How About That Stock Market?

 

Whenever challenged about his policies, President Trump points to the stock market. Sure, gas prices are higher, but look at the Dow. Grocery prices are up, but look at the stock market. But I can’t afford health insurance. Sell some of your stock. What do you mean you don’t have any stock. He’s right that the stock market has been on the rise since before he took office. This all benefits those who have investments in the market, but for those living paycheck to paycheck, now running up credit card debt, a strong stock market is of no value.

One scary factor in this scenario is that AI is now the dominant force driving much of this market valuation. As much as 25% of the S&P 500’s total valuation is being driven by AI-related anticipated growth. A small group of tech companies called the “Magnificent Seven” controls up to 45% of the S&P market capitalization. One company, Nvidia, was responsible for 15% of all of the S&P’s total return for 2025.

Like our predecessors Spain, Great Britain, and Russia (Soviet Union) on the world stage, we are following a well-choreographed path. We have over-extended our military involvement across the globe with a corresponding disproportionate financial expenditure. That uncontrolled spending has resulted in a national debt that now exceeds our annual GDP. The vaunted U.S. dollar, which has been the global standard for exchange currency for many decades, is in decline. It lost 10% of its share in the first year of Trump’s second presidency. Our position as the world's dominant reserve currency has declined from 70% in 2020, to around 58% today.

The dollar’s decline against the Euro, Swiss franc, and Japanese yen is largely due to Trump’s wild west approach to trade tariffs and market uncertainty. Our economic future lies in the hands of a man who actually bankrupted casinos. We are now where Spain, Great Britain, and the former Soviet Union have been before. It’s getting late and the DJ at this sock hop just dropped the needle on his 45 of The Drifters singing, "Save The Last Dance for Me."

[Postscript: Should I have used Unchained Melody, Goodnight My Love, Theme From A Summer Place, or perhaps Sealed With a Kiss for that last dance song? I know I already lost the younger audience when I “dropped the needle on his 45.” What was your favorite?]