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Dow 50,000 — It's Not Why You Think |
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Dow 50,000!... The real driver of the stock market… Have you heard of the "Presidential Bypass"? It's a legal loophole the rich use to keep their money. And though you might not know it, you can use the same exact loophole to slash your taxes. Legendary investor Robert Kiyosaki gives the details here.
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Dear reader, |
I note that the Dow Jones Industrial Average scaled 50,000 this week. |
Thus there is added joy in Heaven. |
The stock market drummers are pounding their tom-toms in celebration. |
Wall Street's buglers are bugling away. |
The president — unsurprisingly — is keen to claim the laurels: |
The "Experts" said that if I hit 50,000 on the Dow by the end of my Term, I would have done a great job, but I hit 50,000 today, three years ahead of schedule — Remember that for the Midterms, because the Democrats will CRASH the Economy!... |
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Record Stock Market, and National Security, driven by our Great TARIFFS. I am predicting 100,000 on the DOW by the end of my Term. REMEMBER, TRUMP WAS RIGHT ABOUT EVERYTHING! |
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Do the president's Great TARIFFS explain Dow 50,000? |
I am not half so convinced. Yet I confess that I do not know. I am, as they say, willing to listen. |
The Supply-Siders Did It! |
Meantime, the Committee to Unleash Prosperity — a champion of "supply-side" economics — labels Dow 50,000 a "supply-side miracle." |
More from which: |
This didn't happen by accident. It's the triumph of good economic policy —- including the steep decline in tax rates and the taming of inflation. |
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At the start of this bull market of all bull markets in 1981 — when Ronald Reagan came into office — the Dow was just under 1,000, inflation was running at about 12%, the top income tax rate was 70%, the corporate rate was 46%, the estate tax was 70%, and the capital gains rate was 28%. |
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The economy was in a state of collapse. |
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Just so. I am heart and soul for price deflation. I am likewise heart and soul for tax reductions — provided they are twinned with spending cuts. |
That is because tax reductions absent spending reductions equal deficit additions. |
Alas, the spending reductions were not forthcoming. We await them yet. |
Thus the nation's debt has swollen from $1 trillion in Oct. 1981… to $38.6 trillion today. |
Meantime, its gross domestic product ran to some $3.21 trillion in 1981. 2025's gross domestic product approximates $30.5 trillion. |
That is, the nation's debt has expanded 3,760% since 1981… while the gross domestic policy has expanded 850%. |
And so the nation's debt-to-gdp ratio has trampolined from 31% in 1981 to 124% in 2025. |
Are the supply-siders responsible for today's stock market superexcellence? |
Well friends, the rooster likes to take credit for the dawn. |
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Is It All About AI? |
Is the stock market up and away because of the artificial intelligence mania? |
I believe the answer is yes. Yet only to a certain degree. |
We must also account for the money supply — the M2 money supply in particular. |
The M2 money supply includes: saving deposits, time deposits, certificates of deposit, and money market funds. |
And when the M2 money supply is on the jump, stocks tend to jump alongside it. |
Explains Google's artificial intelligence platform: |
M2 (currency, savings, and checkable deposits) acts as a snapshot of market liquidity. When M2 grows, it acts as a "fuel" for asset prices, including stocks and real estate… |
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Studies indicate that stock values have historically correlated strongly with M2 growth over time, sometimes even more closely than with corporate earnings or GDP… |
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During 2020-2021, massive increases in M2… directly corresponded with a major, rapid rise in stock prices. |
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The Money Supply's at Record Highs |
And so the question rises naturally into the air: Has the M2 money supply increased in recent months? |
The answer is yes — and yes again. |
Once more, artificial intelligence furnishes the answer: |
The U.S. M2 money supply is growing, having hit a record high of over $22.4 trillion in December 2025, rising roughly 4.6% year-over-year… As of January 2026, the M2 money supply has continued to rise to new all-time highs. |
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And by the vaguest vagaries of chance… the stock market too has risen to new all-time highs. |
"Quelle coïncidence!" as the Japanese say. |
The money supply — in fact — presently rises at its highest rate since July 2022. |
Yet a curious fact presents itself. |
Hmmm… |
The money supply generally expands with an expanding economy. |
Contrary to the beliefs of many, private banks provide the heaping majority of money supply expansion — not the Federal Reserve. |
Thus when the economy is hale, when it is undergoing expansion, private commercial banks extend loans. |
Through the miracle of fractional reserve banking, these loans expand the money supply. |
Yet many metrics indicate the economy is not undergoing expansion. |
Layoffs are on the increase. As are bankruptcies and delinquencies. |
Yet despite all hell's angels… the money supply expands. Why? |
We must not forget about the Federal Reserve and its tricks. |
The Easiest Financial Conditions in Nearly Four Years |
Last September the Federal Reserve reduced its target rate and resumed quantitative easing — though under a different label. |
Thus financial conditions have eased. And with them, the constraints on system liquidity. |
Reports the Kobeissi Letter: |
US financial conditions are easing… |
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On a 3-year lookback basis, financial conditions have loosened to -0.9, the easiest since March 2022. |
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This means financial conditions are now looser than the average seen over the last 12 and 36 months. |
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Excluding the 2020-2021 pandemic period, conditions are now at their easiest since 2011... |
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A new era of monetary policy has arrived. |
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I am tempted to state that the new era of monetary policy strongly resembles the former era of monetary policy. |
Do you seek a reason for Dow 50,000? |
Do not look to tariffs. Do not look to supply-side economic policies. Do not even look to artificial intelligence |
Look instead to the money supply. |
There — I believe — you will find the primary answer. |
Brian Maher |
for Freedom Financial News |
P.S. Here's a question for you: |
Did you know that two of America's most famous businessmen legally paid $0 in federal income tax for years? |
That's right, they paid $0 in federal income tax for years — as in nada. |
But how? |
It's not a scandal, it's a strategy. It's a 100% legal method of using the tax code to your advantage. |
It turns taxes from a burden into a wealth-building tool. |
Now, legendary investor Robert Kiyosaki is revealing exactly how it works. |
Go here to learn how to make the tax code your friend. |
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