New reality of investing & trading......

SO...we have a new President Elect, his focus was well known to the market for months.

Ironically, President elect focus was very similar in infrastructure spending with second place finisher....

Win or lose it was infrastructure spending as core focus of last election....

Rest of the focus of President elect will be subject to major scrutiny by his own team and all the elected officials......

Trade issues will be tackled with great care and sensitivity, any adjustment to tariffs in terms of duties will be of workable arrangement, with consultations with China, Mexico and Canada......

Trade agreement may take about a year in terms of implementation, so nothing unilateral can happen in immediate future.

Issues with EU may not come into play @ all......a low priority in scope of issue.

On the positive side, election is over.....

- We have one party majority in house, senate and governorship......

- SO..whatever President proposes will get smooth approval.....

- No more Government shut down or threat of it......

- This could be a very positive environment for GDP & Jobs growth......

- Prosperity means higher disposable income ......

- All this bodes well for Stock market and indices.......

Beside infrastructure related stocks like steels, copper, cement & construction, there will be other related beneficiaries like trucks & Railroads.

Technology will also benefit with repatriation of billions from overseas @ low rates or even free repatriation, AAPL is a huge beneficiary plus GOOG, IBM, HPQ to name a few....

YES...new reality is different, but everyone will adjust to this reality.

SO...expect continued series of all time highs in all indices, as honeymoon with new President will continue till end of March.......

Markets have been extremely volatile with polls and its implications, but now it is going to overdo in celebration of new focus.

Change is good, adjusting to it takes time.

SO...rethink portfolio in terms of new President and his ability, to make many adjustments to bring everyone along.

I remain positive!

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed