But the stock markets sure don't act like the ship is taking on water. All four major stock indices close at new record highs on inauguration day. Peter said this proves that the stock market rally really didn't have much to do with Donald Trump.
If the stock market gains were really attributable to Donald Trump's policies, and Joe Biden is already unwinding those policies and reversing as many as he can by executive order, why are all the stock markets making record highs? To me, that shows you that the stock market couldn't care less about Biden being president, because it didn't matter that Trump was president. This stock market rally that Donald Trump took credit for was not the result of Donald Trump's policies."
Peter has said from the beginning that the stock market wasn't going up because of Donald Trump. And it didn't go up on inauguration day in anticipation of Joe Biden. The stock market is going up because of the Federal Reserve.
Wall Street knows that. And they know that despite the change in the White House, there is no change at the Federal Reserve. Fed policy is going to be consistent. It is going to remain the same. And I think Joe Biden sent a message to Wall Street of the continuity by nominating Janet Yellen, who was the head of the Federal Reserve, to kind of cement in the minds of the markets, or the participants in the markets, that it is business as usual at the Fed — that they will keep in printing money, they will keep interest rates artificially low, in order to sustain asset bubbles. And that is what the stock market is celebrating."
At this point, it doesn't really matter who is sitting in the Oval Office as long as the Fed continues to supply the monetary heroin.
Looking back at the Trump era, it's pretty clear he failed to "Make America Great Again." To do so would have required stepping on a lot of political landmines while dealing with the deep-rooted problems of Social Security, Medicare and the national debt – the so-called third rail of politics.