“Deficit Not a Concern if Market Does Not React”

“Deficit Not a Concern if Market Does Not React”

$DIA $SPY $QQQ $RUTX $VXX

“The growing national deficit is a ‘legitimate issue’, but our main focus now is in creating jobs,” White House trade adviser Peter Navarro said Friday. 

Until the bond market starts reacting negatively to that and we start seeing inflation, the deficit is not going to be a concern,” Mr, Navarro said. “What we are going to focus on is growing wages for workers. We are not afraid of that cause and inflation like some on Wall Street. We are going to increase productivity through investment. That is the plan and it is working beautifully.”

The deficit was $984-B in Y 2019 and the estimate is at $1.2-T this year.

The question is, is it a bad thing? Will it get better?” said Mr. Navarro. “What our focus is growing the economy as fast as possible. The difference between the 2% and 3% growth rate, 3%, 3.5% is all the difference in the world. What we have been trying to do is consistently outperform CBO predictions.

The Trump Administration is “outperforming projections,” said Mr. Navarro. “I think if you look at everything we’re doing, we have got household income up. The real GDP is actually performing better than expectations. Manufacturing jobs, we have created over half a million although they have been down recently.

Friday, the major US stock market indexes finished at: DJIA -227.57 at 28992.32, NAS Comp -174.37 at 9576.63, S&P 500 -35.48 at 3337.75

Volume on the NYSE came in at 1.1-B/shares exchanged on options expiry.

  • NAS Comp +6.7% YTD
  • S&P 500 +3.3% YTD
  • DJIA +1.6% YTD
  • Russell 2000 +0.6% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish at the week ending 21 February 2020.

Looking ahead: Investors will not receive any notable economic data Monday.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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