2016 was quite an interesting year, including a larger November surprise than most of us - probably even the President-Elect himself - could have ever imagined. And 2017 is shaping up to be just as if not more interesting; see the link to my Top 10 predictions for the coming year below.
The post-election period has so far been surprising as well. The many predictions - including my own - that the stock market would have an immediate and negative reaction to a Trump victory never materialized. In fact, quite the opposite has occurred as the market has rallied. Why?
To begin, Trump's acceptance speech was more inclusive and conciliatory than many believed that it would be. In addition, the Cabinet that he has assembled seems to be very pro-business (and by extension pro-economic growth). There is also optimism that taxes will be cut next year and that a relatively large infrastructure bill will be passed.
However - and this is very important - Trump continue to undermine himself with inappropriate tweets and what some would call un-Presidential behavior. Remember the old adage that it's hard to teach an old dog new tricks.
The new normal is that a very unconventional person will now be running the country. There will successes and there will be failures - but it will always be interesting.
The reality for the stock market is that there will be higher highs and lower lows - in other words, expect high levels of volatility as people react to President Trump's actions.
As always, however, help clients to focus on their long-term goals and objectives, and adjust portfolios as necessary. Timing the market doesn't work and neither does panicking. Prepare clients for the volatility and the fun and games.
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