— Eight years ago my initial reaction to the then surprise election of Donald J. Trump was that it was a black swan but we’d survive it.
— I had to change my tune the next day when the market took off like a rocket.
— This morning half of the country is in a state of shock and disbelief on the ramification of a second Trump administration.
— Why the market isn’t.
Black vs. White
BLACK — Eight years ago my read on the surprise election of Donald Trump was that he was totally unqualified for the the job and that the market would react negatively to his election as his administration would create uncertainty which the market always hates. This would cause the markets to crater in the short term. As clearer heads prevailed among those advising him the market would be stabilized and begin to move upward again. Remember he inherited a good economy from Barack Obama and the Fed was keeping its thumb on rates for most of his term. (Ladies and Gentlemen we have a Black Swan)
WHITE — My initial reaction to Trump administration one was completely wrong. Why? The stock market has but one major aim, making money. It does not care whether you are a Republican or Democrat. It has no moral compass or ethic. It’s all about profit. The promise of a 2 trillion dollar tax cut and deregulation, bare-knuckled capitalism, was the trigger for the continuation of the Obama bull market. This is exactly what we are seeing today. (I Need New Glasses–That Black Swan Was White!)
Your Take?
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This was a Stupid Swan Event.
Agreed, so many voting in their own worst interest . Never underestimate the stupidity of the public.
That the market reacted (and continues to react) to the upside is not that puzzling.
Corporate America put their Boy into Office and insured many State and Local slots
were filled by loyalist/dupes that they could continue to control. You don’t have to
be a Marxist to understand Corporate Control; our earliest behaviors have been under
the control of Authorities directing us to safety and learning. Has this become part of
our DNA, to yearn for controls, limiting our choices in return for a greater sense of security?
Did America just vote away it’s Freedom for a hollow promise of Security?
George Washington and his farewell address pointed out the dangers of hyper partisanship, and how people supporting a party point of view can make constituents feel like they have no voice, and there’s no way out (dysfunctional government). Then a strong man comes along and tells them. “ I can fix this.” We have seen this pattern before in history and it never works out well.