photo by *Cindy*

Written by Nathan White, Paragon’s Chief Investment Officer

The President is going on another of his “grand” stages tonight with his jobs speech before Congress. I keep hoping, praying, and wishing that the President will finally pull a “Clinton” and present some real structural solutions to help the economy. Anything less will be very disappointing and now that most of the points seemed to have come out ahead of tonight it seems like we are just going to get more of the same stimulus that we’ve already got. More style than substance. The economy and markets are so starved for certainty at this point.

Clinton got it. He moved to the center and co-opted Republicans ideas and then got the credit (and deservedly so) as the economy soared. Our current President seems to have no inclination to do the same – yet. Self-preservation is a powerful motivation and the President’s time is pretty much up. One of the problems is that the President doesn’t have the same quality of advisors (including those from the private sector) that Clinton had.

I believe the answer to the President’s problems is right before him and all he has to do is reach out and grab it and the economy will take off – move to the center!

Here’s some of my views on what could or should be proposed and the probabilities of being proposed:

High Probability (Low Impact):

  • High Payroll tax cut extension (yawn)
  • Temporary tax credits for hiring (again, enough with temporary!)
  • Infrastructure bank/spending (OK)

Low Probability (High Impact)

  • Removal of the repatriation tax on foreign corporate earnings – an absolute no brainer that continues to mystify me why it isn’t done.
  • Dramatic approach addressing the housing situation
  • Structural tax reform

 

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.