From Birch Gold Group
Each of the presidential candidates obviously has very different economic focuses.
A recent article from Barron’s gives some insight into this, starting with the president: “If Trump is re-elected, he seems likely to continue with the policies pursued during his first term. At root, these were designed to let the private sector, the supply side of the economy, expand as rapidly as possible.”
In short, Trump’s economic focus leans toward job creation, wealth, and the betterment of private business.
Before the virus erupted, unemployment was running at historic lows, the stock market was at all-time highs (which it has recently regained despite the virus), and economic growth was proceeding at a solid if not spectacular pace.
The Barron’s piece also highlights the Democratic candidate’s economic focus: “Biden’s agenda, in contrast, is based on addressing America’s problems with economic inequality. The average household in the top 1% has 1,250 times more wealth than the average household in the bottom 50%.”
In other words, Biden is looking to redistribute economic opportunities (including some wealth) to the lower and middle classes.
As is usually the case with elected officials – and especially the case when it comes time to elect the president – each candidate’s position on the economic issues is starkly different.
Which obviously means the economic impact of either president’s policies will be different.
But despite these differences, there is perhaps an even more important question to consider: What if economic uncertainty will continue to rise in 2021 no matter which candidate is elected to office?
Either Candidate Could Have a “Tricky” Economy to Handle
An article from Al Root offers a possible economic outlook for 2021, stating simply, “Next year will be rocky.”
Keep in mind this is officially the last quarter of 2020, so there isn’t much time before a candidate is elected.
So if Root is correct, “rocky” is just around the corner. Here’s how his article explains the potential decisions that lie ahead for POTUS:
“In year four politicians do fiscal stimulus to get re-elected,” says Brian Rauscher, head of global portfolio strategy and asset allocation at Fundstrat. Years one and two are about making tough decisions about policy, deficits, and taxes.
In the graph to the right, you can see how much of an influence a president in their fourth year of a term can have on the economy.
Yet in our very unique, historic times, there is still plenty of cause for concern. For example, Root laid out the potential near-term “bubble” getting set to pop in three major market sectors:
Tech stocks are on fire, but that has left the Nasdaq trading at about 28 times estimated 2021 earnings. The S&P 500 is at 20 times. The Dow is at, roughly, 19 times.
At some point, fundamentals have to take over, at which time “frothy” markets could potentially enter a major correction.
It doesn’t seem like either presidential candidate has a good answer for that fast-approaching challenge.
And don’t forget the Fed. The Federal Reserve will almost certainly continue with the same policy of near zero interest rates, buying up piles of debt, and trying to keep inflation under control.
These policies could have a much bigger impact on your savings than Trump or Biden would.
Good to Prepare Now (No Matter Who is Elected President)
An election year could foreshadow dramatic changes on the horizon, no matter what side of the aisle your candidate sits on.
So now is a great time to double check your savings to ensure you’re prepared to ride out the storm.
Holding assets such as physical gold and silver can help to add a measure of stability to your retirement in the wake of November’s election madness.
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
I’m tired of the whining of inequality. I’ve never been a big wage earner but realize others made better choices or worked harder or smarter to get to where they are. Or if they are Democrats they lied and stole and sold their souls.
And yet, there is some truth to the old saying:
“behind every great fortune lies a great crime.”
The above isn’t strictly true, in part because so many of today’s criminals either are, or can access, the best lawyers and politicos; thus, their misdeeds are very often entirely ‘legal’.