I don't think there was a ever a day so polarizing among the American people - some people are excited, some are terrified. No matter which side describes you, one thing is for certain: this is a turning point for the country and for our economics. Judging by the way the market is performing, we're headed towards the Golden Age, but don't let that fool you.
As I had to remind many of my peers post election, tanking in the stock market during the election was a reaction to unpredictability - in other words, the market believed that Hillary Clinton would be the next president and when this turned out to be wrong, the market initially panicked because it doesn't like to be wrong. Next, when it started to sink in how Mr. Trump's policies would benefit big business, the economy, and the market in general, stocks took off on a massive rally (the Dow nearly hit 20,000 points for the first time ever) and the momentum has kept up, even into the fourth quarter earnings season.
Lots of analysts are excited about this, but after the initial reaction, this worries me a bit. Things are way too speculative and too optimistic at this point, especially since we can safely say that Mr. Trump is coming into office with very little specific plans. Much of the market reaction is based on "feelings" and this is true whenever a Republican is elected president. Whether or not the market will keep going up as a result of these polices remains to be seen.
One thing that I think ought to benefit in the near-term are certain insurance providers and drug companies as parts of Obamacare are repealed. By making the healthcare sector compete for pricing, this in turn allows companies to find ways to improve profit margins. At least for the moment, this is one sector that will benefit from the melee.
Am I scared about this new regime? Not really. Because until I see a policy that is detrimentally harmful to people, communities, the environment, or the broader economy, I (personally) will not be afraid. Nothing has happened yet. Reserve your anger for something that is actually important...otherwise you're crying wolf like crazy, and when actual injustice rears its head, people will stop listening.
It's the only thing we've got for now. We have a government designed to prevent dictators and kings, the first on Earth of its kind. We'll be okay, everyone.
Greetings, GradMoney Readers!
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