Varney: Markets don’t buy fantasyland Democratic economics
'One certain way to produce a crash would be a socialist win'
Fantasyland economics will be on display at the upcoming Democratic debate, but President Trump’s market growth seems likely to continue, FOX Business’ Stuart Varney argued in his latest “My Take.”
“Take a look at this market. On this, the day after the impeachment vote, [it’s] going up and still setting records,” Varney said.
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Big-name investment firms think the market rally is going to keep running into next year—an election year, according to Varney. The markets think Trump is going to win and want Trump to win, he added.
Democrats pour scorn on the president and the media detests him, but looking at his policies, investors are moving firmly into his camp, Varney said.
“At the Democratic debate tonight, the exact opposite. Fantasyland economics will be on full display. Seven candidates on the stage, all of them want tax increases, massive new restrictions on business and some degree of ruinous Green New Deal policies,” he said.
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Tax, spend and regulate policies don’t grow the economy, they kill it, a fact which is understood by anyone who knows about prosperity and growth, according to Varney.
Wall Street’s big-name investment firms may not like the president’s tone or style, but “they know on which side their bread is buttered” and that despite the partisan impeachment vote, Trump will remain president, Varney said.
He added that Democratic corporate executives, too, know that capitalism creates wealth, not socialism and that their party has shifted way too far to the left.
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“Let’s be clear, at some point there will be a nasty, gut-wrenching selloff. After a run-up like this, there always is. There could be an unforeseen disaster, what some call a ‘black swan’ event. Or the Federal Reserve could make a bad call. One certain way to produce a crash would be a socialist win,” Varney said.
None of that looks likely and the market thinks Trump will win, which is why their predicting market gains in an election year, he concluded.