Why QUALITY Dividend Paying Stock Prices Are likely To Go Up For The Foreseeable Future(With a few hiccups of course) – February 14, 2022,
First and foremost, I believe that Democracy works, and even when there’s an overt instance of voter fraud eventually the laws of the universe will correct everything. I’m of the belief that the Democrats cheated to win the 2020 election. With that said, I don’t think this is the first time a U.S Election was stolen, I actually think George Bush cheated to win the election.
If people remember George Bush destroyed the U.S Economy, which prompted Americans to make borderline Socialist in Barack Obama the 44th U.S. President. Now during the reign of George Bush, he basically destroyed the U.S economy, that’s what happens when there’s election fraud, the beneficiary of the election fraud is often an unqualified idiot.
Based on what I’ve observed from Joe Biden he’s a chicken with his head cut off, he’s a clown, not worthy of being president, not only is Joe Biden an idiot, he made another unqualified person (Kamala Harris) his Vice President, idiots, do idiotic things, they can’t help themselves they’re idiots. The economic consequence of Joe Biden’s stupidity is inflation, now, unlike most people, I don’t point the blame SQUARELY on the Federal Reserve, when it comes to consumer price inflation in the United States, that problem is due in large part because of the REGULATORY environment.
The Minimum Wage Law REGULATION Equates to a PERMANENT Inflationary price for Labor
I’ll try to keep this as simple as possible, first and foremost yes I understand that working for wages is optional, but most humans prefer working for wages because there’s less risk working for wages, even if I do a horrible job for my employer he still has to pay me for my time. Whereas if I work for commissions, if I do a horrible job for my employer I get paid NOTHING, this is why most people opt to work for wages, even though working for wages results in a person paying the most taxes. There’s less risk of working for wages.
So when the government creates a minimum wage law, it equates to a permanent inflation in certain prices, which means that the prices of certain goods and services can’t go below a certain selling price, this, of course, is why under a fiat monetary system, some countries deem it wise to debase their currency to the U.S dollar. because let’s imagine the Chinese Renembi is debased next to the U.S dollar, even if China has its own minimum wage law if their currency in the global markets is worth-less than the U.S dollar, they(the Chinese) can take manufacturing jobs away from the United States.
So you’re aware the minimum wage law is actually a minimum wage regulation, once you understand this, you understand why Joe Biden is creating inflation all over the U.S economy. Since becoming President Joe Biden signed a record number of EXECUTIVE orders, Joe Biden has also declared war on fossil fuels. These regulations on oil and gas as an example equate to the cost of energy going up.
It’s illegal to break the minimum wage laws, and it’s illegal to break the laws of the Federal Governments energy regulatory authorities, sure energy companies could break or challenge the regulations on their industry, but that would cost them in fines, popularity, their stock prices would take a hit, they’d be used by Biden’s administration to show how evil and polluting the oil and gas industry is, so corporate America has adjusted to deal with the political stupidity, by allowing OPEC nations to lead price discovery.
These higher costs for ALL businesses(all businesses need energy) equates to inflation, now inflation is a good thing depending on a companies balance sheet. Inflation also equates to the price of debt potentially going up, because remember that inflation is a silent tax and if you or your company is in too much debt, inflation also means that your costs are going up, even if the Federal Reserve doesn’t raise interest interests, consumer price inflation could still wipe out a company or an individual.
This is something you have to comprehend when you’re involved in the stock market. Let’s for a second imagine that I’m a small business owner, who has a small portfolio of real estate properties, I don’t own my properties, they’re all mortgaged, hopefully, I’m smart enough to lock in my mortgage rates, but maybe the renter can’t make their monthly payments, or the value of my real estate property stops apprecating?
Maybe I have to now advertise to find tenants, and maybe my cost to maintain the property also goes up, when inflation happens, the government often creates new laws to tax the rich or create some sort of new price control mechanism, maybe a new regulation, all of these events and others I missed could lead a person with non-cash-flowing debt to go bankrupt or restructure.
Meanwhile, individuals and companies either with no debt or cash-flowing debt will see a drastic rise in their overall wealth, because they’re be riding the wave of inflation. To this very day, there are still rich people living in Venezuela, Argentina, and even Zimbabwe. As long as the country has a MARKET wealth can be derived. Now if a country goes full Cuba or North Korea, my advice is to leave while you still can, but as long as there is some sort of market you can ride the wave of inflation by making SMART investments in the right Dividend-paying stocks.
I don’t invest for only capital gains, but yes, there are opportunities to make a lot of money with stocks that don’t pay a Dividend. I don’t buy many Stocks that don’t pay a Dividend and even the ones I do buy are the result of my Dividend payments, and I buy those stocks like I’d buy a lottery ticket. Also, I can stomach losses, not all of my stocks are in the green, if you can’t stomach losses, find a financial planner that can help you. I’m everywhere in the markets that pay me cash to hold their asset. I love quality buys that tend to hold their value over time.
Interesting times ahead!