Don't Get Fooled
Written By: R.J.Bobber | Posted: Wednesday, January 17th, 2018
There has been a tremendous amount of publicity lately about the growth of the Stock Market over the past year and how many jobs the corporate tax will create. There is no question there has been a large "Trump Bump" fueled by deregulation and the promise of the corporate tax cut and personal tax cut for the wealthiest Americans. "In truth in reporting, I own a fair amount of stock and have benefitted from the recent explosion of the stock market. My company is privately held and we do not have stock."
With the corporate tax cuts looming in the near future the boom in the markets is likely to continue at least until the 2018 mid-term election. What does all this mean for the average US household? Not a whole lot. First, let's start by saying that only 38% of U.S. households even own stock and the great majority of that 38% don't own much (only 25% have more than $2000 invested). Of what they do own, a very large percentage of it may be held up in long term retirement plans such as IRA's and 401 K's and not readily accessible. The bottom line is this boom in stock prices hasn't really put much money in the pocket of average American to spend on groceries or mortgage payments nor will it in months to come.
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