Thanksgiving Day Thoughts
Tomorrow is Thanksgiving Day and in my years on this earth I don’t think I have ever seen such a gap between the haves and have nots and the public policy that is unwilling to address that gap. A substantial number of Americans are not going to have a festive holiday. Covid and unemployment are real.
The coming end to the Trump administration and the switch to a Biden Presidency will hopefully provide a quantum change in policy, a change that most market players don’t perceive. Main Street will replace Wall Street. We all know that stock indexes don’t really provide a picture of the state of our country. Price / earnings multiples are in the stratosphere and the markets are still clinging to the old normal, and why would they not, that is what the bully pulpit is proclaiming. There has been no effort to redeploy workers to new areas that the New Normal will require.
Hopefully that redeployment will happen. It will be a shock to Wall Street as they will find dwindling support for their dreams, reality will set in for Main Street. This will not be an easy switch, too much is leveraged in the happy talk conversation, inventories and orders are bulging as the much hoped for return to the old normal are in place.
To be fair, Trump is not totally to blame, and Biden will not be the total cure, too many old ideas, lack of outside the boxers, old school elitist’s appear to be populating the new administration. But that probably had to happen to bridge the gap from the magnitude of the destruction of Main Street since the Supply Sider, Trickle Downers, got control in the early 1980’s. Trump was just the cherry on the top of that Wall Street ice cream sundae.
Enjoy your pumpkin pie tomorrow.