Despite the business media’s claims that the Stock Market is tumbling due to tariffs and other nonsense, the direct cause is the Democrat takeover of the House of Representatives.

It’s not simply that the Democrats took over the House; it’s what they said they would do if they did.  They promised impeachment of Justice Kavanaugh and President Trump, they promised endless and specious investigations into everything Trump has done and wants to do, and they plan to block everything Trump has on his agenda.  In the meantime, the Democrats will try to pass bills, and most will be vetoed by President Trump.

Stock Market investors generally do not have a problem with a divided Congress, mostly because they like gridlock, but in this case they anticipate a form of gridlock that will be bad for their investments.  As a result, many investors are selling their stocks and investing in long-term bonds and precious metals.

Unfortunately, the Investor Class includes millions of employees who have 401ks, and most cannot immediately change their investment options.  They are the ones who will be most hurt by this downturn.

If you will recall, I told you in a previous message that this would happen if the Democrats took the House.  Everything Liberals touch is eventually ruinous.  What I find amusing is the fact those idiots totally screwed themselves too!

The good news is that job growth will slow, but not collapse.  Sure, investment creates jobs, but it was the Trump tax cuts and Trump’s massive reduction of job-killing regulations, mostly created under President Obama, that has spurred the greatest job growth.  So in this case we’ll see that the demise of the Stock Market will hurt the 401k investors, but the fed is raising interest rates that will benefit retirees’ cash savings accounts with higher interest returns.

Look for just about nothing to happen favoring Trump’s agenda, including the wall, for the next two years.  People won’t be raking in the massive investment returns they enjoyed since Trump’s election, but at least they’ll still have jobs.

Carl F. Worden

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