January 6, 2025 • 10 mins
America's Money Answers Man, Jordan Goodman joined Todd Walker Monday to preview 2025 as it pertains to econmic issues.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Jordan Goodman in America's Money Answers. Man joins us our
first visit of the new year, and of course time
to take stock and look ahead a little bit. And
of course twenty twenty four saw the Fed cutting rates,
including their last time with the opportunity to do so
just a couple of weeks ago. Jordan. The promise though,
is that twenty twenty five won't see as many rate cuts.
(00:24):
Talk about the thought process there.
Speaker 2 (00:27):
Well, if deed cut rates another quarter point in mid
December and said that they're going to probably cut twice
this year in twenty twenty five. Wall Street had been
looking for more than that, maybe four cuts. Basically, the
Fed's been seeing inflation come down some, but the latest
numbers have been up a little bit, and so they're
a little bit concerned about that. So they're being very
(00:48):
cautious about it. They want to get back to the
so called neutral rate, which is probably about three percent.
We're at about four and a half now, so they
got some room to go. But I think they're going
to be very cautious about because I don't want to
cut rates enough to start letting inflation pick up. And
with what's going to happen this year with the Trump administration,
(01:09):
there could be some potentially new inflationary pressures like tariffs,
like deporting immigrants making labor go up. So that's why
I think Defense kind of on cautious this year, after
having lowered interest rates by one percentage point in the
last quarter of last year.
Speaker 1 (01:26):
Not to mention the last inflation report we got was
already seeing a slight increase and the cooling has ended
before all the supposed concerns about Trump.
Speaker 2 (01:36):
Right, that's right, that's right. So they cut rates anyway,
but some people saying maybe they shouldn't even have done that.
So Chairman Powell's kind of cautious and saying we got
to see what the data looks like, but don't expect
four cuts in twenty twenty five.
Speaker 1 (01:52):
Jordan Goodman is with us. He is America's money answers Man.
Of course, you can always reach him via email Jordan
at money Answers dot com. Twenty four pretty good year
for the stock market. The Nasdaq hit twenty k of
the Dow forty five k, and a lot of good
reaction from the stock market upon the election of Donald Trump.
(02:14):
So big tech stocks going to continue to run am
up here, Jordan, looks like we're expecting another good year
in twenty twenty five.
Speaker 2 (02:22):
Yeah, that would be the third good year in a row.
And if in fact Trump comes through and deregulates and
cuts corporate taxes and increases of oil production, there's a
lot of things that could spur the stock market high.
Right after the election, it took off like a rocket
in anticipation of those kind of things, and then it
kind of faded toward the end of the year. But
(02:44):
still we're set up for a quite good stock market,
and I think the technology stocks, the Googles and Microsofts
and Apples and so on, will continue to do well.
Artificial intelligence really kind of came into its own in
twenty twenty four, and I'm going to see much water
application of it this year.
Speaker 1 (03:00):
Jordan. Of those Trump policies that he will try to
put into place, which one sort of ranked those in
importance of unleashing the stock market or the economy.
Speaker 2 (03:12):
There, I think deregulation is the most important one because
that's across the economy in many different areas. Lowering of
anti trust barriers and allowing more mergers and acquisitions is
certainly going to boost the stock market, and then taxes
would be the third. Lowering corporate taxes. He's talking about
lowering them from twenty one percent to fifteen percent would
(03:33):
boost corporate profits as well. So I think those three
are a pretty powerful combination.
Speaker 1 (03:37):
Well, and we certainly saw the very good year for
the crypto bros, Bitcoin and other cryptocurrencies, the booming and
the Trump is now pro crypto, and his guy that
he's appointed to the Securities and Exchange Commission, Paul Atkins,
is also seen in that light. So if if you're
(04:00):
into crypto, it looks like another good year ahead.
Speaker 2 (04:03):
Huh. Well, that was by far the biggest gain of
not only twenty twenty four of the last three years,
five years, ten years. I mean, it's been the asset.
It started the year and about thirty thousand bitcoin did
and ended over one hundred thousand. Just a tremendous move there,
and it was about seventy thousand before the election, so
(04:23):
it went up about thirty thousand after the election. Yes,
Trump's pick of Paul Atkins is a very pro crypto
lawyer to run the SEC will make it much more
pro crypto. Gary Gensler who's been running the SEC, and
here Biden has been very very cautious about crypto. The
wllway along and now it's going to be freed and
it's a good thing for America is the crypto capital
(04:45):
of the world. That's where things are going. So I
think crypto now about one hundred thousand on bitcoin is
probably going to go much higher this year.
Speaker 1 (04:53):
Well, speaking of America as the leader. Of course, for decades,
everything in the world has been based on the good
old greenback, the US dollar. We've heard this talk about bricks.
They're making their own so called exchange or security currency.
What more have we heard about.
Speaker 2 (05:13):
That that's going to be a major development. Bricks stands
for Brazil, Russia, India, China, South Africa, and they've been
joined by Saudi Arabia, United Emirates, Argentinas and other countries.
They don't want to be in the dollar standard anymore,
and they're creating their own bricks currency backed by gold
as they alternative to the dollar. Those countries have over
(05:35):
half the world's population are just China and India alone.
You can see the impact of that. Now Trump has
said any country that wants to get off the US
dollar as a reserve currency, we're going to put one
hundred percent tariffils that would crush the world economy right there.
But this is a movement that I don't think really
can be stopped because people don't like the kind of
(05:58):
deficits were running all the time, and they've been losing
faith in the dollar for a long time, and now
they're doing something about It'd.
Speaker 1 (06:06):
Be very interesting to see how that plays out. And
of course you mentioned Saudi Arabia. We have managed to
hold oil prices within reason Jordan despite all the complete
chaos in the Middle East. Can that continue or will
we see oil prices likely go up? How do you
see that?
Speaker 2 (06:26):
I think the oil prices are going to go down.
It's quite amazing that we've got oil roughly seventy dollars
a barrow, despite the hoodies shooting down tankers in the
Swiss Canal, missile exchanges between Iran and Israel, wore in
the Gaza Strip and Lebanon. Now the fall of a
sudden Syria just unleashing all these rebel forces causing chaos
(06:47):
and power struggles there. Opex has actually been cutting oil
production to avoid a glut on the market. And as
Trump talks about where drill Baby drill, we produce a
lot more oil in the United States. That'll put even
more downward pressure on oil prices. So that would be
a big benefit to the US economy. If we got
(07:08):
oil now roughly seventy down to say fifty or so,
that would cut prices at the pump and mean lower
transportation costs. So that's why they've been cutting production at OPEC,
because I don't want to have too much of a glut.
Speaker 1 (07:22):
Well, speaking of chaos, maybe it's just turmoil elsewhere, but
we've got problems with governments all over the world, and
no confidence here and no confidence there. It's kind of
a mess with EU members and elsewhere here.
Speaker 2 (07:38):
Around the world. There were a lot of elections in
twenty twenty four, and usually the incumbent lost in many
many cases. So just at the end of the year,
the Prime Minister of Germany or a lot of Schultz
lost the vote of conference, so they're going to have
a new election in Germany. The Prime minister of South
Korea got impeached after he tried to impose martial law
(08:02):
and the legislators rushed into the Assembly that overturned at
one hundred and ninety to zero, and then he got impeached.
The French government fell to a vote of no confidence
and they've got like a gridlock between the center, the
left and the right, and they'll have an election there
and who knows what's going to happen, so kind of
paralysis in France. The Tory Party, the Conservatives lost to
(08:25):
Labor in the United Kingdom for the first time in
a long time, so now there's a leftist government in
the UK. Japan had a change of government, and of
course Trump beat the incumbent Democrats. So the major countries
around the world all pretty much are having a change
in leadership. It's because the people are not happy with
the way things are going. So loud discontent was taken
(08:48):
out on world leaders last year. It probably will continue
into this year.
Speaker 1 (08:51):
And speaking of Trump and world leaders, I think the
number one thing, or at least high on the list
of things to watch is what does he do with China.
Of course, the trade tensions have already been ratcheting up
before Trump has even taken office, and likely he's going
to try and press whatever leverage he feels he has
(09:11):
and vice versa. It's going to be very telling how
that plays out.
Speaker 2 (09:16):
Well, these are the two largest economies in the world,
and even before Trump has gotten in, the trade tensions
escalated pretty dramatically. Here Trump is talking about putting a
thirty five percent tariff on all Chinese imports. We import
over five hundred billion dollars worth of stuff from China
every year, so that would really increase the price of
all these Chinese imports. China recently responded by stopping exports
(09:41):
of strategic and rare earth minerals, of which they have
about ninety seven percent of the world mark. They really
control it, and these are used in chips, just all
kinds of important places. That's a real comeback. And then
we're doing the same thing with Mexico and Canada. Trump's
talking about twenty five percent tariffs there. Now maybe he's
(10:01):
using US as a blunt instrument to get concessions out
of them, and hopefully that'll work. But both Canada and
Mexico have not responded particularly well. There's a lot of
turmoil in Canada with Justin Trudeau may be thrown out,
and the new president of Mexico, Claudia Schanbaum, is trying
to do what Trump wants, but maybe not to succeed.
So that's going to be one of the big stories
(10:22):
of this year is how the whole trade tensions works out.
Speaker 1 (10:25):
That is Jordan Goodman. He is America's money answers man.
Jordan will welcome you into a new year and thank
you for being with us.
Speaker 2 (10:33):
Very good. Thank you, Todd
Jordan Goodman in America's Money Answers. Man joins us our
first visit of the new year, and of course time
to take stock and look ahead a little bit. And
of course twenty twenty four saw the Fed cutting rates,
including their last time with the opportunity to do so
just a couple of weeks ago. Jordan. The promise though,
is that twenty twenty five won't see as many rate cuts.
(00:24):
Talk about the thought process there.
Speaker 2 (00:27):
Well, if deed cut rates another quarter point in mid
December and said that they're going to probably cut twice
this year in twenty twenty five. Wall Street had been
looking for more than that, maybe four cuts. Basically, the
Fed's been seeing inflation come down some, but the latest
numbers have been up a little bit, and so they're
a little bit concerned about that. So they're being very
(00:48):
cautious about it. They want to get back to the
so called neutral rate, which is probably about three percent.
We're at about four and a half now, so they
got some room to go. But I think they're going
to be very cautious about because I don't want to
cut rates enough to start letting inflation pick up. And
with what's going to happen this year with the Trump administration,
(01:09):
there could be some potentially new inflationary pressures like tariffs,
like deporting immigrants making labor go up. So that's why
I think Defense kind of on cautious this year, after
having lowered interest rates by one percentage point in the
last quarter of last year.
Speaker 1 (01:26):
Not to mention the last inflation report we got was
already seeing a slight increase and the cooling has ended
before all the supposed concerns about Trump.
Speaker 2 (01:36):
Right, that's right, that's right. So they cut rates anyway,
but some people saying maybe they shouldn't even have done that.
So Chairman Powell's kind of cautious and saying we got
to see what the data looks like, but don't expect
four cuts in twenty twenty five.
Speaker 1 (01:52):
Jordan Goodman is with us. He is America's money answers Man.
Of course, you can always reach him via email Jordan
at money Answers dot com. Twenty four pretty good year
for the stock market. The Nasdaq hit twenty k of
the Dow forty five k, and a lot of good
reaction from the stock market upon the election of Donald Trump.
(02:14):
So big tech stocks going to continue to run am
up here, Jordan, looks like we're expecting another good year
in twenty twenty five.
Speaker 2 (02:22):
Yeah, that would be the third good year in a row.
And if in fact Trump comes through and deregulates and
cuts corporate taxes and increases of oil production, there's a
lot of things that could spur the stock market high.
Right after the election, it took off like a rocket
in anticipation of those kind of things, and then it
kind of faded toward the end of the year. But
(02:44):
still we're set up for a quite good stock market,
and I think the technology stocks, the Googles and Microsofts
and Apples and so on, will continue to do well.
Artificial intelligence really kind of came into its own in
twenty twenty four, and I'm going to see much water
application of it this year.
Speaker 1 (03:00):
Jordan. Of those Trump policies that he will try to
put into place, which one sort of ranked those in
importance of unleashing the stock market or the economy.
Speaker 2 (03:12):
There, I think deregulation is the most important one because
that's across the economy in many different areas. Lowering of
anti trust barriers and allowing more mergers and acquisitions is
certainly going to boost the stock market, and then taxes
would be the third. Lowering corporate taxes. He's talking about
lowering them from twenty one percent to fifteen percent would
(03:33):
boost corporate profits as well. So I think those three
are a pretty powerful combination.
Speaker 1 (03:37):
Well, and we certainly saw the very good year for
the crypto bros, Bitcoin and other cryptocurrencies, the booming and
the Trump is now pro crypto, and his guy that
he's appointed to the Securities and Exchange Commission, Paul Atkins,
is also seen in that light. So if if you're
(04:00):
into crypto, it looks like another good year ahead.
Speaker 2 (04:03):
Huh. Well, that was by far the biggest gain of
not only twenty twenty four of the last three years,
five years, ten years. I mean, it's been the asset.
It started the year and about thirty thousand bitcoin did
and ended over one hundred thousand. Just a tremendous move there,
and it was about seventy thousand before the election, so
(04:23):
it went up about thirty thousand after the election. Yes,
Trump's pick of Paul Atkins is a very pro crypto
lawyer to run the SEC will make it much more
pro crypto. Gary Gensler who's been running the SEC, and
here Biden has been very very cautious about crypto. The
wllway along and now it's going to be freed and
it's a good thing for America is the crypto capital
(04:45):
of the world. That's where things are going. So I
think crypto now about one hundred thousand on bitcoin is
probably going to go much higher this year.
Speaker 1 (04:53):
Well, speaking of America as the leader. Of course, for decades,
everything in the world has been based on the good
old greenback, the US dollar. We've heard this talk about bricks.
They're making their own so called exchange or security currency.
What more have we heard about.
Speaker 2 (05:13):
That that's going to be a major development. Bricks stands
for Brazil, Russia, India, China, South Africa, and they've been
joined by Saudi Arabia, United Emirates, Argentinas and other countries.
They don't want to be in the dollar standard anymore,
and they're creating their own bricks currency backed by gold
as they alternative to the dollar. Those countries have over
(05:35):
half the world's population are just China and India alone.
You can see the impact of that. Now Trump has
said any country that wants to get off the US
dollar as a reserve currency, we're going to put one
hundred percent tariffils that would crush the world economy right there.
But this is a movement that I don't think really
can be stopped because people don't like the kind of
(05:58):
deficits were running all the time, and they've been losing
faith in the dollar for a long time, and now
they're doing something about It'd.
Speaker 1 (06:06):
Be very interesting to see how that plays out. And
of course you mentioned Saudi Arabia. We have managed to
hold oil prices within reason Jordan despite all the complete
chaos in the Middle East. Can that continue or will
we see oil prices likely go up? How do you
see that?
Speaker 2 (06:26):
I think the oil prices are going to go down.
It's quite amazing that we've got oil roughly seventy dollars
a barrow, despite the hoodies shooting down tankers in the
Swiss Canal, missile exchanges between Iran and Israel, wore in
the Gaza Strip and Lebanon. Now the fall of a
sudden Syria just unleashing all these rebel forces causing chaos
(06:47):
and power struggles there. Opex has actually been cutting oil
production to avoid a glut on the market. And as
Trump talks about where drill Baby drill, we produce a
lot more oil in the United States. That'll put even
more downward pressure on oil prices. So that would be
a big benefit to the US economy. If we got
(07:08):
oil now roughly seventy down to say fifty or so,
that would cut prices at the pump and mean lower
transportation costs. So that's why they've been cutting production at OPEC,
because I don't want to have too much of a glut.
Speaker 1 (07:22):
Well, speaking of chaos, maybe it's just turmoil elsewhere, but
we've got problems with governments all over the world, and
no confidence here and no confidence there. It's kind of
a mess with EU members and elsewhere here.
Speaker 2 (07:38):
Around the world. There were a lot of elections in
twenty twenty four, and usually the incumbent lost in many
many cases. So just at the end of the year,
the Prime Minister of Germany or a lot of Schultz
lost the vote of conference, so they're going to have
a new election in Germany. The Prime minister of South
Korea got impeached after he tried to impose martial law
(08:02):
and the legislators rushed into the Assembly that overturned at
one hundred and ninety to zero, and then he got impeached.
The French government fell to a vote of no confidence
and they've got like a gridlock between the center, the
left and the right, and they'll have an election there
and who knows what's going to happen, so kind of
paralysis in France. The Tory Party, the Conservatives lost to
(08:25):
Labor in the United Kingdom for the first time in
a long time, so now there's a leftist government in
the UK. Japan had a change of government, and of
course Trump beat the incumbent Democrats. So the major countries
around the world all pretty much are having a change
in leadership. It's because the people are not happy with
the way things are going. So loud discontent was taken
(08:48):
out on world leaders last year. It probably will continue
into this year.
Speaker 1 (08:51):
And speaking of Trump and world leaders, I think the
number one thing, or at least high on the list
of things to watch is what does he do with China.
Of course, the trade tensions have already been ratcheting up
before Trump has even taken office, and likely he's going
to try and press whatever leverage he feels he has
(09:11):
and vice versa. It's going to be very telling how
that plays out.
Speaker 2 (09:16):
Well, these are the two largest economies in the world,
and even before Trump has gotten in, the trade tensions
escalated pretty dramatically. Here Trump is talking about putting a
thirty five percent tariff on all Chinese imports. We import
over five hundred billion dollars worth of stuff from China
every year, so that would really increase the price of
all these Chinese imports. China recently responded by stopping exports
(09:41):
of strategic and rare earth minerals, of which they have
about ninety seven percent of the world mark. They really
control it, and these are used in chips, just all
kinds of important places. That's a real comeback. And then
we're doing the same thing with Mexico and Canada. Trump's
talking about twenty five percent tariffs there. Now maybe he's
(10:01):
using US as a blunt instrument to get concessions out
of them, and hopefully that'll work. But both Canada and
Mexico have not responded particularly well. There's a lot of
turmoil in Canada with Justin Trudeau may be thrown out,
and the new president of Mexico, Claudia Schanbaum, is trying
to do what Trump wants, but maybe not to succeed.
So that's going to be one of the big stories
(10:22):
of this year is how the whole trade tensions works out.
Speaker 1 (10:25):
That is Jordan Goodman. He is America's money answers man.
Jordan will welcome you into a new year and thank
you for being with us.
Speaker 2 (10:33):
Very good. Thank you, Todd
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