Evening Edition: Market Surges Following Trump Win, Will It Continue?
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I'm Abby Hornacek. I'm Ben Domenech. I'm Dana Perino, and this is the Fox News Rundown. Wednesday, November 13th, 2024. I'm John Zasier. Call it the Trump bump, if you will. The stock market has been flying up ever since Donald Trump won the presidential election. Investors are making money, but everyone on Wall Street is wondering...

Is this a post-election sugar high, or is the stock market run sustainable for the foreseeable future? There's a rhyme and a reason for it. There is a very strong belief that this man's going to come in and do the job. And again, we'll see going forward the proof will be in what they get done and how much they get done. This is a Fox News Rundown, Evening Edition. ♪

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Stocks, crypto and the US dollar have all been big media benefactors of Donald Trump's win in the presidential election. And as we turn the page to a new year and a new president, we're wondering what is that going to mean for the US economy going forward? Many economists warn Trump's threats of tariffs on foreign goods might increase inflation here. But in the meantime, the stock market and crypto rally continue. Well, a couple of things. Number one, before the election, the market was on the expensive side.

based on price earnings multiples, but they can contract if the economy starts to accelerate and profits start to accelerate. We're talking about it today with President of Copbomb Capital Management and Fox News business contributor, Gary Copbomb. And what we've had is this complete change of what I call complexion and perception in the market. You have to remember, we were going from potentially

Losing the Trump tax cuts and more tax hikes. There were proposals for unrealized capital gains tax, tax hike on the corporations, tax hike on long-term capital gains, a wealth tax, an investment tax, which, by the way, Obama put on with Obamacare. So we went from that to

to not only looks like they'll extend the Trump tax cuts, but who knows what else is next. And then I have to add in the big one. This government efficiency committee, for lack of a better word, think about it. The amount of dollars that they have been taken out of the economy to put into their hands, the government, and the amount of dollars that they have dreamt up

in a matter of that uh... that may change going forward when you have two people that are going to look at the bottom line how much is being spent where it's being spent and whether it's being wasted or not this can be a one-two punch that really helped things going forward and pretty much

fundamentally, I'm thrilled about it, but they're going to need to follow through with everything they're saying. So what you're saying is we don't actually know if the market is overvalued right now because of all these things that may happen with the Trump administration. Well, presently, all...

all things being equal, yes, overvalued right here. But again, if the economy soars and profits really go up, that means price earnings multiples come down, not as expensive anymore. And that's what the hope is at this juncture.

OK, crypto is also surge. I mean, Bitcoin up over 90,000 and it happened so, so quickly after this election. Dogecoin also, you talked about that Department of Government Accountability. Dogecoin, of course, the meme stock, the meme coin that is the cryptocurrency with Elon Musk involved there. He seems like he's going to be heavily involved in this Trump administration. And Doge has been a big benefactor of that. What's your take on the crypto market right now?

I would just tell you to be careful. A couple of things. Number one, there's no company. There's no earnings. There's no sales. There's no storefront. There's no product. It's people buying on top of each other. And you've got to remember the Dogecoin came out as a joke.

And I just wonder whether the joke's going to be on people buying into it. I'd be real careful about that. Bitcoin may be a different story. It seems like that has legs. It had a good move up, sat for eight months, broke out again. And I think there's something maybe there. But again, another asset that doesn't have a storefront, doesn't have a product. I'm more apt to look for some meat products.

when I invest, but it's something that's working right now. And again, just be very, very careful. I'm getting calls from 80-year-olds asking me about Bitcoin after it's already up a bazillion fold. That worries me a little bit. Yeah, it's hard to disregard, though, Gary, some of the gains that crypto has seen, not only this year, but last year as well, outperforming markets, at least Bitcoin did.

Oh, no argument on the gains. And we never argue with reality when it comes into the market. We're always a big believer in what the market's doing now, what the market's saying. And leave no doubt, people have a big interest. You're getting institutions, the big hedge funds and mutual funds with interest. Just remember, I'm about six, seven, eight months ago. There was not a lot of big interest from the big name companies.

And now all of a sudden they're jumping all over each other wanting to do exchanges and exchange traded funds for it. And that tends to feed on itself. So definitively, there's something going on there. But I just want you to remember, in the last bear market for stocks, the Bitcoin dropped 80 percent. I'm not saying the same thing is going to happen, but just remember, it's still an asset with price movement and price vulnerability if it decides to go that way.

During Donald Trump's first term in office, he did not renew Janet Yellen as Federal Reserve Chair and instead moved to nominate Jerome Powell. Now suddenly, Trump is coming back into power and there's some tension between him and Powell. We're speaking about the economy today with the president of Calbaum Capital Management and Fox News business contributor Gary Calbaum. We also love to hear Gary's takes on the economy and especially the stock market ahead. He's got some ideas on what the Federal Reserve might look like going forward with a new president going back to Washington.

Don't you go anywhere because the conversation continues next.

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All right, we discussed stocks, we discussed crypto. Next, let's discuss currencies, because another thing that's been on the rise since Trump won the election is the U.S. dollar. I found it very interesting because Russian President Vladimir Putin had put together a coalition where they wanted to start their own currency to try and battle against the U.S. dollar, which obviously has global market dominance. I mean, there's so many nations and other types of currencies that are based on our banking system. And I think that's a very interesting thing.

Any thoughts on the U.S. dollar and just how much higher that may go under a Trump administration? Yeah, nice try, Vladimir. That's the best thing I can say there. Look, we are the storeroom. We've always been, in spite of a lot of things that have been going on here with debt and deficits and utter stupidity and illogical moves by government. And all I can tell you is...

If the perception is you have a strong leader that's going to lead to a strong economy, and I call it, there was three words, we the people instead of we the government, you're going to tend to have a stronger dollar versus other currencies. And that's exactly what you observe.

seen over the last week. And I do believe there's a rhyme and a reason for it. There is a very strong belief that this man's going to come in and do the job. And again, we'll see going forward, the proof will be in what they get done and how much they get done. But all the principles that they have talked about, all the proposals are based on

fairer, efficient and effective and smaller government and a bigger economy. And for me, I can't ask for more when over the last few years we have seen what I call the big gargantuan headwind of massive government increases in reach,

in scope, in debt and deficits, while pretty much providing a headwind for everything we do every day. And I keep saying there's 150 million of us going to work every day, trying to do better for ourselves and families, creating, producing, and then we end up fighting $2 trillion to $3 trillion yearly deficits. And hopefully that's going to be a big change going forward.

All right, Gary, I'm glad you brought that up. Let's talk about some of these economic proposals because you seem pretty bullish on which way this could go. But there's been a lot of criticism about the tariff proposals that Donald Trump has been talking about here. Especially so with goods coming in from China, goods coming in from Mexico. We got the CPI for September today and inflation down to 2.6 percent. It was obviously 9.1 percent in July last year.

of two years ago. That was a 41-year high, by the way. Some of these economic experts are wondering, will these tariffs actually increase inflation? Do you see the Trump using tariffs as leverage in negotiation as a possible economic headwind?

I'm looking at it as a big negotiating tool right now. I believe the president-to-be is putting countries on notice. You be fair with us, and we'll do the right thing by you. You're not fair with us, and you're going to answer to us. I have no problem with a negotiating tool. I will tell you this. If we ever get to the point where 50% tariffs back and forth, that is going to be a gargantuan headwind for the economy.

economy for jobs, potential for inflation, definite shortages, is people going to produce less? I don't think it's ever going to come to that. And my fingers crossed and the hope is it is just that, a negotiating tool to put people on those. And we really need to because we're getting cheated out of a lot of bucks from

A lot of countries out there, big trading partners. So I'm good with the verbal part about it. It remains to be seen whether it gets into a real big you-know-what match going forward. Last thing for you, Gary, I want to talk about the Federal Reserve. There was a little bit of tension there between Chairman Jerome Powell and the incoming President Donald Trump. Powell earlier saying that he would not resign if the president-elect...

asked him to. Now, Trump doesn't have the power to fire Powell. He has to serve out the rest of his term. Do you see potential tension between the Federal Reserve and the president as a possible economic headwind? I mean, we've had a couple of rate cuts so far this year. Another decision possibly coming later this year also. Well, I'd say you can tell that Mr. Powell doesn't have a lot of love for the president when he tersely said,

no, as far as stepping down. Leave no doubt there's some tension, and that's because the president-elect wants to be a little bit more involved. He thinks there's been some big mistakes from Jay Powell going forward. I'm not a big fan of the Fed. I think they've

fall behind both ways i think they were a culprit in the inflation and that said it was transitory and nine months later books we were wrong uh... so i'd be careful there and i just think watch the ten-year yield that is a lot more important than anything jay powell does at this uh... juncture and the ten-year yield has been rising in the higher that goes uh... the more headwinds possibility uh... because of mortgage rates are going up in the cost of capital

from a small business man all the way to big business goes up. So that's something to watch. I'm not a big worry about the Fed. I'll start worrying again if they start printing money again and driving distortions up a wall in the markets. I think it's going to be a tough road between Trump and him. I think it's going to be somewhat antagonistic, and I hope it's not.

Gary Kaupom, we'll definitely keep an eye on that 10-year treasury yield and the curve and just how it looks against the S&P 500 for sure. And I know you will also. Gary, thanks a lot. Always appreciate your takes and being with us here on the Fox News Rundown Evening Edition podcast. And always a pleasure. Thank you so much for asking.

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