Question of the Week
Are you willing to pay higher taxes for more social safety net programs?
Are you willing to pay higher taxes for more social safety net programs?
Afternoon Note
Architect
By Charles Payne, CEO & Principal Analyst
4/28/2021 1:10 PM
In just a few moments, we will hear from Fed Chair Jerome Powell. He has to navigate a number of hurdles, as he recognizes how well the economy is doing, and yet, justify why historic levels of accommodation must remain in place.
I actually wonder what kind of nickname Powell should have, considering the conundrum of his own design?
Greenspan was considered the “Maestro”
Volker was buddy to his family but was “The Hammer” to the market
There was “Helicopter Money” Bernanke
A Wall Street economist called Yellen “The Reluctant Hiker”
I think the “Architect.” I’ll ask some brilliant folks on my show this afternoon. For now, the Fed will not hike, but will Powell telegraph a reversal in policy? It’s a tough one indeed.
Earnings Parade Continues
Meanwhile, the number one and five market cap companies in the market are reporting after the close. Apple(AAPL) and Facebook (FB) will post the latest results, as both grapple with individual issues. These stocks have been juggernauts for a long time, but in the last three months, Apple has underperformed.
|
Relative Stock Performance |
12 months |
3 months |
|
AAPL |
+92% |
-4% |
|
FB |
+68% |
+12% |
|
NDX |
+61% |
+5% |
Earnings and Stock Moves
Its clear, buying and holding these stocks have been the way to go. But investors have been shaken out from time to time, so it’s important to know recent reaction trends (past year). For the most part, these stocks trade higher one week after earnings than the initial reaction.
|
AAPL Earnings Reaction |
One Week |
One Day |
|
Jan 2021 |
-4.3% |
-2.1% |
|
Oct 2020 |
+4.1% |
-5.0% |
|
Jul 2020 |
+17.2% |
+9.4% |
|
Apr 2020 |
+4.2% |
-1.0% |
|
FB Earnings Reaction |
One Week |
One Day |
|
Jan 2021 |
-1.6% |
-2.2% |
|
Oct 2020 |
+4.3% |
-6.9% |
|
Jul 2020 |
+13.3% |
+8.3% |
|
Apr 2020 |
+6.3% |
+4.2% |
Holding Pattern
The S&P 500 has been in a holding pattern for about a month ahead of today’s news. As you all know, I consider the two hours after the FOMC decision to be pure emotions and think the next day is a better reflection on how investors feel about the news.
| Comments |
| NO, They will steal it like they did SS. Jim Womack on 4/28/2021 1:27:50 PM |
| Not no, but hell no. As a country we are truly insane with what we are doing and it will go nowhere but to Socialism or worse. I'm all for helping people, but this is not help. Robert Clanton on 4/28/2021 1:37:55 PM |
| More Taxes??!!! Hell No!! Taxes, at this point, have become nothing more than a form of wealth distribution. Taking from the hard working American Tax payer and giving to the lazy, illegal, and corrupt dregs of society. Chester on 4/28/2021 1:38:05 PM |
| No. Jack Wilson on 4/28/2021 1:56:43 PM |
| NO. These policies are a joke. This is a structured and systematic strategy to destroy the American middle class; thus, America itself. Brian Wilkin on 4/28/2021 2:00:12 PM |
| No Robert D Pennington on 4/28/2021 2:30:28 PM |
| "No New Taxes" Period. Gregory Timm on 4/28/2021 2:31:17 PM |
| NO Ted on 4/28/2021 2:48:39 PM |
| No new Taxes! Peter Lazidis on 4/28/2021 2:57:28 PM |
| Simple answer is no. The social safety net programs we have have been given out like candy for everyone, citizens and illegal aliens as well. I just cannot see to pay more for social programs when the ones we have are so badly run and wasting money they do not have to account for. Mark Mizner on 4/28/2021 3:18:08 PM |
| Not willing to pay higher taxes. gary shavers on 4/28/2021 3:33:28 PM |
| No !! The safety net social programs don't seem to go where they are needed the most, there are no filters to weed out the fraudulent claims and not everyone needs a bail out! Looks like the greatest give away of taxpayers money to buy votes for one party anyone has ever seen!!!! I am 79 years old and have always worked hard, am still working to try and provide a better life for our family and 2 generations of offspring and the current government wants to tax everything I have and am making to pay for illegals coming into this country!! Let's just give it away so there is no incentive to work, does not have anything to do with Race, Color , or Religion. Most of us are immigrants and most of us are legal, fix the immigration policies but close the border so that we decide who come here not the Mexican Cartels. larry Turner on 4/28/2021 3:35:26 PM |
| Already taxed enough. It doesn’t matter what social safety nets they’re planning on adding. Whenever the government gets involved in these things the only things that will happen are all bad for the average person Lloyd Barney on 4/28/2021 7:13:06 PM |
| No, because the ones we've seen don't help people to improve their lives. They become dependent on the giver, the government and the government expects them to return the favor which usually is not good. Expectations are good, but government control is not. The GI bill was a program that worked and is still effective. Right now, because of the stimulus, employers are having trouble getting workers to come back to work because they are happy to collect the dough and sit on thier kister. Lorin K on 4/28/2021 8:17:23 PM |
| No, they tend to spend to much money for the cause they are suppose to benefit. Tom Lynn on 4/28/2021 9:01:14 PM |
| No, I don't feel we're getting our money's worth now. I'm tired of paying world class taxes and getting 3rd world results, especially when they can give illegal aliens thousands of dollars or our tax payer money. The people in charge now haven't earned our trust. GAR Smith on 4/28/2021 10:27:22 PM |
| NO!!!! Kenna Marcel Jones on 4/28/2021 10:34:24 PM |
| NO ... No ... and no. Serafin Alorro on 4/30/2021 12:58:04 PM |
| Short Answer: NO. Increased Taxes burden working Families, especially married couples where both are working. Increased taxes also unduly burden small businesses, businesses that historically provide job opportunities for skilled and unskilled workers that can learn new skills on the job. Increased Safety Nets are playing grounds for political manipulation. While the cries for more government handout programs may seem to be for those in need, they actually open new opportunity for fraud and misuse. People should be free to work, save and invest in a low tax environment, not punished by higher taxes in the "guise" of helping others. Becke Freitas on 4/30/2021 2:08:05 PM |
| I do not support an abundance of support programs. Social security for elderly, medicare and medicaid for elderly are the only two Federal government programs I support. All others including welfare, unemployment and disability should be handled by each individual state and or city. Frank Stanford on 5/2/2021 10:36:48 PM |
| NO Norm Beauchamp on 5/3/2021 8:00:14 PM |
| "Net" is the correct word, because once the government gets people to start accepting their obviously socialist programs, everyone becomes ensnared in their trap. Our government, in the majority, is filled with useless and/or dishonest people. The fact that they are in charge of anything at all should make us all sleep poorly. When Biden said "We the People is the government," he showed that he doesn't understand a damn thing, and doesn't really care what average people think at all. Louis Doublet on 5/4/2021 9:32:47 AM |
| No! Growing the market is not helpful to grow the recovery. Patrick J Pedley on 5/4/2021 10:18:11 AM |
| Regarding the willingness to pay more taxes for more government handout programs, not willing. "Givers have to set limits because takers rarely do." - Henry Ford (found this @thequote) Elizabeth Brown on 5/7/2021 2:05:05 PM |
| Fewer services, lower taxes Donald Havre on 5/14/2021 4:29:27 PM |
| No thank you. I started out making $0.25 mowing lawns at age 8, increased by income to $0.65/hr working in the library in college, and retired making over $125.00/hr as Enrolled Agent. That averages out to 10.9% increase per year over 60 years. I know you appreciate taking advantage of what the American economy offers if you believe in yourself and apply your natural talents. RL Ron LaCour on 5/15/2021 11:32:12 AM |
| There are enough social safety nets out there as it is. If we had to have higher taxes for more safety nets that would mean another titled program. This would mean more people to administer it then more to deliver it and more oversee it. Half of the tax money would be eaten up by MORE GOVERNMENT EMPLOYEES! John Davis on 5/17/2021 12:11:34 PM |
| Read my lips, no new taxes. The government should work with all the beauracracies and tax levees they already have created. Henabel on 5/18/2021 4:24:44 PM |
| NO. I believe in lending a hand when folks are down but these so called “social programs” are not only bankrupting us, all they are doing is making people more dependent on government. Frank L. Alvarez on 5/18/2021 6:18:36 PM |
| No. Higher taxes will never be enough and the middle class always end up picking up the tab and the US will still have a bigger debt. Sharon Lockwood on 5/19/2021 11:00:05 AM |
| NO!!! Prince on 5/19/2021 6:24:18 PM |
| No Kemp Cook on 5/21/2021 10:25:33 AM |
| MORE SOCIAL PROGRAMS DUMB DOWN...People need totake initiative and get their lives together short time help is understandable but help like that should come from the local area not big government. The major impact of these programs is to grow government. Short time help in all but the most drastic situations. STEVE RUSHTON on 5/21/2021 11:48:06 AM |
| NO. We already have multiple "safety net" programs. Ruth Steyn on 5/26/2021 9:44:08 PM |
| No John Biliski on 5/28/2021 8:30:33 AM |
| No. Keep taxes down and remove all COVID-19 restrictions, stop paying extra unemployment benefits so people will return to work. Follow President Trump’s lead and the economy will boom! Raymond Brown on 5/28/2021 5:37:10 PM |
| "Read my lips... no new taxes"... I think that existing safety net programs are probably enough if properly administered. Let's encourage work, not the entitlement mentality. I like the scripture that says" It is the hard-working farmer who ought to have the first share of the crops". Steve Grubor on 6/1/2021 4:50:48 PM |
| No, Taxes are not supposed to be used in this way. Social programs are for NGO’s where willing people attribute the funds. Taxes should only be used to provide services that apply to every citizen equally. Terry Lavis on 6/2/2021 7:58:03 PM |
| I believe that we are already grossly overtaxed in this country; so, no, I wouldn't accept higher taxes for more social safety net programs. I'm a firm believer in the adage that the best safety net program is a good paying job. Kevin Kelly on 6/4/2021 10:13:31 AM |
| No, No, No!! Christine Parsons on 6/7/2021 8:04:43 AM |
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