Why the Dow Hit 22,000
The strongest earnings, lowest unemployment (read: fast new job creation), highest wages, most rapid economic growth, and strongest consumer confidence in a decade, well before Barack Obama.
People are investing again. And spending again. And have hope again. And have reason for hope again.
Naysayers think this is a bubble, but it isn’t. Greenspan is right that the bubble is in bonds, not stocks, due to a Fed that’s suppressed interest rates far too long.
But ignore all that: here’s your key takeaway, as I’ve been telling you since November. The rapid upward correction (yes, correction) in stocks is the result of removing the weight of Obama and Clinton from the economic equivalent of a spring. The market had long since priced in anemic economic growth, continued job loss, lower wages (and a flood of illegal aliens pushing wages downward), and an ever spiraling regulatory and tax burden that made new investment unattractive if not outright foolhardy.
On November 8th, that weight was lifted off the spring.
Now, just imagine how much higher that spring might bounce if Congress did it’s job too, enacting Donald Trump’s truly transformative tax plan and real repeal and replace.
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Rod D. Martin, writes at RodMartn.org, and is founder and CEO of The Martin Organization, a technology entrepreneur, venture capitalist, author and conservative activist. He is a member of the Board of Governors of the Council for National Policy, a Past President of the National Federation Republican Assemblies. and a contributing author to the ARRA News Service.
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