I haven’t been on here in a while because I just don’t know what to say. I haven’t known what to say since the American election on Nov. 8.** As soon as the winner was officially declared people started asking me questions about what to do with their money. But the market response was unexpected, to say the least. (Great article here about experts and economic uncertainty.)
A few months ago when Brexit hit, stocks tumbled a bit and I went shopping. I was expecting the same to happen after Nov. 8, but instead, aside from an initial stumble by the overseas markets, they started climbing and stayed strong for days. (The Dow Jones set an all-time high on Nov. 9.)
It seems people are hoping that Trump will make good on all his economic promises, and that we’re at the start of a growth period. I’m also guessing that after such a long, drawn out affair, everyone was happy a decision was finally made and we could get on with it.
Yes, I’m guessing. As is everyone who tries to anticipate the markets, don’t let them fool ya. In a recent seminar, Larry Berman revealed that a 10-year analysis of his predictions showed he was right about 62% of the time. (Love his honesty.)
There’s more to come, with other elections imminent across Europe. It seems nationalism and protectionism are in fashion, again. (Can I just say that Coco Chanel would be my hero if she hadn’t shacked up with a Nazi? Sigh.) Here in Canada there’s the old joke that every time the US sneezes we catch a cold, so we’re right to pay attention to our neighbour’s business.
It’s going to be an interesting four years.
** I don’t know what to say about money, I mean. I have a lot to say about the election, and here’s a fun clip from Saturday Night Live.