The Capitalist Investor - Episode 159

And we’re back! Welcome to our first episode of “The Capitalist Investor” in 2023. Hopefully 2023 is better than the crazy things we saw in 2022. We try to be optimistic during turbulent times, but at the end of the day, we need to pay attention to all of the good & bad to come up with our thoughts & views about the future to keep our eye on the ball. As we head into 2023, there are a lot of things we are keeping our eye on.

The Tax Code

The tax code changes that are going into effect in 2023 are going to have a big impact on the markets. Businesses are going to be affected the most, and it could not have come at a worse time. The team talks about how these changes are going to affect businesses and the market as a whole. The Inflation Reduction Act might actually work on businesses, but reducing demand through the middle-class isn’t a good thing. Businesses may be worse off due to changes in capital expensing, R&D expensing, and interest expensing. The new tax code will disincentivize businesses from growing, and this will cost consumers jobs at a time when the Federal Reserve’s interest rates are crushing demand. All of this will impact the economy, the markets, and you’re wealth, which is why you need to pay attention to fiscal policy. The new tax plan essentially is making the government bigger through more tax revenue, which is causing the government to pick the winners & losers through the re-distribution of wealth.

Oil & EV’s

Oil has recently been selling off, which might suggest a couple of different viewpoints. It could suggest that a recession is looming as demand decreases throughout the world. It could also suggest that the supply chain of oil has gotten better. But that doesn’t mean there aren’t risks in 2023 for oil. An escalation in Russia/Ukraine of China/Taiwan could send oil higher. Also, China re-opening the economy could increase demand in oil as well. Ultimately, lower oil costs is a good thing for the American consumer who is already struggling and is a good thing for inflationary pressures. But it’s not a good thing for Electric Vehicles. One of the selling points for EV’s is the cost of gasoline compared to electricity. As gas prices go lower, there is less incentive for people to buy Electric Vehicles. What does this mean for the investment world and stocks like Tesla?

McDonald’s Using Technology & AI

Cancelled this week involves a conversation around McDonald’s and their first restaurant to replace all of their workers by using machines & technologies to make the food for customers. What is the long-term impact technology has on the overall eceonomy and is it even sustainable in a capitalistic world? What ultimately might happen as time goes on and middle-class jobs are replaced by artificial intelligence and machines? It’s something we need to pay attention too as technology continues to exponentially grow and businesses continue to use technology faster as the cost of hiring employees continues to rise.

TIMESTAMPS

0:00:04   The Impact of the Secure Act on Businesses and the Market in 2023

0:02:15   The Impact of the Inflation Reduction Act on Businesses

0:03:58   The Impact of the Trump Tax Code on Businesses and the Economy

0:06:56   The Impact of Rising Interest Rates on Businesses

0:09:19   The Impact of the New Tax Laws on the Stock Market

0:11:44   The Impact of the Child Tax Credit on the Economy

0:14:00   The Impact of Redistribution of Wealth on the Economy

0:17:21   Oil Prices and the Electric Vehicle Market

0:19:10   The Impact of Cheap Gas on Electric Vehicles

0:21:33   The Impact of Electric Vehicles on the Automotive Industry

0:22:58   The Future of Electric Vehicles: A Conversation with Tesla Owners

0:25:46    Tesla is Still Overvalued

0:27:33   The Impact of Automation on the Fast Food Industry

0:29:43   The Impact of Technology on the Workforce

0:31:25   The Impact of Technology on Society

0:32:58   The Future of Work: A Discussion on the Impact of Technology

 

Connect With Mark Tepper

Connect With Ryan Dobroka

Connect with Derek Gabrielsen

Connect With Luke Lloyd

Connect with Tony Zabiegala

Send your questions and comments to us at info@SWPConnect.com

Keep Listening to The Capitalist Investor:
Episode 1:
Capitalism vs Socialism
Episode 3:
Impact of a Bernie Sanders Presidency
Episode 4:
Coronavirus, Pandemics, and Your Money
Episode 2:
Is the Stock Market Overvalued?
Episode 5:
What We Consider A Smart Investment Strategy, Ep #5
Episode 6:
Why Investing In IPOs Is Not A Good Idea, Ep #6
Episode 7:
How a Joe Biden Presidency Will Impact Your Portfolio, Ep #7
Episode 11:
The Student Loan Problem: Is Capitalism to Blame? Ep #11