On the Trey Ware Show, Karl Eggerss was interviewed and discussed that the economy is generally good and the stock market is at new all-time highs, but some investors are still skeptical. Karl explains why that could lead to more long-term highs.
Trey Ware: Karl Eggerss from creatingricherlives.com joining me now here at KTSA. Karl, I got this new CNN poll. They really had to swallow hard over at CNN and they said this, “As 2019 comes to a close, the US economy earns its highest ratings in two decades. Overall, 76% of people rate the economic conditions in the US today as very or somewhat good, significantly more than those who said so at this time last year, it’s the highest share to say the economy is good since February 2001.” They really had to swallow hard over at CNN to say that.
Karl Eggerss: Well, you can’t … I was going to say, you can’t make up stuff, but nevermind, I won’t go there. Yeah. It’s interesting because everybody agrees the economy has been doing very well and improving. What’s interesting is that there’s still a lot of skepticism around the stock market and how can it be at these highs and everything when, again, we go back to what you and I’ve been talking about, which is when the economy has improved and the fed kind of stays out of the way, meaning they’re not raising interest rates, stock markets do very well. But you still have the skepticism, which for those who invested is a good thing because if you have skepticism, that means there’s money still on the sidelines yet to be put into the stock market. And as it makes new highs, people kind of capitulate and say, “You know what? Maybe I’ve been wrong about this. I should buy some stocks and mutual funds, et cetera.”
Trey Ware: Well it looks like a good day today. The Ministry of Finance in China announced today, “Tariff cuts effective January 1 on frozen pork, asthma and diabetes medications, integrated circuit boards, and about 850 other products intended to promote the coordinated development of trade and environment,” China said. That’s got to be good news and will resonate in the stock market today.
Karl Eggerss: Yeah, you get that de-escalation. I mean it started, everybody … when it kind of amps up, you saw this in the last few months, whenever we would say, us being the US, “Hey, we’re going to put more tariffs on China,” would come back and say, “Well, us too.” And obviously now what you’re seeing is the complete opposite of that.
By the way, Trey, something that didn’t get talked about over the weekend is the SECURE Act got passed, which is going to help retirees out a little bit in terms of, at 70 and a half, you have to start taking money out of your IRA. That is going to be pushed back to age 72 now. So that’s going to impact a lot of people driving around listening right now.
Trey Ware: Very cool.
Karl Eggerss: So might want to check out the SECURE Act.
Trey Ware: Very cool. Thank you, Karl. Appreciate it. Merry Christmas to you and yours at creatingricherlives.com, that’s creatingricherlives.com.