Why you should keep politics out of investment decisions
Stock market moves over the next months will have no bearing on the final outcome
The year is 2020, and the world is entirely divided about who should occupy the White House from January. Well, not entirely ... one indomitable group is torn between their conscience and their personal financial interests: investors. Despite his many shortcomings, President Donald Trump is seen as a champion of the stock market. For him, it is the most reliable gauge of his own performance, and he acts accordingly.
Per the S&P 500 index, up 40% over the first three years of his reign, he was doing great. His corporate tax cuts in 2017 provided the early impetus. And when the market stalled in 2018 he broke one more taboo, openly pressurising the US Federal Reserve to lower rates. Eventually it did, feeding another rally and Trump’s sense of omnipotence. ..
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