The Fundamental Cause of Today's Prosperity:  Reaganomics

Today's prosperity across the globe was triggered by the Age of Information and major technological innovations.  Technology was allowed to flourish and to trigger economic prosperity, because in the early 1980s, President Reagan promoted individual initiative.  He implemented this by cutting taxes, decreasing government intrusions into private business and people's daily lives and  --  not to be overlooked  --  providing leadership.  He often spoke of the need to permit individuals to innovate and create, and determine their futures.   He knew that the way to accomplish these goals was to provide substantive and respected leadership.

Regarding Leadership:

Without positive leadership true progress is always stifled.

Regarding The Facts:

The common indicator of today's prosperity is the Bull Market.  We hear about it from every shoe-shine boy, it is talked about on the nightly news, and individual stock market participation is at a record high.  (Note:  Stock and related asset valuations are also at very high  --  excessive  --  valuations.)

Reagan became president in January, 1981.  Following an initial knee-jerk, positive reaction to his election, the stock market went nowhere for several months.

In August, 1982 the stock market exploded upward as measured by volume, price movements and the number of individuals participating.  The brief pause after President Reagan's election is typical of markets.  The stock market is a leading Indicator.  The upward explosion after his election was caused by those few who accurately saw the future.  The  months of little reaction provided time for the next group of people to live the future and start to perceive it.  After August, 1982, the rest of us saw that something positive was occurring and started to "jump in".  We have  --  in our lemming mentality  --  not stopped to this day.

In the macro picture, the upward movement has not stopped.  The so-called crash of October, 1987, was no more than a pause and re-grouping of forces.

This is easily verifiable.  We all see that every dip in the markets is taken as a buying opportunity, regardless of fundamental facts and technical analysis.

Regarding Economic Models:

Without any more talk, review, theorizing, contemplating and cups of coffee let us acknowledge one fact:

A note about the two types of Givers:

       Type 1, the Volunteer Givers get tired of giving so much over so long.

       Type 2, the Forced Givers -- otherwise known as taxpayers -- get disgusted
                   by the takers' taking from them while they continue to work.

Regarding Hope For Our Future:

Today we have a society preoccupied with multiple civil wars:  Gender War, Race War, It's-My-Right War, Class War, etc.  The question is:

        Can a society whose components are preoccupied with in-fighting still have time
        to innovate, create, and make progress?

Some innovation and creation can be done by individuals working in their proverbial "garages".  But implementation of creative outputs and innovation beyond the initial steps is accomplished through team work.  Moreover, real progress -- Societal Progress  --  is made only when the majority of the members of a society join together with common positive objectives.  Regardless of individual skill levels, each individual must understand that working as part of a Big Team will result in a better life for him.

Can enough individuals today stop in-fighting, agree that we are all very well off, and join the Team?  Perhaps the bigger question is:  Can this occur in today's leadership vacuum?

Regarding What To Do In Today's Markets:

Ask yourself this:  When will the masses finally perceive that valuations are too high?  Until that self-fulfilling day, we are in a Bull market and it is safe to buy on dips.  Just be careful about what you buy.  You must go with the crowd of lemmings.  If you deviate, you may get caught in the small group of people who recognize value. Since there are not many of them  --  or us  --  these assets may languish until the next phase in the macro cycle.

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