Continue Reading Below
“It’s going well, isn’t it?” Varney said. “The economy is growing. Wages rising. Interest rates low. Trade deals in place.”
On top of all that, the markets continue to hit record highs but Varney said these two factors could crash the party.
“First, an unexpected event that comes out of nowhere takes the world by surprise,” he said. “Let’s just say a so-called ‘black swan’ event is always a possibility but can never be accurately forecast.”
Now that an election year has arrived, Varney said the biggest threat, a more tangible, “real” one, is “radical political change.”
“The Democrats appear to have shifted way out to the left,” he said. “If it looks like they could win the presidency, or worse, the presidency, the Senate and the House, then watch out below.”
Varney said the four Democratic frontrunners all propose big tax hikes which “reverse” the cuts which boosted Trump’s economy.
“You start taking trillions of dollars out of private hands and you're killing the goose that lays the prosperity egg,” he said.
The same four frontrunners also propose “dramatic” climate action but, according to Varney, the Green New Deal is not the way to sustain a booming economy.
“That means much higher energy prices, no matter what they tell you,” he said. “And it means an enormous increase in government spending and subsidies.”
Varney said he doesn’t believe any of these frontrunners can beat Trump in the election but if they get close, “investors will get very nervous.”
Putting the negatives aside, Varney said we should enjoy the “sweet spot” we’re in.
“The Trump-hating media, along with the Trump-hating left, will make a lot of noise but after the record-breaking holiday period we've just been through, it’s hard to argue that we really need to get rid of the president whose policies gave us genuine prosperity.”
Today marks the first trading day of the ‘20s and Varney said the decade is starting well.
“Life is good,” he said. “Come along for the ride.