AMERICA IS BEGINNING TO WONDER IF DONALD TRUMP CAN GOVERN—AT ALL!

Following the Presidential Election, there has been an on-again, off-again rally in the stock market, which might have been partially attributed to Donald Trump’s victory, last November.  Generally, the stock market performs best in the first and fourth calendar quarters, most years; however, some investors might have placed too much faith in Trump’s vague promises, raising the seasonal spurt even higher.   Also, some CEO’s seem to have swooned over his proposals:  the corporate tax-rate being halved; escalating depreciation on plant and equipment; eliminating most all regulations; and the “Border-Adjustment Tax”.

As of Friday, the Dow Jones Industrial Average rose 9.3% since Trump won, and the    S & P 500 was up by 8.3%.  There was little in the way of economic activity to have justified such a surge; however, some investors may have just followed the herd instinct.  They wanted to believe!  But like any other asset, when the price rises for no apparent reason, there might come a time where it cannot sustain that psychological momentum.  Did the markets seem to sense that yesterday?

Ever since he announced his candidacy, in June of 2015, Donald Trump has been harping on two primary goals—the worthless Wall, and his vow to “…replace ‘Obamacare’: with something much better, and at less cost.  Just trust me!”  HA! Donald raised the stakes too high, before his American Health Care Act had to be pulled yesterday—for the second time—due to insufficient support from his own Republican Party!

Always the person to find a scapegoat to blame–rather than blame House Speaker Paul Ryan, or the entire GOP–Donald blamed the Opposition Party.  For a self-proclaimed “Negotiator”, how ludicrous was it to have over-sold the “certain” success of his AHCA, as he had often boasted, and then blame the Democrats…but, for what?  He was trying to tear-down a perfectly good (first-step) of a comprehensive plan that could provide Affordable Health Care for all!

Many Americans, including investors, are beginning to wonder if Trump can actually govern! He boasted, before the election, about how many things he would do, beginning “Day One!”  But so far, he has accomplished very little.  On the negative side, however, the list of his idiotic moves is a mile long!

Consider the following problems that he has been entangled in:  the failed raid in Yemen, which resulted in the death of one Navy DEAL and 24 Yemeni civilians; attacking the American Judiciary for rebuking his two Anti-Muslim Bans; his apparent desire to control the Media; threatening a pre-emptive attack on a nuclear-armed North Korea—in China’s back yard; Trump’s potential collusion with Russia, and so on!

A number of Americans who voted for Trump have been on TV stating that they are having Voter’s Remorse.  It’s times like this when I wish that we had a Parliamentary System.  That way, just one “No Confidence!” vote would place M. P. Donald Trump, in a back-bench seat, where he belongs.  Oh, if only…!

When Trump stated yesterday that the GOP’s AHCA Plan had to be pulled, distancing himself from bad news as always, he proclaimed that the next item of business would be Tax Reform.  But there are two problems with that strategy, which he is overlooking:  a number of deep-pocketed conservative organizations, including the Koch Brothers, have come out again Trump’s Tax Plan; and the money that he was supposed to take from ACA customers was necessary to fund his large tax cuts for the Wealthiest two-percent!

Meanwhile, many institutional and individual investors are, no doubt, using this weekend to review Trump’s record—both positive and negative—and to decide what their next financial moves might be.  Additionally, many overseas investors are also considering whether the recent Trump Rally is real, or just a market bubble!  I sure wouldn’t be surprised it there is a pause, at least, in the rally–or perhaps a reversal.

 

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  1. #1 by Rose Fehr on March 26, 2017 - 7:01 AM

    I also got the feeling we were seeing billionaire against billionaire with the sides being drawn.

    • #2 by cheekos on March 26, 2017 - 12:44 PM

      Rose, thanks for visiting my blog, and commenting.

      Speaker Paul Ryan has taken Reagan’s old Trickle Down Mythology to heart, and he has re-branded it as “Dynamic Scoring”. Call it what you wish; but, George H. W. Bush was right, during the Primary Debate of 1980, when he called it; “Voodoo Economics.” It’s never been successfully demonstrated in the real world.

      If you look at charts of when the divergence really began, between the financial Have’s and Have Not’s, it was 1980. Pure coincidence, I’m sure! HA! But, look for Donald Lost-in-Space to try that out.

      Luckily, many people are starting to realize that, since his Latest and Greatest Health Care Fiasco was a scam, probably anything else that the “Dynamic Duo” comes up with, will equally be DOA, from the start.

  2. #3 by cheekos on March 27, 2017 - 5:04 AM

    At about 1:00 AM EDT Monday, the Dow Futures implies an opening of Down about 50 points, the S & P 500 Down by just a few and NASDAQ Down by about 10.0 points. For the most part, this means very little. It’s eight and a-half hours until the market open, And then it will have a whole day for more, and more. false news, Alt-Facts and Nonsense from the White House.

    I was more curious than anything, just wonder if there is any any major action; but, this would be pretty much of an average day–folling the drop, which had stated late on Friday, when the AHCA was pulled.

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