Trump’s Infrastructure Plan
Gauging the potential results of a Trump presidency is difficult because of the wild claims he’s made on the campaign trail. Politicians have often made claims which prove to be false, but Trump has claimed Ted Cruz’s father was involved in the JFK assassination. This is an example of how his rhetoric can get beyond…
The Big Lie
The Russell 2000 has rallied 8.6% since the election hitting all-time highs. This is a powerful move even if it is a knee jerk buying reaction to Trump winning the election. The Russell 2000 had been underperforming before Trump was elected. While the entire market has rallied, the Russell has outperformed since the election as…
No Fuel in the Tank
We’ve seen some inexplicable moves in equities in the post-Trump election trading. It took a couple of days for me to realize the likely scenario which will play out over the next 4 years. To make an analogy, Trump is being put in the middle of a bank heist where the government is the robber…
Gold Hasn't Liked Trump
Investors have decided gold is not the place they want to be during the Trump administration. In the volatility following the election gold jumped about 2%, but it soon gave up that rally. Now it is actually down 4% from before the election results came out. There is a confluence of reasons why gold is…
Grubhub Can Learn from Facebook
This election has had a lot of vitriol. As a counter reaction to the politically correct culture, Trump has tweeted statements which were outside of the norm. It’s tough to say whether his opponents were actually offended or if they chose to be offended because they disagreed with his polices. Either way, this campaign has…
Fed Faced With Mission Impossible
This post-election period has been the most interesting in many decades. With Trump not being a politician, we didn’t have as good of an idea of what he would do as president as we usually do at this point in time. A lot of the breaking news reports to come out of the Trump administration…
Trump’s Rhetoric Versus Reality
The market has become unhinged from reality in the past few years as investors have decided to ignore what companies are telling them and instead listen to what Fed officials are saying. If Fed officials say the labor market is strong and inflation is low, investors believe them. Maybe investors don’t believe them and are…
Trump Is Status Quo
As I said in my last article, I was wrong about the market’s reaction to Trump winning. This wasn’t a Brexit market reaction. This was a reaction like we’ve seen to jobs reports in the past. The market goes up whether there is a good or bad report. In this case, the market would find…
President-Elect Trump Acceptance Speech
Against the odds and what most analysts predicted, President-Elect Trump pulled off a convincing victory in the Electoral College where he may reach 300 votes. He outperformed and won in some states which were thought to be blue: Pennsylvania, Wisconsin, and likely Michigan. He won the swing states he needed to win: Florida, North Carolina,…
Diversification Against Bubbles
When I say diversification against bubbles, I would argue the current state of the markets makes now the most difficult time to invest in many decades. I get asked what to invest in constantly by friends and family. While this would appear normal, the reason why I get asked this question is not. I make…