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Don't be pessimistic: Americans are completely tied to the U.S. stock market
Since Trump's account went live these past few days, I've seen a huge master plan, hahaha
The few things that happened in the U.S. these days look like separate events, but when you connect the dots, it's really a strategic game.
On July 4th, the 250th anniversary of the founding of the nation, Trump's account officially launched.
For American children born between 2025 and 2028, the government will deposit $1,000 per child in one lump sum, invested in stock index funds, which can only be withdrawn at age 18. So every newborn becomes a U.S. stock shareholder as soon as they open their eyes.
Then, big names started lining up to pour in money. The Dell couple donated $6.25 billion, and also gave $250 in opening funds to 25 million children.
Micron donated $250 million. On Monday, SpaceX President Shotwell and her husband donated 2 million shares of stock, giving one share to each of over two million children, worth $320 million at current prices. BlackRock, Intel, and JPMorgan all followed with matching donations.
Then the president turned around and gave a shout-out on CNBC to each of these donating companies, praising Micron as a great company and Dell as an incredible one.
If you connect these three steps, it's a closed loop.
The state gives money for everyone to buy stocks, companies donate to the president's signature project, and the president uses the national megaphone to endorse those companies' stocks.
Once this game is played out, a new layer has been welded onto the U.S. stock market: political backing.
I've been saying a key theme: The deepest moat for the U.S. stock market in recent years isn't any company's technology, but the fact that it has tied the nation's money to this ship.
401(k) buys every month, pension funds enter the market, and now even newborns are included. From cradle to retirement, an American's entire life is tied to the U.S. stock market with one rope after another.
The more people tied to the ship, the harder it is to capsize. Whoever dares to let the U.S. stock market crash would be up against the retirement savings of tens of millions of families and the future of their children—no politician can afford that consequence.
That's why I've never been pessimistic about the U.S. stock market in the long run.