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In reply to the discussion: A pessimistic prediction from Joy-Ann Reid. Read it anyway: she could well be right about everything [View all]DinahMoeHum
(21,783 posts)9. Bill Gross of Janus Capital had this to say the other day. . .
https://www.janus.com/insights/bill-gross-investment-outlook
(snip)
His tenure will be a short four years but is likely to be a damaging one for jobless and low-wage American voters. They were the force for Trump's flipping the Midwest into a Republican Electoral College victory. But while the Fox promised jobs and to make America great again, his policies of greater defense and infrastructure spending combined with lower corporate taxes to invigorate the private sector continue to favor capital versus labor, markets versus wages, and is a continuation of the status quo.
(snip)
Populism is on the march and a Trump victory will do little to halt its advance in future decades. If anything, it is demographically baked in the cake. Investors, as The Economist astutely pointed out, face a possible no-win situation. Unless the worker's share of GDP reverses its downward trend, and capital's share peaks, then populists worldwide will reject establishment parties in almost every future election initiating in some cases growth-negative policies revolving around trade, immigration, and yes, in Trump's case, lower taxation that may lower GDP growth, not raise it.
Global populism is the wave of the future, but it has taken a wrong turn in America. Investors must drive with caution, understanding that higher deficits resulting from lower taxes raise interest rates and inflation, which in turn have the potential to produce lower earnings and P/E ratios. There is no new Trump bull market in the offing. Be satisfied with 3-5% globally diversified returns. The Wall Street, finance-led hegemon is fading. The Populist sunrise has barely broken the horizon.
(snip)
(snip)
His tenure will be a short four years but is likely to be a damaging one for jobless and low-wage American voters. They were the force for Trump's flipping the Midwest into a Republican Electoral College victory. But while the Fox promised jobs and to make America great again, his policies of greater defense and infrastructure spending combined with lower corporate taxes to invigorate the private sector continue to favor capital versus labor, markets versus wages, and is a continuation of the status quo.
(snip)
Populism is on the march and a Trump victory will do little to halt its advance in future decades. If anything, it is demographically baked in the cake. Investors, as The Economist astutely pointed out, face a possible no-win situation. Unless the worker's share of GDP reverses its downward trend, and capital's share peaks, then populists worldwide will reject establishment parties in almost every future election initiating in some cases growth-negative policies revolving around trade, immigration, and yes, in Trump's case, lower taxation that may lower GDP growth, not raise it.
Global populism is the wave of the future, but it has taken a wrong turn in America. Investors must drive with caution, understanding that higher deficits resulting from lower taxes raise interest rates and inflation, which in turn have the potential to produce lower earnings and P/E ratios. There is no new Trump bull market in the offing. Be satisfied with 3-5% globally diversified returns. The Wall Street, finance-led hegemon is fading. The Populist sunrise has barely broken the horizon.
(snip)
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A pessimistic prediction from Joy-Ann Reid. Read it anyway: she could well be right about everything [View all]
DFW
Nov 2016
OP
I think she's using the word as shorthand for "old school USSR, only with BMWs and high fashion"
MADem
Nov 2016
#15
LOL--most of the "Obama Scolds" here (most of whom have departed or been tossed over the side)
MADem
Nov 2016
#16
Hillary's not terribly "right." She's a product of her times, and has a JFK attitude on defense.
MADem
Nov 2016
#18
I don't think so. I think she is left of him on social programs, particularly women/kids issues.
MADem
Nov 2016
#20
Attacking Hillary and letting Trump win was not the way to move the Democratic Party left.
athena
Nov 2016
#26