Five Key Things Trump Needs to Do Well

Ktoyou

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They approach a quarter-trillion dollar market cap. They have an annual dividend yield of 1.28%, and with a market cap of $234 billion, that amounts to a fair bit of money. And their earnings amount to about 6% of their market cap, which is also...a ton of money.

They seem to be doing well enough.



And?



Too much cash out...and lack of liquidity? How does that work?



I don't disagree that we could see another financial crisis, although we'd probably disagree on why. We seem poised to roll back the meager restrictions pushed through after the last crisis, which would allow the banks to reopen the casinos that bankers use other people's money to gamble with.

The money they count on is out on bond loans.

We have had far too low interest rates and that is why the DOW is over 20,000. people do not what to own bonds at 3% when they can hold high-yield equity funds that pay 3% and have risen 14% this past year. The stock market is way over valued now.
 

Ktoyou

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The economic data shows a massive transfer of wealth within American society to the wealthy within the last 47 years - starting with the Reagan Administration.

The conservative mantra was that tax cuts were supposed to stimulate the economy - which contributed to massive government debt without the desired results.

If you must cut taxes, there has to be strings attached - starting with the condition that recipients must show proof that it was reinvested in the American economy.

The economy is doing fine for now. The stock market is inflated, yet people keep buying. Part of the reason for the discrepancy is when the financial crises happened in 08, many sold low and did not buy back in.

If one invested in Vanguard Primecap in 09, one would have trebled their money now. The problem is those who might need to money to live on, do not take the gamble, while the most wealthy heavily invest.

This is an investment issue, not a corporate issue.
 

rexlunae

New member
The money they count on is out on bond loans.

That's....pretty much their business.

We have had far too low interest rates and that is why the DOW is over 20,000.

You'll notice, though, that the rate charged to consumers for credit, and even businesses is quite a bit higher. That means that the banks are getting an extremely good deal. Some of that is probably down to bank consolidation.

I'm not sure how this bolsters the point you were making above, though.

people do not what to own bonds at 3% when they can hold high-yield equity funds that pay 3% and have risen 14% this past year. The stock market is way over valued now.

Yes, it would be pretty foolish to expect high returns like that. On the other hand, things like bonds tend to be quite a bit less risky than stocks. That's the trade-off you get. Stocks are risky, but you can make real money if you invest smartly and boldly. If you just want to preserve your equity, you can buy some bonds. There's a place for both in a properly diversified portfolio.
 

jgarden

BANNED
Banned
they weren't imported - they were bought offshore, through offshore corporations (often shell) and registered offshore

iirc, if they wanted to cruise US waters for more than a certain amount of time, they had to lease them back from themselves
The IRA could close these loopholes if Congress had the political will

BUT

we all know that political contributes dictate who gets to avoid their fair share when it comes to taxes with Donald Trump being the prime example!
 

ok doser

lifeguard at the cement pond
The IRA could close these loopholes..


not really - they weren't doing anything that wasn't also done by legitimate businesses - if you closed those loopholes, you'd cause even more distress for cruise companies, shipping companies, boat rental companies...

no, they were cleverly taking advantage of existing law - that's the way the game's played

put a hurting on my friends though
 

Ktoyou

Well-known member
Hall of Fame
That's....pretty much their business.



You'll notice, though, that the rate charged to consumers for credit, and even businesses is quite a bit higher. That means that the banks are getting an extremely good deal. Some of that is probably down to bank consolidation.

I'm not sure how this bolsters the point you were making above, though.



Yes, it would be pretty foolish to expect high returns like that. On the other hand, things like bonds tend to be quite a bit less risky than stocks. That's the trade-off you get. Stocks are risky, but you can make real money if you invest smartly and boldly. If you just want to preserve your equity, you can buy some bonds. There's a place for both in a properly diversified portfolio.
Take T for example, it pays a good dividend, over 4%, and if the market goes down, as it will this year, it would be my bet T will end up even or higher at years end. while a bond fund, at 3% is likely to have a long enough duration to lose money over the year.

people need to hold bond funds because, as you stated, they are less volatile. What can happen with stocks is a big loss if things get worse. This mean the smaller investors will be wiped out.

Those who refuse to hold bonds had better not need their investments in their lifetime if they are past middle-age.
 

rexlunae

New member
Take T for example, it pays a good dividend, over 4%, and if the market goes down, as it will this year, it would be my bet T will end up even or higher at years end. while a bond fund, at 3% is likely to have a long enough duration to lose money over the year.

people need to hold bond funds because, as you stated, they are less volatile. What can happen with stocks is a big loss if things get worse. This mean the smaller investors will be wiped out.

Those who refuse to hold bonds had better not need their investments in their lifetime if they are past middle-age.

What people should do is balance the risk with the payoff, depending on how sensitive they are to losses.

The real problem with the balance of our society is that conservatives have been convinced by self-interested corporatists that the government, which is the only institution that can serve as an effective counter-balance to their economic advantage, is their enemy. And so, they accept less and less protection from profiteering businesses, who walk away with more and more of the money. Most people are not sophisticated enough to stand up to these huge multi-national corporations, so they get taken advantage of.
 

Ktoyou

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Hall of Fame
Corporations are more and more becoming taken advantage by huge stock holders. look at Warren Buffet. He could swing Wells Fargo and end up doubling his holdings. This and leverage and shorting the market is becoming more a problem than corporations.
 

Danoh

New member
look at trump, all the businesses he started, all the people he employed

Judging from their many, many legal filings against him over the years for his repeated financially stiffing them.

Including the many illegal aliens he has knowingly hired over the years.
 

Ktoyou

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This coming week, we might get wind of future corporate tax cuts. It may take longer to have any individual tax breaks. Fed seems fed up with managing interest rate increases. We will have to see how the economy performs over the first quarter.
 

Jonahdog

BANNED
Banned
If you make the case, Donald trump lacks the forthright of old Kat, you would be right.

Muslims are bad new because of who they are first, not what they might do. They have ingrained beliefs, contrary to western society. They would be better off locating to POLAND.

And you know this because of the great # of Muslims you know and your extensive study, either that or a Breitbart subscription.
 

Ktoyou

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And you know this because of the great # of Muslims you know and your extensive study, either that or a Breitbart subscription.

Not interested in knowing any Muslims. This dressing like nuns can keep away form me, or a kick in the rear.
 

Crucible

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Banned
Not interested in knowing any Muslims. This dressing like nuns can keep away form me, or a kick in the rear.

A modest women is a holy woman- say what you want about Muslims, but that's a universal concept of Abrahamic religion.
 

Danoh

New member
Trump is just trying to generate some "red meat" to satisfy the demands of his "Islamophobic" supporters, without totally alienating those major Muslim nations that the US still needs for economic and geopolitical purposes.

This has nothing to do with real security, just creating the illusion - the real directors of American's security and the head of the Joint Chiefs are no longer members of the president's National Security Council (NSC).

Their Bibles don't have the passage that says "perfect love casteth out fear."

Out of their bigotry, in their ignorance.

Fact is, only as people like Muslims live in America will American values impact them.

Especially as their children take said values on as their own.

It is how our Great Melting Pot has always worked.

Case in point, a Muslim friend of mine raised in the States - his wife recently divorced him.

His old man was not too happy about it; but other than the normal emotional lows of a divorce, he has adapted just fine.

Just like Americans, they take turns at spending time with their two children.

And just like an American, she at times takes her sweet time about picking them up, lol.

Another friend of mine who's parents are from the Dominican Republic - we were out one day when - o never mind, we're dealing with bigots on this forum - in the various Trump drones on here..
 
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Danoh

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