Stock Market Vibrations

There are dozens of excuses being made for the current stock market downturn, but the one not being mentioned is that these companies have put themselves in imminent danger to be replaced by better companies. This would explain to rush to cash we are seeing now and the war chests being put together for investments that require cash.

There is need for US companies to return to producing the goods US consumers buy including electronics and appliances. There is an opportunity for US investors to recapture these markets with new companies that could develop and keep advanced intellectual property.

Our US companies expanded their operations to all other countries, especially after 1993. They want to be able to count on the revenue they make from foreign operations. The return of manufacturing to the US for goods sold in the US markets under the Trump Agenda needs to be dealt with by these companies and they don’t like it.

At the top end, the market is following the rule to buy low and sell high. There appears to be the need to turn recent gains into cash.  There is a build-up of capital for investment and most pension plans need cash to keep their underfunded balances from total insolvency.

No doubt, the Fed funds unnecessary rate increase to 2.5% was the clarion call for stocks to plunge, but we have identified other cracks in the US Corporations with low growth about 3%. Cost reduction is needed in healthcare, education and government and these bloated industries should face reduced revenue.

We are seeing huge US corporations die.  GE and Sears were once among our largest companies. Apple found little consumer interest in their new expensive I-Phone and Facebook is ripe for a downturn. US consumers want their monthly bills reduced for electricity, natural gas, water, cable, internet, phone charges, mortgages, car payments, rent payments, health insurance and education costs.. Without manufacturing jobs, US consumers are tapped out.

US consumers know that US companies off-shored manufacturing and the US lost jobs.  US voters have watched US companies and the US government promote globalization, excessive immigration and more US job loss and we are not happy with the companies who supported this.

The Trump Agenda calls for a return of the Middle Class that includes manufacturing, mining and oil and gas extraction and it is working, no thanks to our US corporations. Trump also wants to limit and control immigration and restore US immigration policy to be determined by merit and need and too many of our corporations are not supportive. Trump wants China to end its theft of intellectual property, but the companies who gave the Chinese this intellectual property are not interested. We need new technology companies to surpass the current products and take over.

If these US corporations are not interested in the US consumers and voters, we have no incentive to support them.  This leaves a power vacuum for US investment to begin companies that will replace the companies we currently have and are not fond of. That would include all companies we pay our monthly bills to who hope we don’t notice their incompetence.

Norb Leahy, Dunwoody GA Tea Party Leader