December 3, 2020
Six months ago, NBC News blasted this headline to its millions of readers: “Fact Check: Coronavirus vaccine could come this year, Trump says. Experts say he needs a ‘miracle’ to be right.”
Yet the first coronavirus vaccine is expected to hit the market next week – December 2020.
Thanks to the freedom of the American capitalist engine, not one, not two, but at least three vaccines are in the works.
And these vaccines are what helped push the Dow Jones Industrial Average above 30,000 for the first time ever. As the benchmark index reached this epic milestone last week, the president called a press briefing. Usually, Trump’s briefings are rather lengthy. He often has plenty to say and will answer questions. But this one was different… The president was actually brief… as in, 60 seconds brief.
Standing at the podium, he faced a rabid group of reporters anxious to ask him when he intended to concede. He took no questions… and instead, simply heralded the historic significance of 30k on the Dow, saying, “I just want to congratulate everybody. The stock market, Dow Jones Industrial Average just hit 30,000, which is the highest in history.” He then added that the 30,000 level was “sacred,” and that “nobody thought they’d ever see it.”
And with that he left the room. Reporters were dumbfounded…
Once he was out of earshot, ambient microphones could be heard picking up the crosstalk between reporters… “Well, that was weird as sh*t,” you could hear one journalist saying with dismay off-camera. Another was caught saying, “Well, that was one of the stranger…”
Did they think Trump was about to concede? I knew he wouldn’t. Newsflash for the mainstream media… I don’t expect he’ll concede until every legal path is exhausted. (And even then, I’m not entirely certain he’ll concede. I mean, he’ll leave office… But this may be the start of something new. Another column for another day.)
But the snickering about the brevity of the briefing was just the beginning. Next came the media scoffing at the president’s description of the historic level for the Dow.
How dare he call it “sacred”?!
The media nitpicked at his word choice… It was an adjective that they found offensive. Yet in many ways, given the utter hell we’ve been through in the last year, 30k for the Dow is indeed “sacred.” It represents proof that America can prevail.
Back in the dark days of March, most investors (and “journalists”) thought the stock market didn’t stand a chance. We were “doomed,” they kept telling us… And indeed, on March 12, the Dow Jones suffered its largest point drop ever, ending the session off 2,352 points. This was the beginning of the end, they told us.
I saw through the media’s attempt to politicize the virus from the beginning. For big media, it was a perfect storm… A deadly virus, economic fallout, and the ability to blame the president that they so despised represented a huge political opportunity (not to mention a ratings opportunity, as well).
I started my career in finance at Goldman Sachs. I’ve spent two decades reporting on markets and the economy and won many awards for my investigative reporting. I have seen a lot in my career, including the 2000 tech bubble and the subprime crisis in 2008.
These experiences have taught me the importance of approaching all my market analysis in a rational way… to see through the massive sways in media sentiment (and political posturing) to get at the root of an issue. I know what the media does, how it tries to manipulate public behavior, and how dangerous it can actually be in terms of creating a kind of groupthink.
So I was prepared for the media’s hysteria to cause near-term economic fallout and market uncertainty. And I also knew that uncertainty would be short-lived. Thanks to the ingenuity and creativity of American companies, there was a light at the end of the tunnel… We’d get a vaccine and we’d make it through this. And if we didn’t get a vaccine? We’d STILL make it through this… because Americans are survivors.
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In March, I wrote that Leftist politicians and the mainstream media were politicizing the virus. Too many “journalists” welcomed bad news because this was damaging to the president. And let’s face it… We all know how desperately they wanted this president gone.
They seemed to want a panicked state in the markets.
But for those investors who kept their heads in the game and wits about them, who trusted American capitalism… for those investors who knew this president was prepared to rid the pharmaceutical companies of bureaucratic red tape so our American pharmaceutical companies could innovate? Well, those investors saw through the hysteria that was (and still is) the mainstream media. And seeing through the media’s bias is a crucial part of investing.
So like I predicted, the market has rallied back… and then some!
On March 12, the Dow Jones Industrial Average closed at 23,553. And just last week it hit 30,000.
These are important levels to remember and there are smart lessons to be learned… Even when things seem at their worst, ultimately, if you trust the people – we will prevail. (This is especially relevant now as we consider the multiple orders for lockdowns and masks and curfews… We are all quite capable of making smart decisions regarding our own safety.)
Meanwhile, just as individuals are capable of taking care of themselves, businesses are capable of succeeding in a real meritocracy, free from onerous regulations and burdensome bureaucracies that prevent entrepreneurship.
Thanks to our freedom, the American capitalist engine went to work and the result is multiple vaccines coming to market.
So when the president deems 30k a sacred milestone, it actually is a poignant way of saying America REALLY does beat the odds… And this is the proof.
My advice for investors and the corporate media elites… NEVER bet against America. She will always win.
Of course there are still challenges ahead… At some point, we will need growth to match the expectations built into today’s stock market valuations. We’re currently trading at twice our historical price-to-earnings ratio, and recent economic headlines suggest tougher times ahead. And we can’t forget our debt level, which is becoming increasingly unsustainable.
But today, as we head into the Christmas season, I’m going to enjoy it. Because I’m quite certain… the American people will always get it right.
Episode 12: The Price of Freedom
Guests: Dinesh D’Souza, Maria Corina Machado
- The Left is now calling support for a recount a conspiracy.
- Dinesh D’Souza explains why Hollywood would never release his latest film, and the agenda of the mainstream media.
- Venezuela’s 2004 election was influenced by fraudulent polling. Did the same thing happen for the 2020 U.S. election?
- How to avoid a Hugo Chavez situation in American government.
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Executive Editor, American Consequences
With Editorial Staff
December 3, 2020