Right now, we are seeing a rapid rate of inflows from retail investors into the stock market.
Inflows into equities over the past 5 weeks have hit the highest level on record, with over 70 million being flooded into the markets in January.
We don’t think this is going to slow down at all in 2018… S&P 500 companies hold nearly a trillion dollars overseas, untaxed cash that will be coming back to the U.S. thanks to the new competitive corporate tax rate.Apple (AAPL) alone is expected to repatriate $245 billion!
Repatriated cash will be used for investment into the U.S. economy, share buybacks, and dividends, all of which will add further upside pressure to the markets.
Including all public and private companies based in the U.S., there is 2.5 trillion dollars stashed overseas. That’s a lot of capital that will come back to the American economy.
Allowing companies and individuals to keep more of their own money will create very sustainable jobs. When Apple creates 20,000 jobs, the income from those jobs comes from profits – from consumers choosing to buy Apple products.
This is a very orderly and natural force in an economy that will add additional optimism and positive sentiment from consumers and investors.
Keep in mind that we still have the FED and other central banks using emergency measures from the 2008 crisis. All of that is still in place, which will help fuel the mother of all bubbles, the everything bubble, which is probably unfolding now in real-time.
The European central bank is still buying $3 billion worth of bonds every single day!
It’s propping up zombie companies, fueling fraudulent schemes, and creating many distortions throughout the world.
We have a few good years left before a systemic crisis takes over, unless innovation and technology can save us and help lead us to a peaceful transition, which is what we hope happens and why we are so heavily invested in blockchain technology.
I’ve been a guest on several shows this past week, and I will send you a link this Sunday. I look forward to all of our subscribers’ feedback. Please take the time to listen this weekend, and let me know your thoughts and ask if you have any questions.
2018 is going to be our most profitable year as a wealth letter.
The set-up here for commodities, cannabis, and the blockchain is truly the best I’ve ever seen!