Asian shares rise after technology-powered rally on Wall St


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The 3rd quarter is usually the best for corporate earnings but Biden-flation is casting a long shadow over the market.

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but Biden-flation is casting a long shadow over the market.

yet the DOW is still 10~15% higher than when Trump was in office

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Biden-flation is casting a long shadow over the market.

I think markets like Biden-flation. If the value of your money is decreasing the value of your stocks denominated in value of that value losing money goes up.

The problem for the market will be when the central bank stops its emergency policy settings, all this excess money printing and buying up mortgage backed securities and government debt.

I usually do it in December, but this weekend I did my annual investment portfolio rebalancing. I found that my developed markets real-estate exposures have been a top performer this year. So why the heck has the US Fed being buying so much of these mortgage backed assets? It’s crazy. And well it helped me make some money probably, but was that the goal?

Also developed markets foreign stocks have done well this year.

When the Fed starts to taper it’s crazy unnecessary stimulus, then the markets might start to not like it as much, I am guessing, hence I did my rebalancing exercise now rather than wait for Fed to start commencing a move towards appropriate policy perhaps at the end of the year.

The ones that suffer for Biden-flation and inflation in general (which central bankers crave) are those on no or low income.

If the central planners (and their enablers and supporters) actually cared about those people they would stop their crazy quest for high inflation, which is actually benefiting people like me who have investment portfolios.

the DOW is still 10~15% higher than when Trump was in office

As it should be. The new administration has not yet messed up the tax system yet, so the prior administrations tax reforms remain effective.

Really important to note that 2021 tax revenue numbers came out last week, putting US tax revenues at record highs - despite the claims of 1.9 trillion dollar “unfunded” “tax cuts for the top 1%” that I read some opponents talking about. (I also see that the top 1% pay 40% of US income tax revenues, which seems more than their “fair share” to me)

So US tax revenues are up after the tax rate cuts - this is something that JFK talked about in his day too, and even after the corona virus pandemic when you might think revenues could be down because of the negative economic effects, they are up to record levels. Lower the rates, broaden the base, and increase revenues.

In both Japan and the US some are talking about hiking this and that tax rate. If the purpose is to increase tax revenues, it’s the wrong prescription. If the purpose is to placate a misled segment of the public, go ahead but it’s bad policy from the perspective of running the government well.

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