+ figure portfolios. What she does want is a more transparent financial industry that does what it was originally intended to do–efficiently allocate capital.
I agree with H. If she can create middle class cash in a “bigly” way by cutting student debt and healthcare costs or in some other fashion, it could give the economy a major boost.
Regardless, any major equity selloff related to her potential election would be a buying opportunity.
I just hope at some point we can move past the notions of accepted “wisdom” that Republicans care about deficits, that Democrats crash the economy and that if we just make it a litle easier on the job creating 1%, huge benefits will flow to the rest of us. The opposite is true in all three cases, but if there’s anything this country can’t seem to reliably quit, it is false narratives.