by | ARTICLES, GOVERNMENT, OBAMA, POLITICS, POTUS, TAXES, TRUMP
Part of Obama’s terrible legacy was his frequent abusive use of Executive Order, even maintaining a “We Can’t Wait” page on the White House website. From changing student loan rules to immigration reform, Obama was rightly chided for making major policy changes without going through Congress.
It is therefore egregious that President Trump should decided to enact a 25% tariff on imported steel and a 10% tariff on imported aluminum products under section 232 of the Trade Expansion Act of 1962 (the provision that allows additional tariffs when national security is affected).
When our largest importer of steel is Canada, followed by Brazil, South Korea and Mexico, it is abhorrent to invoke such a tariff under these pretenses. This particular Executive Order rivals Obama in making up lies to justify illegal executive action.
It also makes it possible for the next Democrat President to abuse presidential power by saying: “It’s not as big a whopper as Trump’s saying that tariffs on steel are needed to protect our nation’s security”. This is truly a terrible precedent.
by | ARTICLES, BLOG, BUSINESS, ECONOMY, FED, FREEDOM, GOVERNMENT, POLITICS
Did you even notice that whenever the economy issues good results (a strong jobs report, etc.), the stock market goes DOWN? Logic would seemingly have it be the opposite. If the economy was strong, one would assume the stock market would respond positively. But often that’s not really the case.
For years, I couldn’t understand it — how stupid could the market be? Why would the market do poorly? Wall Street professionals claim to understand it. They point out that the stock market and economy are not necessarily affected the same way. When the economy is strong, the market has often already gone up in anticipation of the improving economy. But with the stronger economy, the Fed is likely to hike interest rates, threatening the strong growth going forward. Also, with interest rates rising, investors have the alternative of earning fixed, safe rates of return by buying bonds.
Though I do follow that logic, I do not agree with it. My strong belief is that as long as the economy is strong, with sound existing economic policies in place, I believe that financial growth and profitability will continue. And I would view downturns caused by positive financial results as a buying opportunity.
The economy has begun the road to renewed growth – finally getting rid of the Obama stagnation caused by increasing taxes, stifling regulation, and anti-business sentiment. It’s unreasonable to believe that the concern of interest rates should have more sway than a growing economy. Even if interest rates rise, does anyone really believe that a business will forego an expansion opportunity just because borrowing costs are 1 or 2 percentage points higher?
Of course, it would make sense for the stock market to become weaker if President Trump goes ahead with his economically ignorant tariff and anti-free-trade policies, as well as his economically stagnating immigration restrictions.
But as for now, the fluctuations are a confirmation of a stronger economy and the multiple opportunities afforded to investors.
