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Hollywood Minimum Wage Hypocrisy – Ep. 216

  • The Dow 20,000 party is going to have to wait until 2017
  • Although I wouldn’t necessarily buy a ticket for January
  • The selloff that started this week may resume in the first week of the new year
  • The dow rang out the old year with a 57-point loss to cap a losing week
  • Probably the first down week since the Trump victory
  • The Dow now at 19,762 – the close on the Dow for the year
  •  Most people think it’s just a matter of time; we can easily rally early on in the new year
  • But again, there should be a lot more selling pressure in the new year
  • I mentioned this on the last podcast
  • A lot of people who had gains didn’t want to take them in December because hopefully the taxes will be lower next year, so why pay higher taxes sooner, when you can pay lower taxes later?
  • We’ll see what happens in early January
  • If we ring in the new year like we rang out the old,  it could be a long time before we get to celebrate Dow 20,000
  • I’m sure eventually we will, even if we don’t do it right away
  • Everything goes up when you’re measuring in terms of U.S. dollars, so it is inevitable that the Dow will get to 20,000
  • The question is, what will Dow 20,000 be worth in purchasing power – that’s a whole different story
  • It’s easy to go up in nominal terms, it’s a whole different thing to go up in real terms
  • The Dow actually had a pretty good gain this year; it was up about 13-13 1/2 percent
  • Almost all those gains happening post-Trump
  • Although the problem for Donald Trump, is that he is claiming credit for this rally
  • What he should be doing is saying
  • “This is a bubble, I said it was a bubble when I was a candidate, it’s still a bubble, now it’s even bigger”
  • But he owns this bubble now; he has embraced it
  • Donald Trump has come out and said, “The market is going up because of me.”