Tag Archives: presidential election

Dawn J Bennett Weighs in on the 2016 Presidential Election and the Impact on Financial Markets

Dawn J Bennett, host of the national radio program Financial Myth Busting, and CEO and Founder of Bennett Group Financial Services, shared her thoughts on the 2016 Presidential Election and the impact on financial markets in an October article titled, “Of Purse Strings and Presidents.”

As the presidential election approached, Bennett asked people who they were going to vote for on November 8. Many responded with a simple “no one,” despite America very much needing the active participation of the people in governing the nation.

Understanding the dissatisfaction of the candidates Americans were left to choose between, Bennett wrote, “…it’s as if we Americans are being held hostage to a poorly written TV show, watching the race for the highest office in our land become a race to the bottom.”

Bennett stressed that Election Day couldn’t come soon enough to end the international embarrassment that the election was. Merrill Lynch had said, “Despite the descent of politics, the subjects having little bearing on financial markets, its stench nonetheless permeates everything.” Bennett agrees.

Money is the driving force in the future of American politics, and for far too long have fundamentals been disregarded. Bennett wrote, “Fundamentals have too long been ignored: a poor and unstable economy; a lack of consumer liquidity; employment and income savaged by many elements, particularly poor-quality trade agreements, shifting wealth off shore. The financial system is no longer a free market system in anything but name, operating outside of reasonable norms and controls.”

Despite the election results, the U.S. financial markets and the U.S. dollar are likely to experience near-term turmoil.  While many would assume it would trigger a flock to gold, Bennett believes the Federal Reserve is concealing the price so it appears that our economy, markets, and political system are stronger than they really are. This is something the Federal Reserve did back in September 2011, in which gold hit a peak and then dropped 400 to 500 points. This year, gold is up by roughly 17% year-to-date and silver is up 25%. 

Bennett states that this is the key reason why so few investors actually expect a decline in U.S. stock markets. Investors are under the assumption that the Fed has their back. But in the last eight years, the Fed has controlled the stock and bond markets, and the practice of buying the dip has been successful, and will likely continue to succeed unless members of the Fed’s Board of Governors change. This is only likely to happen if Donald Trump is elected.

The breadth equity market has fallen in recent weeks, which doesn’t usually end well for stocks. Typically, the indexes follow breadth. These divergences have been rare since 1990, and have generally been bad for investors. As Bennett explained, “In the seven instances that occurred before this year, all but two actually portended further losses. December 1990, February 2000, and October 2008 are notable examples. After 2008, equities ended up erasing half their value over the next two years. It should be clear that our markets have no connection with reality. Earnings and revenues have dropped substantially widely across the S&P and Dow constituent stocks, and even the Russell 2000.”

The Dow fell 508 points on Black Monday in 1987, which is a 22.61% drop. The 1929 stock market crash resulted in a 24.55% drop. Some analysts believe we could be facing a similar situation due to the collapsing breadth of the market and our increasingly weak and unstable fundamentals. In today’s market, that could be as much as 400 points.

While the 2016 Presidential Election has passed, when voting in future elections Bennett stresses that you  take into account your income, your investments, and your future. Protect them and be ready when things go downhill.

 

Dawn J. Bennett and Curtis Ellis Discuss ‘ObamaTrade’

Dawn J. Bennett, founder and CEO of Bennett Group Financial Services, recently interviewed Curtis Ellis, the executive director of the American Jobs Alliance, on Financial Myth Busting with Dawn J. Bennett. The American Jobs Alliance is an activist group leading the opposition against Obama’s proposed Trans-Pacific Partnership (TTP), also known as “ObamaTrade.” Ellis is also a former writer and producer for Lou Dobbs Tonight, CNN, NBC News, Fox News, as well as a former reporter for Associated Press radio.

Ellis recently wrote a report titled “Obama Strikes Again,” in which he states Obama said he would push the TTP in a lame duck session of Congress and Donald Trump is unfit for the presidency. In his interview with Dawn J. Bennett, he discusses these statements further.

Ellis said Obama is unfit for the presidency for the simple reason that he said he would push the TPP in a lame duck session of Congress.

“Now as someone who said he is a professor of constitutional law, Mr. Obama should know that the Constitution was amended in 1933 with the 20th amendment, the so called Lame Duck Amendment, because it was the sense of Congress, and the various states that approved the amendment, that nothing but routine legislation should be considered in a lame duck session,” Ellis said.

He continued, “Something as important as this sweeping 12 nation international regulatory pact that will affect everything, every bit of commerce that is carried on within this country, which will affect our laws including immigration, energy and everything else, is not routine legislation, and that should not be considered in a lame duck session of Congress.”

Major trade agreements are a hot button issue in Trump and Clinton’s campaigns. Recent polls suggest many Americans are not in favor of free trade agreements, and both Trump and Clinton have expressed that Obama’s proposed trade policy is not the way to go. Trump has clearly stated that he is against the TPP and would repeal it if he was elected president. Clinton, who actually helped negotiate the TTP, says she’s not in favor of it but has not provided information on what her alternative trade program would look like.

“She [Hilary Clinton] helped negotiate this Trans-Pacific Partnership. She helped negotiate it. She called it the gold standard of agreements,” said Ellis. “But then when she came under pressure from Bernie Sanders in the primaries, and from Mr. Trump, and looked at all the polls and saw how widely unpopular it is, she reversed course. In a very carefully parsed statement she said ‘I am opposed to it in its current form’.”

Ellis also noted that this was the same articulation used by Bill Clinton when he was in office. During his campaign for the presidency he said he was opposed to the North American Free Trade Agreement (NAFTA).

Ellis explained, “But once he won the election he said well, we’re going to change it a little. He got some side letter agreements, which were really non-binding and toothless, and said okay, now it’s fixed, and now I can support it”

He continued, “Add to that the fact that her [Hilary Clinton] closest confidant, Terry McAuliffe, who is now the governor of Virginia, when he was asked about the Trans-Pacific Partnership and Hillary Clinton shifting positions on it, he said, and this was during the Democratic National Convention, he said, don’t worry, once the election is over she’ll come around, and she’ll support it. We’ve got to build the global economy.”

Ellis said if Clinton were to win the election, we can expect the TTP to be run through Congress.

“Hillary Clinton will stand on the sidelines, publicly take no stand, but behind the scenes will be, probably, whipping for it,” he said.

Dawn J. Bennett & Niger Innis Discuss the Likelihood of President Trump

Financial advisor Dawn J. Bennett recently interviewed Niger Innis on her show Financial Myth Busting with Dawn J. Bennett. Innis is the national spokesperson for the Congress of Racial Equality (CORE), as well as an MSNBC commentator and political consultant. In the interview, Bennett and Innis discuss a common question many Americans have: Is it inevitable that Donald Trump will be the next president?

Innis says he thinks Trump being the next president is a real possibility. Innis, who is also the Chairman of Tea Party Forward, said, “We’re [Tea Party Forward] not quite sure just yet about Donald Trump, we’re all supporting him now, now that Ted Cruz has dropped out, and we certainly prefer Donald Trump over Hillary Clinton, but we’re certainly not sure if Donald Trump is going to be a Constitutional Conservative or could he very well be a big government Conservative.”

He continued, “So that even if he makes the choices that we would like, how he executes those choices, through executive orders or through running roughshod over Congress and not recognizing the separation of powers, is something that would concern us, that wouldn’t concern us as much with a Constitutional Conservative like Ted Cruz. On the flipside though, what thrills the Tea Party about Donald Trump is his ability to confound the media, his ability to not only circumvent the media, the establishment media, but to actually shape and confront the media and get them to talk, to say his talking points as opposed to him playing from their song sheet.”

Despite his chokehold on the media, Trump has been more unpopular with minorities than past Republican candidates. In order to win the minority vote, Trump would need to undo the damage that’s been done. Innis thinks he’s already begun and could appeal to the Black community.

According to Innis, “I actually think where Trump has the ability to again confound conventional wisdom is actually in the black community. I think his talk of building a wall, the economic American nationalism that he promotes, it’s something that would appeal greatly to a number of black Americans. Particularly, we hear in this election and we see it and we often say that it’s a reflection of angry white males—Trump’s popularity. But the little hidden story is that is not talked about as much is that there are a lot of black males and Latino males that are angry too, that are unemployed or underemployed and want an opportunity to earn a living and be breadwinners for their family.”

Innis also notes that Trump has reached out to Reverend Samuel Rodriguez, Head of the National Hispanic Christian Leadership Conference and a good friend of his. The organization represents around 30 million Latino Evangelicals nationwide. Trump addressed them recently, said Innis, and “gave a very conciliatory message.”

“He didn’t contradict himself in things he had said before. He just said that his message and my agenda of bringing jobs back into the country is going to be something that uplifts the Hispanic community,” Innis told Bennett.

So will Trump take over the White House? Only time will tell.

For more exclusive interviews, visit Financial Myth Busting with Dawn J. Bennett here.