You really think so? How? There is a profit growth problem. Everything you see is financial engineering, not profit growth. Reagan presided over a boom in profits...and yes, he lowered taxes quite a bit and created great conditions for businesses, even as his Fed Chairman Volcker had tamed inflation and we had pretty low debt to GDP, even after the Reagan debt binge. So it was a bit of different time. Trump will possibly not get his tax cuts. He didn't get his Obamacare repeal. This Congress hates Trump. Everyone loved Reagan and the liberals and conservatives of that time actually cared more about the country than their individual differences. They actually worked together on a lot of bipartisan laws. I remember that time. It was very different from today, where there is open warfare between liberals and conservatives and no one gives two shits about the health of our country long term. In addition, I think the Americans of today are far more willfully ignorant of things we knew for certain back then...like socialism and communism destroys economies, but today the young folk have totally forgotten those lessons, even as Venezuela is ongoing proof. I think Trump is a great showman, but so far, I haven't seen much substance...just a lot of bluster. I share many of his frustrations, but I don't think he's a great leader. I think he has no clue how to build coalitions to get his agenda accomplished. He doesn't know how to run this ungovernable country we have. In addition, he has a Congress that hates him...on both sides of the aisle. They want him to fail and damn the consequences to our country. Lastly, we have a war with North Korea looming quite menacingly. That will be a conflagration that will kill hundreds of thousands of people and deliver a one two punch to our economy.
I think you are far too optimistic. I hope you are right, but reversion to the mean usually happens after a snap lower that is equal to the period of overvaluation. |
