I have a mantra for you today. Just repeat this over and over, as we go through this discussion. “Today is history, tomorrow is now.”
Just repeat that, and this all will make so much more sense: Today is history, tomorrow is now…
The government reported today, that those $1,400 dollar stimulus checks will be going out next week, Up to 100 million per week. So that by the first week in April at the latest most Americans will have received their checks. And for most of us, we won't even have time to spend those funds, when we're liable to see a very strange reaction on the Street.
Remember: Today is history, tomorrow is now.
So for us, everything looks rosy. A little extra cash in our pockets, perhaps not as much as we'd hoped for. But nonetheless, nothing to sneeze at.
And, if my suspicion is correct, our mood and Wall Streets could not possibly be further apart.
And that's all because the Biden Administration is currently floating the idea of significant tax increases. If you read any of the business newspapers yesterday they were full of these stories.
And by most accounts, the indication is that this will be the greatest tax bump in nearly 30 years. This has the potential to be huge.
And remember for Wall Street, in particular, Today is history, tomorrow is now.
So while we see the stimulus, extra money to spend. The Street sees just exactly the opposite: tax increases. Tighten your belt, Uncle Sam is about to reach into your wallet.
It is the fastest transition from stimulus to constraint, ever.
I don't think I need to point out, that this isn't good politics. This is a rookie move, that takes away the benefit before it begins.
The timing couldn't be worse.
So I wouldn't be surprised to see Wall Street in a terrible mood as we work through all this. It's just the kind of thing that can turn your average trader or money manager into a real BEAR., if you get what I mean.
So as we go through these next few days and weeks, just remember although you may see things through the bountiful largesse of these stimulus checks. Wall Street sees things entirely differently.
For them: today is history, tomorrow is now.