I’m fortunate that I have many retired clients who have had very successful careers in business in addition to helping many active professionals that are still accumulating their wealth. They all have different political views and I value all of their opinions.
After the November election, I spoke with many clients to gain their insight into President Trump’s victory and what it meant to them. A consensus emerged that President Trump was pro-business and there was confidence that since he had built a billion-dollar real estate empire himself, he could run the country. There were many other larger investors that I follow who had similar opinions. I was in agreement with them. Tax reform, rolling back of regulations, and infrastructure spending would all be a tailwind for future economic growth. I communicated this same pro-business message in many of my blogs.
Writing about politics is tricky. As one of my clients said, “It’s a touchy issue and you’re bound to set someone off with whatever you say.” Politics is an important topic this week because future earnings are now being negatively impacted because of the poor choice of words made by President Trump. His unscripted press conference on Tuesday alienated many voters and set this country into a direction that can cause long-term damage to our institutions. To borrow a quote from my client that I thought best expresses my own feelings, “we should spend less time tearing down the past, and work much harder on building, and unifying for the future.”
I have many clients that are strong Republican supporters and they are all very upset with President Trump. Many of my other clients that are strong Democratic supporters are going one step further and asking if it is time to go to cash. We are now in uncharted territory. Never has there been a time when most of the prominent business leaders of this country no longer can support the president. Offering any public support to the president has now become toxic to their businesses. Most CEO’s that were bullish on the president’s agenda can no longer advise him.
I believe that it’s impossible to predict politics. As soon as you think you have it figured out, the news cycle changes. I don’t play politics with my clients’ money. These types of events can create value, which will help to fuel future returns. It’s been impossible to predict this president. I’m sure that we are all hoping that he can lose the twitter account, begin to demonstrate some leadership, and act more presidential. If not, the stock market could experience a significant decline.
After all the mess in Washington, I’m doing the only thing a sane person can do – going on vacation with the family! I’m away next Friday and have a family wedding the following weekend. My next post will be the week after Labor Day. I hope that you all enjoy the rest of the summer!
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