Tuesday morning 8AM Eastern time, I will do a spot on Fox Business Network’s Money for Breakfast with Host Alexis Glick and my friend Bob Stein from First Trust Advisors. Our topics will be President-elect Obama’s new, new plan and his recent appointments to key economic positions.
I am especially interested in recent Obama comments about delaying the big increases in capital gains, dividend and marginal income tax rates that he advertised during the campaign. If he delayed them forever it would be great news for GDP, jobs and the stock market.
All last week in China people asked me what policies we can expect from Obama. I told them it depends on which Obama shows up in the oval office on January 20.
The first Obama we got to know–before he was a candidate–was a healer who talked about bringing Americans together again and getting America to work with other countries to make the world better. The second one–the one we saw during the campaign–spoke to cheering crowds about targeting specific groups (the rich, banks, insurance, big oil, drug companies, Big Business, nonunion workers, outsourcers, or “cheap foreign labor”) for retribution.
If the first Obama shows up he could do do enormous good in the US and the world–the world could use some healing. Obama A would keep marginal tax rates low, pursue trade with other nations and promote growth. If Obama B shows up–the one with the big tax increases and protectionist acts–he could do a lot of damage. So far its looking OK. Until we know for sure I have my fingers crossed but am holding a lot of cash.