Barry Ritholz sums up the impact President Donald Trump will have on your investments:
….We start with an overlooked truth: Presidents, regardless of party, get too much credit for when things go right and too much blame when they go wrong.
….Yes, Donald Trump can and will affect the economy and the markets. But we should not put all of our focus on the marginal impact of the president while giving short shrift to more important things such as corporate revenue and earnings, the Federal Reserve, interest rates, inflation, congressional spending, employment, retail sales, Supreme Court decisions, and, of course, valuations.
Quite right. Janet Yellen probably has more power over your investments than Trump does.
….I think we all hoped that once the election was over, we could go back to our normal lives without the incessant parade of campaign news.
No such luck.
Investors need a way to sequester the noisy news flow out of the White House. It is too easy to let the relentless and disturbing headlines throw off long-term financial plans. Investors must read the news, but not let it interfere with thinking clearly.
Look, let’s be honest about the commander-in-chief: He is the world’s leading Twitter troll, a man whose main goal is to interrupt your thinking, misquote and insult other people, engage in rhetorical sleight of hand, and impugn the integrity of those trying to do honest work. What all trolls want is a reaction, something Trump has achieved to great success.
Rule No. 1 on the internet is “Do not feed the trolls.” No one can really ignore the president of the United States, but it’s probably best to view much of what he says or tweets as minor background noise.
The President is not a conciliatory figure who is going to govern from the middle. The acrimonious feud with Democrats and the media is likely to continue for most of his term. So long as the GOP have a majority in Congress and the Senate, Trump has a fair shot at tax reform and infrastructure programs. If that should change, expect Obama-style gridlock.
Source: The Only Question Investors Have Is About Trump – Bloomberg
May 17, 2017 at 05:21AM
from ColinTwiggs
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