Wednesday morning after Election 2016, the 1,000 point drop in the Dow that many so-called experts predicted as they were watching Trump beat Clinton one battle ground state after another did not happen after all. In fact stocks are not only in the positive territory at noontime eastern standard time but had healthy gains of 1-1.5%. Still Myles Udland, a financial writer for Yahoo Finance says, “…don’t mistake Wednesday’s rally for an “all clear” sign from markets. The unknowns around any new presidency are considerable, and perhaps no recent administration presents more question marks for investors than a Trump White House”. Adam Parker, a strategist at Morgan Stanley, wrote in a note to clients on Wednesday that, “We are more bearish today than we were yesterday because of increased uncertainty.”
Frankly, I am tired of listening to these geniuses and shame to investors who blindly listen to them. These are the same type of geniuses who led investors on the wrong path in 2008. After investors lost 50% of their savings during the bear market that followed the great recession, these geniuses told them to get out of stocks.
Go ahead, listen to Udland and Parker. Get out of the stock market now and you’ll be sorry. I say this because Trump’s fiscal policy is pro-growth. Low taxes, less government regulations, repatriation of foreign profits, possible repeal of Obamacare, infrastructure investments, etc. Of course I am concerned about a few uncertainties such as Trump’s promise to replace Janet Yellen whom I think is doing a great job and protectionism but I don’t think Trump would act recklessly with regard to these two concerns. He has VP Pence and other technocrats to hold his hands. So when will the stock market crash? We will exchange thoughts and ideas. Follow this blog and learn.