On Monday, I argued that the stock market is bullish on the likelihood of a tax-and-spend government in January.

Many commenters reacted negatively — but against a point I wasn’t making!

In today’s video, I show you why, regardless of one’s opinions about taxes, investors should agree with Wall Street that government spending is the key to future profit opportunities.

It All Comes Down to Profits

If you want to make money in the stock market, you have to put ideology aside.

Earnings forecasts for the next year are based on an expectation that a new government will pump fiscal stimulus into the economy. Smart investors will act accordingly … even if they don’t like the source.

In this week’s video you’ll discover:

  • One chart explains why higher taxes can actually boost corporate profits. (0:59-7:05)
  • Why worries about inefficient government spending completely miss the point. (7:05-11:20)
  • Here’s the biggest hypocrisy about public policy and the economy. (11:20-13:00)
  • And more.

Click here to watch this week’s video or click the image below:

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As a side note: We don’t provide transcripts for our YouTube videos. Many of you have asked. However, if you would like to see subtitles, you do have that option. Click the “cc” button in the bottom-right corner of the video. The transcription won’t be perfect, but it should help.

Of course, you can also subscribe to my YouTube channel. Just click “Subscribe” on the top-right corner of the landing page. And follow me on Twitter here.

Kind Regards,

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Ted Bauman

Editor, The Bauman Letter