“No man who ever held the office of president would congratulate a friend on obtaining it.”
― John Adams
Case in point, look at the picture of a president when sworn in versus when a presidents’ term has concluded. In less than 2 weeks the new president will be inaugurated with controversy swirling in every direction. Along with the controversy are the myriad of prognostications coupled with a yuuuge dose of hysteria from about half the country. The predictions are too numerous to list and are of no value except for their comedic nature (in some cases). All the talking heads and prognosticators have to work with are the volumes of speeches given by president elect Trump and to date we’ve witnessed changes, modifications, and even a few reversals. Translation: no one has a clue what Trump is actually going to do or be able to do when he’s in office.
However, there are a few BIG items that must be done in order to get the economy moving, put people back to work and allow small businesses to operate and flourish once again.
- Appoint a justice to replace Justice Scalia
- Repeal Obamacare and without delay, replace it with common sense reforms.
- Taxes must be lowered and simplified
- Regulatory reform is mandatory. Obama added over $100 BILLION in regulatory costs. Return to cost-benefit rules; require new regs to sunset in 5 years; Kill the Dodd-Frank, job killing, expensive and unproductive mess.
- Enforce immigration laws
- Drain the swamp
As Obama packs his bags to move right down the street, an effort is being made to put spin on his economic record with drivel coming out of the MSM that “Barack Obama has left the economy of the US…. in “far better shape” as he leaves office than when he entered”. What a load of hooey!! Is that why Hillary was so sounded defeated?
So much remains to be said about what should be done in order to correct the destructive path we have been on for the last decade. I’ll address that in future columns and turn to the activity of the markets.
After the election markets took off much to the surprise of the “experts” who predicted disaster if Trump was elected. With the rally to new highs and knocking on the door of 20,000 on the Dow, the predictions are all over the map as usual.
This is what you must do to avoid getting caught in the hype in either direction! DO NOT listen to all the blather on TV, or written in publications or tweeted and posted on the web sites. Human nature says you will seek out the opinions you want to hear and hang your hat on them. That’s financial suicide. Put your blinders on, or your ear plugs in and pay attention to one thing only: your discipline. If you don’t have one, GET ONE NOW! If you don’t have a sell strategy, use a % that you can live with and STICK with it. If your tolerance is 8%, then sell your position when it declines 8%. Don’t let gains turn into losses! We are entering a time of chaos, uncertainty and it’s imperative that you stick to your program.
When the trend is in your favor, stay with it as long as it remains positive. When the trend reverses, sell and don’t look back.