President Trump is Now In Office For More Than a Year
I wrote what follows below about ten months ago. Now we are seeing market instability and then in early February a huge drop in the market. No matter how you gauge the plummeting market one important issue remains. There may be an increasing concern about inflation but hidden underneath are worries about the doubt surrounding President Trump.
My assumption is always that not losing savings is the most important issue. There is always a way to earn more but recovering from lost savings can be almost overwhelming. Ask people who lost savings in 2009.
I wrote what follows for Facebook, you may wish to consider this path:
StrongStep Actions STEPS YOU CAN TAKE TO PROTECT YOUR FAMILY.
How am I greeting the new Trump administration? I am gradually selling holdings in stock (but not bond) funds. I am proceeding slowly, incrementally. Why would I be selling equities (stocks) when the stock market has been doing quite well in past months?
Because what is likely to happen is the almost comical disorganization of the Trump government will gradually be understood by professional traders and finally the public. I believe there will be a quiet selloff, likely not huge, as stock holders begin seeing the American government is poorly coordinated. That means our future will be far less stable. If there is a rolling sell off the market will drop.
I believe now will be a good time to move more holdings into cash. You can spend cash. You can always reinvest that cash if times are calm.
Is there historical precedent for such a sell off? There has never been a President who acts like Mr. Trump. It would be hard to compare him to prior Presidents.
Would Ronald Reagan, the paragon of conservative thought, actually trust Donald Trump? Over half of Republicans do not trust Donald Trump.