Larry Kudlow: Biden and his cohorts believe that the stock market is full of rich people

I want to open tonight with multiple themes. First, there’s a nice rally in the stock market where the Dow is up 1,350 some single points over the past two days, sort of out of the blue after a dismal third quarter.

Year-to-date, we remain in bear market territory with the S&P 500 down 21%. Now, let me reflect on this. First, I always like it when the US stock portfolio goes up.

The latest Gallup poll shows that 58% of them invest in stocks in one way or another, through 401(k), pension funds, and more. It can reach nearly 150 million people. That’s a big number.

Joe Biden Do not pay any attention to the stock market. He and his companions think that everything is rigged by a group of wealthy people, but they are wrong. They don’t believe in free markets, let alone stock markets.

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President Joe Biden leaves Air Force One

President Joe Biden holds a face mask and waves as he exits Air Force One at Capital International Airport, Tuesday, Oct. 5, 2021, in Lansing, Michigan (AP Photo/Evan Vucci) (AP Photo/Evan Vucci/AP Newsroom)

Central American workers are in the market and have had a rough time, but I’m glad there were some happy moments, at least for a few days.

However, it doesn’t have to be fun, it’s sluggish hygienic Economie With more Fed tightening ahead of us and lower corporate earnings writedowns (remember, earnings are the mother’s milk for stocks) makes me believe that this comfortable rally based on selling coverage won’t alter the overall downtrend.

Some people say the weak JOLTS report, with 1.1 million fewer jobs, after yesterday’s weak ISM manufacturing report, points to Fed tightening and lower interest rates. In other words, bad news is good news. I never liked this logic.

Personally, I always think that good news is good news. The good news is strong growth, stable prices, a healthy royal dollar, and more people working and thriving. The good news is never Recession.

So, I don’t like perverted logic, I’m just saying, but you can safely bet on America and its capitalist prosperity.

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This little progressive socialist comma will be cleaned up very soon. That’s why I always agree with Professors Burton Malkiel of Princeton University and Jeremy Siegel of Penn – that long-term stocks are always the best investment strategy. Kevin Hassett and Nancy Tangler will come on the show later to tell us more about the stock market story.

Second thought tonight, and I can’t help myself with this: The Biden administration is now using Ronald Reagan’s “evil empire” line to justify continuing nuclear deal negotiations with the outlaw state of Iran. That sound you hear is my blood boiling. This Biden’s argument is pathetic.

First of all, Reagan’s basic position on the Soviet Union was very simple: We win, they lose. I haven’t heard Biden say that about Iran. In addition, Biden never had the courage to call Iran an “evil empire.” He hates MAGA more than he hates Iran.

Another point: Reagan in his first term would not even meet with Soviet leaders. Not only would he not negotiate with the Communists, he would not even talk to them. a period.

Instead, he spent his first term strengthening America’s defenses, investing trillions of dollars in our national security, including the anti-ballistic missile system sometimes called “Star Wars” that is now the center of America’s defenses against nuclear weapons.

The other part of Reagan’s first term was tax cuts and deregulation to renew American economic growth, which provided resources to support our national defense.

When Reagan met Gorbachev in his second term, he told the Soviet leader that Star Wars was not negotiable, and noted that the American economy was producing goods to support our defense and that the collapsing Soviet economy could not support anything. . So, in two years, we won and lost.

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Joe Biden speaking at the G20 Summit

President Joe Biden on Saturday urged major energy producers from the Group of 20 countries with spare capacity to increase production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC and its partners to increase oil supply. (AP Photo/Evan Vucci/AP Newsroom)

Biden turned boom into collapse. His State Department keeps pleading with the Iranians for a deal — a deal, by the way, that cannot be verified and will involve hundreds of billions of dollars in aid to a group of people internationally known for lying, cheating, theft and terrorism. And they kill anything and anyone who supports America.

In fact, not to put anything good on that, Biden almost says, “We lose, they win.” I just need to get that off my chest.

This article is excerpted from Larry Kudlow’s opening comment on the October 4, 2022, Kudlow edition.

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