The Great American Reset

As you might know the stock market and the price of oil are rocketing downward and the Dem media are trying to create an uproar on the job loss fears.

The fervor is more about political points gained than in compassion for Americans.

As the Dow, S&P, NASDAQ and Russell indexes drop, my first thought is that they’re coming down to realistic prices. Despite what the market analysts say about valuations, these few companies on the S&P listed companies weren’t doing that well. And many analysts noted that the other 497 companies on the S&P sucked.

Now as revenues fall and costs rise, we’re seeing what all these companies are made, of how it will be without government handouts. It was a house of cards bolstered by FOMO enthusiasts and was never really on solid ground. The emphasis on AI was never really grounded in anything real. The monopolies and conglomerates saw AI as a way to reduce their workforce costs and redeploy workloads to those remaining.

But they had no plan to replace the jobs.  They didn’t adopt AI with the “it will create new jobs” promise. They only want to cut costs. And the stock market itself hasn’t rotated into small caps. The Russell 2000 stayed as it was with the same overall rate of growth as the others.

Trump Tariffs Will Draw in Trillions in Investment Funds

What other possible way could the USA attract trillions in direct foreign investment, which is a key signal in the value of a country’s economy?  Who in their right mind, would invest in country mired in regulations, high taxes, crippling debt, who is overrunning their national debt limit and can’t pay the interest on its debts?

Trump’s tariffs have all the value he said they would on Wednesday. However, he didn’t talk about getting rid of all the rot in government and the private sector. There are a lot of companies hanging on that aren’t viable. And the uproar of some about the tariffs are really about the uncertainty ahead.  What happens when your unprofitable company sinks and goes under?

It’s tough and we’ve all been there many times. Some Americans will lose their grossly overpriced homes, some even facing homelessness. The pandemic is still fresh in everyone’s mind. Trump would be wise to provide some relief packages for the coming period of higher unemployment and retraining for the new repatriation economy.

The Import Tariffs are Absolutely Needed

The tariffs will cause some immediate pain and anxiety as supply chains are disrupted. News media are adamantly forecasting higher prices, but taxes will fall, commodity prices are falling, inflation is falling, energy costs (gasoline) are falling, and American companies will be selling more to fill the void left by foreign imports.

So the downside of this in 2025 might not be as severe as expected. Certainly, those who make their living selling products into the United States will see losses. They’re on the wrong side of the equation. They’re now a cost, and their jobs will be eliminated.

What are the Immediate Costs of the Tariffs

Long term, there are no costs, its just improvement. For instance, home prices and rent prices will likely decline giving seniors and lower-income renters a break.  Taxes will fall, giving lower-income Americans more cash in their pockets.

Yet during 2025, we might see:

• Increased unemployment
• Some rises in product prices
• Reduced home building
• Factories underproducing

Retaliatory tariffs will come (China announced its 34% tariffs today), however nations will be uneasy about their long term future in facing more severe tariffs from Trump if they escalate. Trump needs to remind them to think about the future, and reshape their view that the USA is going to be central to all of it. The US is Xchina, and jobs are being brought back. Some nations are already reducing their import tariffs on the US, which is the right decision.

Making American Great Again

The US is just a shell of its former greatness, tortured by 40 years of free trade and trade agreements where it had the short end of the stick.  The $36.6 US national debt tells us Americans have been supporting the world financial for a long time. The end has come.

The transition period will be tough for some, but the USA must change or face bankruptcy and devastation. The country is mired in catastrophic debt levels, trade deficits and out-of-control government spending. The end would have come without Trump in office.  It had to be turned around and he’s the only one brave enough to try.

If the Dems and China had a plan to destroy America, it almost worked. Americans were that close to the demise of their country, so a tough 6 month economic period is a small price to pay for long-term viability and existence.

The 3 month and 6 month outlooks aren’t all that promising for the economy, however, right now in April, typically a bad month, is the right time to invest. I’m sure Warren Buffet with his trillion in cash, was waiting for this very moment. Billionaires love a good stock market crash.

We’ll get through this transition back to American dominance and trade partners will enjoy working with a reliable, honest trading partner who has been incredibly good to them.

See more on the Trump tariff analysis, it’s impact on Europe, and the promising 5 year outlook for the stock market.